The need for firms to undertake ISO certification cannot be underrated. This can be associated with raised competition among firms operating in the same field. This makes it necessary for the companies to offer exceptional customer services in order to be sustainable. From this study it will be seen that some firms, which operate in the UAE such as Etisalat, Dubai Security Group, Qatar Airways Cargo, KG International and Trevor Bundus have significantly benefited from ISO 9000 certification. Consequently, these firms have been able to enjoy increased customer loyalty as they have moved from reactive to proactive, preventive organizations. Generally, the main motivating factor for firms operating in the UAE to implement ISO 9000 certification can be linked with internal issue, such as human resources improvement and improving product quality.
1. The need for firms to undertake ISO certification cannot be underrated.
2. The International Organization of Standardization (ISO), which is a global federation of more than 120 national standardization organizations, attempt to enhance standardization and facilitating the exchange of goods and services globally and cooperation in fields like scientific, technological, intellectual and economic activities (Zaramdini, 2007).
3. Among all the Arab countries, the UAE has the largest number of certified firms. According to a survey carried out in 2004, it was estimated that about 900 companies had been certified as compared to other countries such as Egypt, Saudi Arabia and Morocco which had 810, 394 and 296 certificates respectively.
4. From the view point of qualitative financial performance, many of the firms that have implemented ISO 9001: 2000 have been able to enjoy increased customer loyalty as they have moved from reactive to proactive, preventive organizations (Zaramdini, 2007).
5. The main motivating factor for firms operating in the UAE to implement ISO 9000 certification can be linked with internal issues. Some of these factors include human resources improvement, improving product quality among other factors.
6. ISO certification helps to reduce the operational costs of any given firm, thus allowing the company to invest heavily in other crucial areas such as the human resources department, research and development among others.
Introduction
In the recent times, competition between companies operating in the same field has significantly increased. This is attributable to raised technological developments, reduced barriers of entry among other notable aspects. Consequently, vast amount of pressure has been placed on companies by competitors and consumers alike to constantly innovate in new products as well as upgrading the quality of the existing services and goods. In this regard, the International Organization of Standardization (ISO), which is a global federation of more than 120 national standardization organizations, attempt to enhance standardization and facilitating the exchange of goods and services across the globe and cooperation in fields like scientific, technological, intellectual and economic activities. Zaramdini (2007) notes that the ISO 9000 series of quality standards has been existing in the market place for at least one decade and serves as the guideline for any given organization that is ready to improve or start its QMS (Quality Management System). It is worth noting when a firm attains the ISO 9a001: 2000 certificate, their business partners become more confident in its quality management systems (Zaramdini, 2007). As 2007, ISO 9000 standards have been adopted in more than 175 countries and have continuously gained popularity in notable regions such as Africa, Asia, Asia Pacific and Latin American regions (Jabnoun, 2003). The paper will critically evaluate the impact of ISO 9000 standards on Etisalat, a telecommunication provider in UAE. The paper will also indicate how the ISO 9000 standards can benefit other organizations operating in the UAE.
Critical Analysis
As indicated above, the need for organizations to attain ISO 9000 standards in order to attain sustainable competitive advantage in the area they operate cannot be underrated. One of the companies that have been able to attain these standards is Etisalat. Established in 1976, the firm has been able to build up one of the modern telecom infrastructure and a reliable as well as an innovative operator in UAE. The firm offers modern services, which have served to position the United Arab Emirates as one of the highly advanced regions as far as telecommunication services are concerned. Some of the services offered by the firm include 3G, WAP, Asynchronous Transfer Mode,VSAT MMS, ISDN and BlackBerry Push To Talk among others.
Over the years, the firm has faced intensive competition from foreign telecommunication providers, due to reduced barriers of entry among other incentives offered to foreign companies by the UAE Government. As a result, the firm implemented ISO 9000:2000, a version which is more customer-oriented as compared to the old version. Despite the many obstacles faced when implementing ISO 9000:2000 standards, such as lack of top training method related to quality, the organizational culture and difficult in co-operation from some managers, there are some notable reasons why the firm implemented these standards. Using Duncan multiple comparison test with alpha value of 0.05, four issues were identified as the main reason for standardization as it shown in the table below.
|
Reason |
N |
1 |
2 |
3 |
4 |
|
3. We implement quality analysis because the competitors have implemented |
92 |
3.4022 |
|||
|
4. The implementation of quality analysis is a response to the requirements of suppliers or public organization |
92 |
4.4130 |
|||
|
1. Customer requirements are the reason for implementation of ISO 9000 |
5.2065 |
||||
|
2. Top management initiative is the reason for implementation of ISO 9000 |
5.7826 |
(Jabnoun, 2003)
From the table above, the implementation of ISO 9000 certification due to competitors, which has a mean of less than 4, cannot be considered. This is because there are not very many telecommunication firms operating in the UAE.
Practical Implications
From this article, which attempts to analyze the benefits and motives of ISO 9001:2000 certification to companies operating in the UAE region, it is clear that the benefits significantly surpasses the initial cost and challenges of implementation. It is notable that among all the Arab countries, the UAE has the largest number of certified firms. According to a survey carried out in 2004, it was estimated that about 900 companies had been certified as compared to other countries such as Egypt, Saudi Arabia and Morocco, which had 810, 394 and 296 certificates respectively. Despite having one of the largest oil reserves approximated to be at least 10% as well as diversifying its economies to other areas such as trade and tourism, little research has been conducted on the way the firms operating in the UAE region can benefit from ISO 9000 Standards. There are various motives, which make firms operating in the UAE region to undertake the ISO 9000 certification. Some of these factors include improvement of communication between employees, enhancing the quality system of an organization, improving customer’s satisfaction levels and reducing the operational costs of an organization in the long-run and among other factors (Zaramdini, 2007).
Benefits of Certification
There are some benefits, which can be obtained by organizations operating in the UAE due to ISO 9000 certification. For instance, from the view point of qualitative financial performance many of the firms that have implemented ISO 9001: 2000, such as Dubai Security Group, Qatar Airways Cargo, KG International and Trevor Bundus among others have been able to enjoy increased customer loyalty as they have been able to move from reactive to proactive, preventive organizations. As a result of ISO 9001: 2000 certification, Qatar Airways Cargo has been able to reduce its operational cost by more than 20% for the last three years. Consequently, the firm has remained profitable, with an estimated $ 4.0 billion made in 2011, and estimated to grow by 56% by year 2015. For small companies, such as Al Ghazal Transport ISO certification will offer them a blue print to advertise themselves both in the UAE and abroad.
Learning Reflections
From the above study, it is now evident that for any organization to succeed both in the short and long-run, there is an urgent need to undertake ISO 9000 certification. It is also evident that main motivating factor for firms operating in the UAE to implement ISO 9000 certification can be linked with internal issues. Some of these factors include human resources improvement, improving product quality among other factors (Jabnoun, 2003).
Conclusion
Generally, ISO certification helps to reduce the operational costs of any given firm, thus allowing the company to invest heavily in other crucial areas such as the human resources department, research and development among others. By doing this, profits are improved, thus making it possible for a firm to attract investors.