Effects of ISO 9001 Certification and KAAE on Performance of Jordanian Firms

This research investigates the effects of ISO 9001 certification and King Abdullah II Award for Excellence (KAAE) on Jordanian firm.s performance. Four scale measures of firm.s performance were considered, including quality outcomes, customer satisfaction, business performance, and innovation. ISO 9001 certification effect on performance measures was investigated in 130 Jordanian firms from both service (52 %) and industrial (48%) sectors. While, KAAE effect on performance measures was surveyed in twenty four firms. Structural Equation Modeling (SEM) was used to analyze the measurement and structural models for ISO 9001 certification, whereas t-test was used to test the hypotheses related to KAAE. The results showed that the ISO 9001 certification has significant effects on quality outcomes, customer satisfaction and business performance; however, it has no significant effect on innovation. In addition, the KAAE positively affects quality outcomes customer satisfaction, business performance, and innovation. In conclusion, ISO 9001 requirements and guidelines improve the efficiency and effectiveness of quality management systems in Jordanian firms, but they fail to motivate innovation. In order to achieve performance excellence, this research encourages Jordanian firms to participate in KAAE or include its guidelines in their quality management systems