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Introduction
Organizational competitiveness, a demand in our global economy, has compelled companies to invest increasingly in resources for the enhancement of their management practices. The economic and market globalization which results in new market interactions has given rise to an increasingly important role of standards (Aba and Badar, 2013). Further, striving to create better quality products and services has resulted in the need for unified international quality standards (Badiru, 1995).
Guasch et al. (2007) and the National Research Council (1995) pointed out that standards have the ability to exploit network externalities, increase productive and innovative efficiency, decrease imperfect information, diffuse innovation, reduce cost, promote competition, increase compatibility, enhance process management, and foster public welfare. These positive effects of standards are not mutually exclusive (National Research Council, 1995). Guasch et al. (2007) also mentioned the negative economic effects of standards such as the imposition of constraints on innovation and the decrease of market competition. Santos et al. (2011) stated the major benefits of quality systems certifications: "increase in the number of customers and consequent volume of deliveries, improvement of profitability and productivity of the company as well as the competitive position and performance (cost savings), reduction of the number of external complaints and internal defects/scrap and achievement of some important client" (p. 54).
There are approximately 60 programs and awards that reward firms for improving quality globally (Aba and Badar, 2013; Wilson et al. , 2003). The most prominent ones are the Malcolm Baldrige, Six Sigma, and International Organization for Standardization (ISO) 14000 programs, and ISO 9000 programs (Aba and Badar, 2013; Troy, 1992). It is imperative for management to know if the financial advantages associated with ISO 9000 certification outweigh the costs associated with obtaining the certification.
The organization, ISO, was formed in Geneva, Switzerland in 1946 to develop international, industrial, and quality standards as a model for quality assurance standards in design, development, production, installation, and service (Aba and Badar, 2013). ISO 9000 is a descriptor for a series of quality management standards. These ISO 9000 standards were published by ISO in 1987 after a process of consensus handled by ISO Technical Committee 176 and are codified, verifiable, and easily adaptable (Aba and Badar, 2013; Wilson et al. , 2003). Updates and changes...