1. RESEARCH METHODOLOGY This chapterwill describe the research design,population framework, sample selection, instrument selection, variablesemployed for measuring impact and motivation of ISO 9001 certification, reliabilityand validity of research instrument, treatment of measuring scales, datacollection method, data analysis techniques and software used for analysis. 1.
1 ResearchDesign A quantitativeresearch approach has been employed to collect the relevant information associatedwith the ISO 9001 impact. It is a deductive research study which will test thevalidity of the hypotheses discussed under section 3.4. Unit of analysis of theresearch study includes the organizations which are ISO 9001 certified.
Thedata is collected through online survey form filled by quality manager orrepresentative from each ISO 9001 certified organization included in thesample. The research meets the requirements of descriptive research by describingthe conceptual characteristics of ISO 9001 certification and organizationalperformance and the connection between these two variables. 1.2 SampleDesign 1.
2.1 PopulationFrame This study has focused on the ISO 9001 certifiedorganizations of Pakistan including project base and functional organizations,product and service industry of small and large scale dispersed all over thePakistan. As per ISO Survey Report 2016, total 31126 organizations have acquired ISO 9001 certification since1993 till 2016 and 2162 in 2016 in Pakistan. 1.2.2 Sampleselection The technique used for sample design is convenience samplingbased on the availability of contact details of relevant QA person of the ISO9001 certified organization. However, it is ensured to select the organizationsin such a way that a wide spectrum of the research and business activitiesundertaken in Pakistan has been addressed. It includes the design anddevelopment, manufacturing, construction and services organizations of Pakistanhaving project base or functional setup, dispersed all over the Pakistan.
The companies have beenselected from the available list of ISO 9001 certified organizations ofPakistan provided by a certification body of Pakistan. A sample of 180companies is selected and the Instrument is sent through mail to eachrespondent. After a number of reminders to various participants the totalnumber of complete responses received are 108 with a response rate of 60%.
Thedetails of the organizations are provided in Appendix 8.2. The sample size and response rate of the study issatisfactory with respect to the other studies that have employed comparablemethodology.
In a survey, carried out in Greek by Vasileiosand Odysseas (2015), to find the impact of ISO 9001 certification, the samplesize was 160, whereas 4168 companies were ISO 9001 certified in Greek at thetime of study. Total of 146 responses were received to the author. Similarly, Gilbertoand Antonio (2013) have carried out study on the motivation and benefits of ISO9001 implementation in Portugal and selected sample size of 426 certifiedcompanies. Total number of 4733 companies were ISO 9001 certified in Portugalat the time of study and the responses received were 260, having response rateof 61.03%. The response rate of Corbett(2003) study of 15 different countries regarding benefits obtained by ISO 9001certification was 25.
19%. 1.3 InstrumentSelection The research Instrument used for thesurvey, has been developed by Corbett et al.
(2003) to measure the benefits andmotivations of ISO 9001 in 15 countries worldwide. The same instrument has beenused by Bozena, Jens and Jorgen(2003) and Gilberto andAntonio (2013). The Instrument was customized and modified in order to meet thecultural factors of Pakistan by editing and rewording some questions to anunambiguous and understandable language. Five certified lead auditors of ISO 9001 qualitymanagement systems (QMS) have reviewed and assessed the instrument.
Few minorchanges have been incorporated to the Instrument as a result of the review. 1.3.1 InstrumentDesign TheInstrument is divided into three main parts. First part is the related to theinformation of the participant and the organization, which includes name of theparticipant and organization, type of the organization (Public or private),category of the organization (project based or non-project based) and nature ofbusiness (design and development, manufacturing, construction, services orothers). Secondpart of the Instrument measures the motivation factors of the organization forISO 9001 certification. Motivation is measured through eleven items mentionedin Table 3.2.
The eleven items can be broadly categorized Internal and ExternalMotives. The Internal motives include cost reduction, environment andquality Improvement, capturing workers’ knowledge, benefits experienced byothers. The External Motivation include corporate image, marketing advantage,customers pressure and demand, certified competitors, avoidpotential export barriers, relations with communities and authorities. Thirdpart of the Instrument measures the Impact of ISO 9001 certification onorganizational performance. The organizational performance is measured through thirteenitems mentioned in Table 3.1. Organizational performance measures can also becategorized into Internal and External Performance measures. InternalPerformance measures include the cost reduction, environmental and qualityimprovement, improvement in productivity, profit margin, internal proceduresand employee morale.
The External Performance Measures include the Improvementin the corporate image, increase in market share, customer satisfaction and ontime delivery to the customers, Improvement in relation withcommunities and authorities. 1.3.2 Treatmentof Scales AlthoughSymonds (1924) and Ghiselli (1955) proposed that the 7 point Likert scale providesoptimal reliability and Miller (1956) states that the mind of a human can onlytake 6 items at a time and something more than 6 would be ineffective.
Hence, adecision was taken to use a 5 point scale. A 5 point scale is very easy todescribe for every response category. For example, category (1) means NotImportant At All; category (2) means Not Important; category (3) means SomewhatImportant; category (4) means Important; and category (5) means Extremely Important.Moreover, the reference studies Corbett (2003), Bozena et al. (2003) and Gilberto andAntonio (2013) have also utilized the five point scale.
1.4 Datacollection procedure Datacollection is the most critical part of the research and it has takenconsiderable amount of effort and time. Firstly, the list of names of the ISO9001 certified organizations have been taken through certification bodies.Certification bodies have not provided the contact details of the qualityrepresentative of certified organizations because of their rules andregulation. Therefore, the next step was to work on the contact details such asemail addresses and phone numbers. These details have been collected throughthe websites of the companies and telephonic conversation with the relevantpersonnel. Afterthe collection of these details the questionnaires have been sent to thequality manager or representative of each organization in sample through email.
It is ensured that the respondents are well aware of the background of thestudy, its theoretical and practical importance and confidentiality of theinformation provided. The description ofthe scale used was also explained to the each participant. 1.
5 DataAnalysis 1.5.1 AnalyticalFramework Asalready explained, the responses of the respondents have been taken on afive-point scale. The responses of motivation for certification with the codes”not important at all, not important, somewhat important, important andextremely Important” are assigned the values from 1 to 5 to assess the levelsof importance. Similarly the response against the impact on organizationalperformance with the codes “no impact, minor impact, moderate impact,substantial impact and very substantial impact” are assigned the values from 1to 5 to assess the level of impact. 1.5.2 DataScreeningThe respondentsof filled instrument with missing values were requested again to fill thecomplete survey.
The survey instruments which were not completely filled by therespondents have not been included in the data analysis. All the values areutilized as provided by the participants without skipping the outliers. 1.5.3 Reliabilityand Validity Reliability of theresearch items is measured through Cronbach alpha. The value of Cronbach alphafor the 13 items used to measure the impact of the certification, is found tobe 0.905, which is regarded as an”excellent” value to explain the strength for the internal consistency ofresponses.
Cronbach alpha for the 11 items used to measure the motivations forthe certification is found to be 0.819,which is considered as a “good” value to explain the strength for the internalconsistency of responses. Confirmatoryfactor analysis has been used to assess the validity of instrument. Analysis isperformed through AMOS software.
Results showed the value of ?2=240.141 (p=0.053) i.e p>0.05. Thegoodness of fit indices CFI, TLI and RMSEA have been found 0.
967, 0.959 and 0.052 respectively. As per therecommendation of Brown (2006), RMSEA close to 0.06 or less; CFI close to 0.95or greater; and TLI close to 0.95 or greater are acceptable values for modelfit. It is worth full to note that these are not rigid values as Brownclarified that use of “close to” is purposeful.
Therefore, it can be concludedthat model is fit. Moreover, this instrument has also been validated byprevious studies (Corbettet al. 2003; Bozena et al. 2003; Gilberto and Antonio, 2013).
Corbett et al.(2003) have developed and used the instrument to measure the benefits andmotivations of ISO 9001 and ISO 14001 in 15 countries worldwide including U.S.,Canada, France, Sweden, Japan, South Korea, Hong Kong, Taiwan, Australia, NewZealand, Singapore, Philippines, Malaysia, Indonesia, and Thailand. The sameinstrument has been used by Bozena et al. (2003) to compare the motives andbenefits of ISO 9001 and ISO 14001 in Sweden. Gilberto and Antonio (2013) haveutilized this instrument to find the motivations and benefits of ISO 9001 inPortugal.
1.5.4 Statisticaltools used for Data Analysis Firstly comparison of the demographic variables hasbeen carried out using graphs in SPSS. Multivariate analysis is employedfor data analysis based on statistical methods that take into account multiple variablessimultaneously for each research item.
Descriptive statistical analysis hasbeen performed to using Descriptive statistic tools (SPSS 20). Multicollinearityof the independent variables is measured through Variance Inflation Factors(VIF). In order to test the hypotheses and find the relation between variables,linear regression analysis has been carried out. The output of regression analysis contains thecorrelation coefficients and regression coefficients.
As per Cohen (1988), correlationcoefficient value ranging from 0.1 to 0.4 is categorized as a weak positive correlationand above 0.5 is categorized as a strong positive correlation. Significance ofregression coefficients is decided by p-value.
If the p-value is less than ?then the coefficients are said to be significant. Factor analysis isused to reduce the number of items which has major effect on performance ofcertified organizations as well as to identify the major motives forcertification. Prior to factor analysis, the value of KMO (Kaiser-Meyer-Olkin)was determined which is a statistical tool used to determine the quality of thecorrelation between variables. Values of KMO for impact and motives are foundto be 0.
884 and 0.806 respectively and as per Hutcheson and Sofroniou (1999), KMOvalue between 0.8 and 0.9 is “great” for factor analysis.
Principal ComponentAnalysis has been used to conduct factor analysis. The rotation method used isVarimax because the factors are expected to be independent. The statistical tools used for the study include Cronbach’salpha test, descriptive statistical analysis and factor analysis which areexplained in details chapter 5. 1.
6 Softwareused Googleforms have been used to make the questionnaire and gather the data. This datais then imported in SPSS 20 and analysis is performed using SPSS 20.