Is certification to 18001 linked with improvements in operational performance? This 2014 study suggests yes.
Moreover, the effects are most pronounced for companies with high interactive complexity and tighter coupling (as per Perrow’s Normal Accident Theory).
Mark Pagell and colleagues analysed data from 211 US listed firms.
Summary posted next week.
Findings:
· “OHSAS 18001 leads to significant increases in abnormal operational performance in terms of safety, sales, labor productivity, and profitability”
· “OHSAS certification leads to increased abnormal safety performance for the firms in the sample, even though they had above average safety performance, relative to their industry norm, prior to certification”
· “compared to similar firms, without certification, these firms also saw increased abnormal economic performance”
· “The results are unequivocal in showing that OHSAS 18001 certification increased both the economic and safety components of abnormal operational performance”
· Further, the majority of direct abnormal increase in sales in this sample occurred the year after certification, not before. So, “Obtaining the actual certification seems to be driving the increase in abnormal sales, providing support to the proposition that firms use OHSAS certification as a signaling or legitimation tool”
· Results indicated that gross trade-offs between production and safety weren’t foregone conclusions, as certified organisations were able to improve economic and operational performance concomitantly
Interestingly, certification was found to be more effective for organisations with higher interactive complexity and tighter coupled production processes.
Authors: Lo, C. K., Pagell, M., Fan, D., Wiengarten, F., & Yeung, A. C. (2014). OHSAS 18001 certification and operating performance: The role of complexity and coupling. Journal of Operations Management, 32(5), 268-280.
Study link: https://ira.lib.polyu.edu.hk/bitstream/10397/12203/1/JOM_OHSAS_18001_Certification.pdf
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