ISO 9000 certification and construction project performance: The Malaysian experience

PurposeThis paper explores the relationship between an ISO 9000 certified quality management system (QMS) and elements of performance in construction project environments.Design/methodology/approachA survey based approach is used to collect data from project managers working in the Malaysian construction sector in both ISO 9000 certified and non-certified organisations. Three elements of performance are explored: project management (PM) practices, financial management (FM) practices and Project Success. The Project Management Performance Assessment model (PMPA) (Bryde, 2003) is used as the framework for assessing PM Practices. 336 completed questionnaires are analysed, with a group of 73 being from ISO 9000 certified companies (a response rate of 48.3%) and a group of 262 being from non-certified companies (response rate = 32.6%). MANOVA are used to explore differences in levels of performance between the two groups.FindingsOverall there is significance difference in mean scores at the 5% level in respect of each of the PM and FM Practice elements of performance, indicating that ISO 9000 certified companies have enhanced levels of performance in their project environments compared to those in non-certified companies. The two exceptions are the PM Practice related to establishing partnerships and managing resources and the FM Practice related to allowing for inflation and price escalations. The results also indicate that ISO 9000 certification has a positive moderating effect on the casual relationship between PM Practices and Project Success. Based on the survey results a Project Management Performance Assessment for Construction (PMPAC) model is developed, which extends the PMPA to include performance enablers linked to financial management activities.Research limitations/implicationsThe survey focuses on the construction sector in Malaysia and further work is required to see if the findings are applicable to other countries and also to other business sectors beyond the construction sector.Originality/valueThe research reported in this paper is original in that prior research into the link of ISO 9000 certification and dimensions of organizational performance has not explicitly focused on project environments. The research findings provide evidence that those seeking to enhance their project performance could gain benefits from developing a QMS and seeking ISO 9000 accreditation. However the finding also indicate that an approach to performance management based solely on establishing a certified QMS may have its limitations in terms of establishing processes for managing the relationships on a project through partnership approaches and in dealing with uncertainty in the external environment, such as price fluctuations. The PMPAC model presented in this paper provides a framework for those working in construction project environments to ensure their project management systems incorporate the key activities that enable better performance.

Research Highlights► ISO 9000 certified companies have enhanced project performance. ► Exceptions relate to the areas of partnerships and managing resources. ► ISO 9000 moderates the relationship between practices and project success.