Do multiple certifications leverage firm performance? A dynamic approach

Abstract

In a dynamic environment where organizations are continuously exposed to change, being robust, strong and competitive is a major managerial task. The aim of this article is to study the impacts of adopting multiple certifications on firm performance, by considering the dynamics involved in this process. A sample of 247 Portuguese firms that had adopted multiple certifications by 2015 encompassing the ISO 9001, ISO 14001 and OHSAS 18001 standards were studied by means of a longitudinal analysis. Their historical certification records were matched with their performance indicators to create a panel dataset from 2007 to 2015. The research into the causal effects of the certifications on firm performance was based on a panel dynamic approach, namely the system generalized method of moments. The following three combinations show consistent leverage on firm performance: ISO 9001, ISO 9001 + ISO 14001 and ISO 9001 + ISO 14001 + OHSAS 18001. Being ISO 9001 the common factor of these combinations and also the first standard adopted by most firms, results suggest that it might be a relevant driver towards improving firm performance. This research reveals new insights in this field by analyzing a changing environment where firms can be expected to certify dynamically according to the requirements of different standards.