Where in the Supply Chain Network does ISO 9001 improve firm productivity

Abstract Operations management scholars have long suggested that processes play a critical role in a firm's competitive advantage. ISO 9001, in particular, provides a standard to improve the effectiveness and efficiency of processes. Similarly, network researchers argue that a firm's embedded position in the network plays a critical role in their competitiveness. Taking a network perspective, this research investigates if the productivity benefits of ISO 9001 depends, in part, on the network topology that connects the firm to their network partners. Using customer disclosure data from COMPUSTAT and ISO 9001, this study finds that network closure, industry homophily, and network centrality each moderate the effect of ISO 9001 on firm productivity. We find that ISO 9001 is more effective when firms are well embedded in the supply chain network and least effective when they are isolated. The overall results provide managers guidance on the strategic benefit of network position with regards to ISO 9001 effectiveness.