Performance Measurement In ISO And Non-ISO Companies : A Comparative Study

This is a study, which aims to identify the performance measurement generally used in ISO-certified and non-IS0 certified companies. Using case study approach, the specific objective is to see wether or not the measures differ. There are five parts dimensions that have been studied. They are Relative Importance of Non-Financial Indicator (NFI) to Financial Indicator (FI) in Relation to Performance Dimension, Frequency of NFI Usage, Performance Attained During The Period, Perceived Importance of Performance and Assessment of Importance of Quality Criteria. Data was collected using questionnaire mailed to the respondents. The respondents are large companies members of the Malaysian International Chamber of Commerce & Industry (MICCI), which manufactures semiconductor. Three of the companies have obtained ISO-certification and three have not. Descriptive Analysis was used to analyze the data. The findings of the study showed that there were no notable differences exist in the five dimensions studied between ISO and non-ISO-certified companies. The findings of this study shows that ISO certification does not contribute to the existence of differences in usage of financial indicator (FI) and NFI. This is because the firms involved in the study are members of the MICCI and have substantial business internationally. Thus, this position have generated the need to use the most suitable and updated set of performance measures suitable to their international business needs. ISO is more used as a marketing tool