Title: ISO 9001 effectiveness and financial performance of Bosnian exporters: investigating mediators

Authors: Ensar Mekić; Muhammet Sait Dinc

Addresses: Management Department, International Burch University, Ilidža 71210, Bosnia and Herzegovina ' Department of Human Resource Management, American University of the Middle East, Eqaila, Kuwait

Abstract: Despite the fact that the relationship between quality practices and financial performance has been significantly addressed in managerial literature, few studies investigated mediators in this relationship, and very few of them focused on the ISO 9001 effectiveness. This study aimed at exploring both the relationship and the mediators between ISO 9001 effectiveness and financial performance of the Bosnian exporting companies. Based on the recent literature, a second-order structural equation model was proposed and tested. The empirical data were obtained from a questionnaire of 126 ISO 9001-certified Bosnian exporting companies. Once data were collected, factory data analysis was made in SPSS to purify scales through items' loadings and cronbach's alpha values. Afterwards, the resultant scales were tested for Convergent validity through partial least-square path modelling using Smart PLS 3 software. For confirmatory factor analysis purpose, individual evaluation of the first-order and second-order latent constructs, as well as model fit, was made. Results indicated that total effects of ISO 9001 effectiveness on financial performance were significant and positive, and that organizational learning capability fully mediated this relationship.

Keywords: quality management; ISO 9001; business innovativeness; path modelling; organisational learning capability; financial performance; exporters; mediator.

DOI: 10.1504/EJIM.2021.116704

European Journal of International Management, 2021 Vol.16 No.1, pp.148 - 165

Received: 05 Apr 2018
Accepted: 03 Sep 2018

Published online: 30 Jul 2021 *

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