The Implementation of ISO 9000 Quality Management System and Business Performance of Contractors in Malaysia

This study investigates the implementation of ISO 9000 quality management practices and perceived business performance of contractors in Malaysia. The ISO 9000 quality management system practices were operationalised using four variables; they are management responsibility, resource management, product realisation, and measurement, analysis and improvement. The dependent variable is perceived business performance. The objectives of this study are: 1) to determine whether there are differences in perceived business performance, management responsibility, resource management, product realisation, and measurement, analysis and improvement between the ISO 9000 certified companies and non-ISO 9000 certified companies, 2) to determine whether there are relationships between ISO 9000 quality management practices and perceived
business performance of contractors in Malaysia, and 3) to identify the most influencing variable in the ISO 9000 quality management practices that affects perceived business performance of the contractor, as well as identify the extent to which the variable may affect business Performance. There are two main hypotheses, and 10 specific hypotheses that were posited and tested. The study was based on a survey design and the time horizon was cross-sectional. The survey was carried out randomly on contractors operating in Peninsular of Malaysia. The numbers of respondents for ISO 9000 and non-ISO 9000
participated in this study were 54 and 270 Companies, respectively. The study hypotheses were tested using t-test, correlation and multivariate analyses. The results supported all the hypotheses of the study. The results suggest that there are differences between the ISO 9000 and non-ISO 9000 certified companies, in terms of perceived business performance, management responsibility, resource management, product realisation, and measurement, analysis and improvement.
The results of correlational analyses revealed that there are associations between the implementation of ISO 9000 quality management and perceived business performance of contractors in Malaysia. Regression analyses also revealed that three variables in the ISO 9000 quality management practices indicated positive relationship with perceived business performance of contractors in Malaysia, and
these are management responsibility, product realisation, and resource management. This study concluded that there are differences in terms of perceived business performance, management responsibility, resource
management, product realisation, and measurement, analysis and improvement between ISO 9000 certified contractors and non-ISO 9000 certified contractors. The constructs in the ISO 9000 Quality Management System are found to be
associated with perceived business performance of contractors.