Impact Of ISO 9001 Certification On Financial Performance Of Commercial State Corporations In Kenya
Abstract
Most commercial entities in a quest to improve their service delivery and profitability
have adopted several management improvement programs which have been developed
over the years. Several standards which include but not limited to ISO have been adopted
by organizations in order to improve product/service quality which in turn is expected to
lead to overall improvement of organizational performance. The objective of this study
was to examine the impact ISO certification on financial performance of commercial
state corporations in Kenya.
The study used a cross sectional survey design incorporating causal-comparative
research. Causal-comparative research or ‘expost facto’ research means that at least two
different groups are compared on the dependent variable because the independent
variable has already occurred and cannot be manipulated. The Population of the study
included all commercial state corporations in Kenya. Most of the audited annual reports
were obtained from the office of the Auditor General as this is the office mandated to
audit all financial statements of State Corporations. In order to analyze the impact of ISO
9001 certification on financial performance of commercial state corporations, collected
data were analyzed using descriptive statistics that is use of mean, standard deviation and
percentages. T -test a special case of ANOVA was used as this technique is used to test
whether there are significant differences between the means of two samples at a
predetermined probability level.
The study concluded that ISO 9001 certification led to improved return on asset of
commercial state corporations. The results from study concluded that sales growth in the
commercial state corporation registered an increase with the adoption of ISO 9001
certification. The study concluded that ISO 9001 certification had a positive impact on
the NPM of the commercial state corporation which also registered improvement. In
conclusion the financial performance of ISO 9001 certified commercial state corporations
were superior to those of non certified counterparts. Therefore ISO 9001 certification led
to positive influence of financial performance of the commercial state corporations in
Kenya. The study recommend that commercial state corporations need to effectively
implement ISO 9001 as it had been found to influence financial performance and can lead
to long-term success and achievement of organizational competitiveness
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of NairobiPublisher
University of Nairobi School of Business