Analysis of the Effectiveness of Quality Management Systems Guided by ISO 9001 Principles from the BSC Perspectives: Evidence from Korean Small and Medium Companies

The objective of this study is to analyze the effectiveness of quality management systems guided by ISO 9001 principles from the BSC (Balanced Scorecard) perspectives. Evaluation of quality management system based on BSC framework considers both short-term financial performance and nonfinancial performance characteristics, which will foster future financial results. Data collected from Korean small and medium companies with ISO 9001 certifications were analyzed to examine the relationships among BSC perspectives. Structural equation model was used to test research hypotheses. The results of this study reveal that, from the learning and growth perspective, quality management systems do not have direct influence on business performance, which is a part of financial performance. Instead, quality management systems have indirect influence on business performance through the quality performance, a part of internal business perspective, and the customer satisfaction, a part of customer perspective. Implications of this study and future research are also suggested.