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The economic consequences of ISO 9000 Certification in East and West German firms in the mechanical engineering industry

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  • Nikolaus Beck
  • Peter Walgenbach

Abstract

A central argument of new institutionalism is that organizational success depends not only on efficient coordination and control of productive activities, but on conforming to institutionalized expectations. There is a dearth of empirical studies which analyze the effects of the adoption of institutionalized elements. In our study, we examine the effect of ISO 9000 certification on resource inflow of German mechanical engineering firms. Our findings suggest that organizations are actually rewarded for complying with institutionalized expectations and implementing ISO 9000 standards. Our findings also show that the readiness to comply with institutionalized norms led to different economic consequences in East and West Germany.

Suggested Citation

  • Nikolaus Beck & Peter Walgenbach, 2009. "The economic consequences of ISO 9000 Certification in East and West German firms in the mechanical engineering industry," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 14(2), pages 166-185.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2009_02_beck
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    Keywords

    East Germany; ISO 9000; institutional theory; performance;

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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