ISO 9001 Identification Paper

The benefits of ISO certifications regarding international trade has been long discussed issue in both empirical and theoretical literature. The great majority of empirical studies agreed on trade enhancing effects of ISO 9001 certifications through various channels (Clougherty & Grajek, 2008; Potoski & Prakash, 2009; Cao & Prakash, 2011; Blind & Mangelsdorf, 2012; Gönel, et al., 2013; Clougherty & Grajek, 2014). In addition to those country level studies, industry and firm-level studies also show that the impact of ISO 9001 certifications on firms’ sales growth, productivity enhancements, size, competitiveness and product innovation is positive (Terlaak & King, 2006; Goedhuys & Sleuwaegen, 2013; Ullah, et al., 2014; Terziovski & Guerrero, 2014; Su, et al., 2015). In addition to empirical studies, Hudson & Jones (2003) theoretically show the impact of international standards on the level of quality perceptions around the problem of information signaling of new entrant firms. Considering firms’ problems in developing countries where

However, in order common language effect to be worked, both sides of international traders should adopt certifications. In short, both sided compliance principles should be satisfied. Then the cross-border trade enhanced through efficient communication and similar technical knowledge between foreign buyers and domestic sellers. The same applies to input supplier and final good producer, regardless of being at the home or foreign nation. However, testing empirically the common language effect which leads a decrease in communication frictions is difficult. Interacting host and home nation’s number of ISO certifications, Clougherty & Grajek (2014) argue that common language effect is a robust channel that ISO certifications positively affect international