The Effects of ISO 9001 Quality Management System on Innovation and Management Capacities in the Malaysian Furniture Sector

Abstract

Although the ISO 9001 quality management system is often perceived to be a marketing tool within the manufacturing industry, its implications on the innovation and management capacities of the furniture industry remain unknown. A survey of furniture manufacturers in Malaysia revealed that lack of innovation and ineffective management were among the main problems faced within the industry. Using a structured questionnaire, a survey of the ISO-certified manufacturers revealed that the ISO 9001 quality management system has a positive correlation with process innovation but not product innovation. Therefore, ISO certification would be beneficial for productivity improvement and identifying cost-cutting measures in furniture manufacturing enterprises. On the other hand, ISO certification has a significant influence on the management of furniture enterprises, especially with regards to systematic decision-making and boosting the level of professionalism. Therefore, ISO certification may be a useful tool to enhance management competency and also improve productivity within the furniture manufacturing sector.