International Conference on Sustainable Development December, 2011 W HY DO F IRMS E NGAGE IN Q UALITY M ANAGEMENT S YSTEMS : A N E MPIRICAL I NVESTIGATION OF O RGANIZATIONAL D ECISION I NCENTIVES Vynaryk Veronika PhD student National Research University Higher School of Economics Moscow, Russia

Guru: Walter Shewhart Armand V. Feigenbaum W. Edwards Deming Joseph M. Juran Kaoru Ishikawa) Total Quality Management Mechanisms: Quality Assurance (QA) quality control Quality Improvements (QI)

Plan- defining goals and processes of their achievement Do – processes realization Check – Study the actual results and compare against the expected results to ascertain any differences Act – review and correction “PDCA Cycle” - Plan-Do-Check-Act

Standards ISO 9000 TQM (Total Quality Management) - is an integrative philosophy of management for continuously improving the quality of products and processes International Standard Organization has developed on the basis of TQM conception ISO 9000 standards, which include requirements to the basic elements of quality management system (QMS) Main Russian standards : GOST R ISO 9000:2008; GOST R ISO 9001:2008; GOST R ISO 9004:2008, GOST R ISO 19011:2003

Quality management system ISO process model

* According to The ISO Survey of Certification, 2010 Quantity of the firms, which has certificate ISO 9001 approximately 53 thousand approximately 11 thousand 10,6% from European quantity In Russia In the world By the beginning of 2010 more than 1 million ISO 9000 certificates were given in178 countries

Aim: to find factors, which stimulate firm’s decision to implement QMS ISO 9001 Aims and research actuality IMPORTANT APPLICATION Revealing typical characteristics of the company with QMS ISO 9001 «portrait» Guidelines for the developing countries governments for institutional business environment development to improve quality management Empirical cross-countries research of the relations between firm’s decision to implement QMS ISO 9001 and factors which stimulate this decision

Research object and subject Research object – European and Eastern Asian countries with transitional economies (28 countries in total), which has certified QMS to its correspondence to standard ISO 9001 requirements Research topic – internal and external factors of QMS ISO 9001 certification

Empirical research informational database Joint initiative of the European bank of Reconstruction and Development and the World bank - questioning “The Business Environment Survey” (BEEPS) companies from 27 countries Among companies from Central, Eastern, Southern Europe and Central Asia 9655 companies from 27 countries companies from 29 countries World Development Indicators database of the World Bank GDP per capita. Control variable of country economic development level 3 samples were conducted from the questioning:

Empirical research hypothesis Hypothesis 1 (human resources) the firm which has highly qualified and trained employees and young managing director is more likely to implement QMS ISO Loans availability positively affects decision of a firm to implement QMS ISO Hypothesis 2 (finance) competition at the internal market and orientation to the foreign market motivate a company to implement QMS ISO Hypothesis 3 (market) private pattern of ownership and its high concentration, and also the presence of foreign (co)owner motivates firm to implement QMS ISO 9001 Hypothesis 4 (property type) large industrial companies located in developed countries are more likely to implement QMS ISO 9001 Hypothesis 5 (о предприятии)

Empirical research results. Countries groups 3 country groups: 1. the EU 2. CIS and Mongolia 3. Southern Europe and Turkey Россия Казахстан Монголия Киргизия Таджикистан Узбекистан Азербайджан Грузия Турция Украина Беларусь Эстония Латвия Литва Польша Чехия Словакия Словения Румыния Болгария Македония Албания Сербия Босния Хорватия

«Portraits» of the companies with QMS ISO 9001 EUCIS Sothern Europe medium or large, most likely state company, which has bank loans and is characterized by relatively low level of property concentration. It operates in a country with low economic development level, has big share of employees with higher education, experiences strong pressure from the side of small number of competitors and actively exports its products large or medium state or foreign(fully or partly) industrial company, with low concentration of capital, which has bank loan, exports and imports its products, experiences high pressure from the side of consumers. It has big share of employees with higher education and is located in a country with low level of economic development. large or medium state industrial company, which has bank loan, many employees with higher education and low level of property concentration. This company has the small amount of competitors and experiences strong pressure from the side of consumers, operates in a country with low level of economic development.

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