Worldwide Diffusion and Shift of ISO standards from 1995 to 2005

Kitae Park
Department of Sociology, Korea University(kitae80@korea.ac.kr)

1

Abstract
This paper explores Worldwide Diffusion and Shift of ISO standards are basedon world culture perspective and other perspective. Debating on diffusion and shift thatis based on neo-institutional perspective, world culture performs as an important factor.
As a tentative conclusion, the author presents (1) nations that are exposed more andlonger may adopt ISO certifications (ISO 9000, ISO 9001:2000 and ISO 14001) (2)looking into adoption of ISO 14001 through learning effect and resource based view,ISO 9000 series adopters would take more ISO 14001 certification. In conclusion, when
researchers explore diffusion, it is good for them to consider world culture and globalnorm. And as investigator studies shift of standards, they should observe changing
procedure from efficiency to legitimacy.

Key Words: ISO certification, Diffusion, Shift, Global pressure, Global norm2

INTRODUCTION

Since ISO (International Organization for Standardization) was founded in 1947,
various certifications were enacted and introduced by ISO. Among many kinds ofstandards, ISO 9000 series and ISO 14000 series are the most popular and worldwideadopted certifications.
Though I will present details in later part, 9000 series is called to QMS (QualityManagement System) to guarantee standardized manufacturing process of adopted firms.
On the other hands, 14000 series assures that firms try to protect natural environment asfollowing guideline. So ISO 14000 series is called as EMS (EnvironmentalManagement system). In 2005, a number of 9001:2000 adopters are 776,608 in 161
nations and actors who are certificated by accreditation and certification bodies on
14001 are 111,162 in 138 nations (ISO 2006).
In much previous research, scholars explored that diffusion mechanism of ISO
standards which are based on neo-institutional perspective (Guler et al. 2002) and otherperspectives (Quasi et al. 2002; Rao et al. 1997; Shannon et al. 1999) within interorganization or inter-nations. Even though treating multidimensional actors andemphasizing role equivalence in world trade, but scholars did not display descriptive
conditions of each nations, and specific distributed factors.
Second, conventional studies inquired diffusion of just one standard series ofISO 9000 (Guler et al. 2002) and showed transferring reasons in each firm from 9000
series to 14000 series (Rhim et al. 2003; Jung 1997).
Therefore, in this paper, I will show descriptive worldwide diffusion trends andconditions shifted from QMS to EMS for overcoming limitations of former research on

3empirical method.

DIFFUSION

As noted earlier, ISO 9000 and 14000 series have overspread since 1987 and1996 when they were enacted. Figure 1 reveals increasing of a number of adopting
nations from 1995 to 2005. There is smooth rising of ISO 9000 series, but ISO 14001
has lifted up very sharply. In ISO 9000 case, nations which have an ability to take ISO
certifications almost got it caused as a periodical gap between terms of enacted andinformation gathering. On the other hand, ISO 14001 series has adopted that firms toenhance their legitimacy (Meyer and Rowan 1977) in a global context that regime ofenvironmental protection has increased (Frank 1997; Frank et al. 2000)
180160

140

120

100

80

60

40

2001995

1996

1997

1998

1999
ISO 9000

2000
ISO 9001:2000

2001

2002

2003

2004

2005

ISO 14001

Figure 1. A number of ISO adoption nations
In detail, a number of ISO 9000 adopt nation gradually has increased to 161.

4

Furthermore, a number of ISO 14001 adopt nation has extended from 1995 to 2005;
from 19 countries to 138 countries. It means that ISO certifications are overspread allover the world. In 1987 when ISO 9000 was enacted first as a BS 5750(Corbett andKirsch 2001), its influence was limited UK and Western Europe. But few years later,other continental countries, even Africa, adopt it competitively. As ISO 9000 series wassubstituted to ISO 9001:2000, showing decline of nations temporarily. But there isrising phase after substitution is over.
100%

80%

60%

40%

20%

0%

1993.1 1993.9 1994.6 1995.3 1995.1 1996.1 1997.1 1998.1 1999.1 2000.1 2001.1 2002.1 2003.1 2004.1 2005.1
아프리카/서아시아

유럽중남미북미극동

호주/뉴질랜드

Figure 2. Worldwide distribution of ISO 9000 and 9001:2000(1993-2003 ISO 9000 ; 2004-2005 ISO 9001:2000)
Figure 2 shows regional distribution of ISO 9000. Proportion of Europe isgradually decreasing, but Asian proportion increases continuously. On other words,decline of proportion of Europe means relative expansion of other regions andworldwide diffusion toward other regions. Perhaps, these conditions involved ineconomic development of other regions and diffusion of norm that firm should concern5efficiency of performance, quality of its product and taken-for-granted legitimacy thatcorporation certified through authorized bodies.
100%

80%60%

40%20%0%

1995.12

1996.121997.12

1998.12

아프리카/서아시아

1999.12

2000.12유럽(영국 제외)중남미

2001.12북미

2002.12극동

2003.122004.122005.12호주/뉴질랜드

Figure 3. Worldwide distribution of ISO 14001(except U.K.)
Figure 3 also shows worldwide distribution of ISO 14001. Possession ofEurope and Asia in proportion is very similar since 1997, means that not decline ofEuropean firms, but extent of Asian companies. As noted earlier, expansion of ISO14001 series means firm has concerned global pressure that environment should beprotected and firm intent to sustainable development (Frank et al. 2000).
Guler et al. (2002) suggest hypotheses that emphasize presence of coercive
organizations, effects of trade and role equivalence. Nevertheless, authors did not
mention influence of indirect tie that is measured participation of internationalorganization (IGO; International Governmental Organization, INGO; International NonGovernmental Organization) that means norm provider and level of national openness.

6Therefore, I will propose hypotheses beyond their limitations. First, much neoinstitutional research emphasize role of IGO and INGO (Boli and Thomas 1997;
Schofer and Meyer 2005; Paxton et al. 2006; Hafner-Burton and Tsutsui 2005; Frankand Mceneaney 1999). A number of memberships of international organization
symbolize sensitive on global norm (Schofer and Meyer 2005; Paxton et al. 2006;
Hafner-Burton and Tsutsui 2005; Frank and Mceneaney 1999). It means that the morememberships of international organizations, norm receptor in individual country may
increase and nation may much concern on global pressure. As following above
description, I put forward first hypothesis.

Hypothesis 1: Country has more memberships of IGO and INGO, it is more likely tohave ISO certifications.

When discussing world culture theory, joining period is an important factor(Boli and Thomas 1997). Since 1947, ISO founded, almost countries join it (ISO 2006).
As ISO chases world’s standardization, if country maintain its membership longer,country more sensitive guideline of ISO, and effects of membership operate both ISO
9000 and ISO 14001 series as a pressure. Therefore, I would like to propose second
hypothesis.

Hypothesis 2: Country may maintain longer ISO membership than other country, it ismore likely to have ISO certifications.

When looking over a set of adopting nations, list includes some unexpectedly

7

nations include some exclusive countries, poorest countries and marginal nations. For
instance, North Korea (under N.K.) is included in absolutely closed countries and isknown that the most closed country against the world. According to ITU (InternationalTelecommunication Union), North Korea did not report its a number of internet users in2000 and 2005. In spite of those facts, in 2005, N.K. has 939 certified firms throughISO 9001:2000 and 97 corporations that adopt ISO 14001 (ISO 2006). Second, African
poorest countries that almost population suffers a famine were reported. Including
Ethiopia, lots of African countries failed to treat their poverty but have adopted ISO
standards. Last, unknown countries adopt ISO certifications are discovered. Guyana,locates in north Latin America, is very marginal nation in world. But it has 8 ISO adopt
firms in 2005. As noted earlier, there are many cases that nations take certification
despite of their internal political and economic context. In other words, marginal actor
also must response to global pressure like almost countries have a governmental
homepage.
And as these marginal countries almost take ISO standard later 90s, reasonsand mechanisms of adoption are different from early adopter, developed countries(Raminez et al. 1997; Strang 1990).

Especially, peripheral nations has adopted

continuous since 1998 (ISO 2002). It means that early adopters take it to improve theirefficiency, but later adopters accept it inevitable because of global pressure. Early stageof adoption, ISO certifications affect export through quality improvement. Yet, laterstage of adoption, it is required as a qualifications in a world trade. Therefore, marginal
nations try to be certified by accreditation and certification bodies and I would propose
hypothesis 3.

8Hypothesis 3: The higher proportion that adoption rate of trade counterparts, the more
adopt ISO certifications in marginal nations after 1997.

SHIFT

In this chapter, I explore shift of ISO certification from 9000 to 14001. Shiftstarted in 1996 when 14001 enacted, and this shift may involve in changing norms fromefficiency to legitimacy. It means that ISO 9000 is called QMS pursue enhance of
manufacturing system and quality of product. On the other hands, even though ISO
14001 chases environmental protection that even obstructs efficiency and development,
nations try to be certified. Perhaps, this shift is explained by legitimacy is empowered
than efficiency.
900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0
1995

1996

1997

1998

1999

2000

9000

9001:2000

2001

2002

2003

2004

2005

14001

Figure 4. A number of ISO adoption firms
Figure 4 shows annual sum of each certifications of world. In detail, ISO 9000

9

of annual increasing rate declines gradually. Second, 9001:2000 raise very sharp that it
is introduced in 2000 first, and firms take it as a substitutional standard. Third, a numberof ISO 14001 adopt firms have expanded continuously.
35000030000

30000025000

25000020000

20000015000
150000

10000
100000

5000

50000

00
2001.12

2002.122003.129001:2000

2004.122005.1214001

Figure 5. up and down conditions of ISO 9001:2000 and 14001

Figure 5 shows more detailed than figure 4, and absolute number of ISO
9001:2000 is more than 14001 but an upward tendency it is higher and continuously
than 9001:2000. Especially, although increasing phase of 9001:2000 decline, 14001
series is gradually increase.
Frank et al. (2000) argue that conventional research emphasize domestic factors
to protect environment. And they dissert that to explore environmental norms,
researcher concern with top-down international pressure rather than focus on bottom-up
domestic activities. As debating on world culture theory, the most important factor is atie through INGO and IGO as receptor sites to global norms. On other words, when
individual country has more memberships, its tie with global norms would more be10

intensified. This logic can be applied on environmental section, and the more INGO andIGO on environmental domain, the more global norms that protect environment wouldpenetrate into domestic environmental part. Therefore, norm penetrates domesticity
promote adoption of ISO 14001. As based on above description, 4th hypothesis isproposed.

Hypothesis 4: The country have more environmental INGO and IGO, it is more likely toadopt ISO 14001 than less.

RANKING

ISO 9001:2000

ISO 14001

1

CHINA

143823

JAPAN23466

2

ITALY98028

CHINA12683

3JAPAN53771

SPAIN

8620

4

SPAIN

47445

CANADA

7639

5UK

45612

ITALY

7080

6USA

44270

UK

6055

7

GERMANY

39816

USA

5061

8

INDIA

24660

KOREA, REP. OF.

4955

9

FRANCE

24441

GERMANY

4440

10

AUSTRAILA

16922

SWEDEN

3682

11

HUNGARY

15464

FRNACE

3289

12

KOREA, REP. OF.

14033

CZECH, REP. OF.

2122

13

CZECH, REP. OF.

12743

BRAZIL

2061

14

CANADA

12503

AUSTRAILA

1778

15

SWITZERLAND

12413

INDIA

1698

16

TURKEY

10929

SWITZERLAND

1561

17

POLAND9718

CHINESE TAIPEI

1556

18NETHERLANDS

9160

THAILAND

1120

19BRAZIL

8533

NETHERLANDS

1107

20

ISRAEL7657

HUNGARY

993

Figure 6. List of top 20 adopt nations in 2005
11In figure 6, almost countries overlap. It means that there is correlation between
ISO 9001:2000 and ISO 14001. Rhim et al. (2003) assert that ISO 9000 certification
effects on certificating motivation and process of ISO 14001. As expanding above
statement, nations that gain ISO 9000 certifications take more and easier ISO 14001.
And on organization learning perspective, firms experienced certificating process, theywould repeat it again more easily. Therefore, I would propose hypothesis 5.

Hypothesis 5: Nation has more ISO 9000(ISO 9001:2000), it is more likely to becertified ISO 14001.

TENTATIVE CONCLUSION AND IMPLICATIONS

Debating on diffusion and shift that is based on neo-institutional perspective,
world culture performs as an important factor. In this article, the author proposes somehypotheses that are involved in global norm. To measure global pressure, the author
uses IGO and INGO, ISO membership maintaining period, effect of customer nation,
learning effect.
Therefore, I would present tentative conclusion. First, nations that are exposed
more and longer may adopt ISO certifications (ISO 9000, ISO 9001:2000 and ISO14001). Second, as I look into adoption of ISO 14001 through learning effect andresource based view, ISO 9000 series adopters would take more ISO 14001 certification.
In conclusion, when researchers explore diffusion, it is good for them toconsider world culture and global norm. And as investigator studies shift of standards,
they should observe changing procedure from efficiency to legitimacy, and this shift12could be found on transformation of ISO standard from ISO 9000 via ISO 14001 to ISO
26000. After all, global norm is expected to transfer from efficiency-oriented tolegitimacy-oriented continuously.

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