Associate Professor of Marketing
Global Diffusion ; Management Practice ; ISO 9000 ; ISO 14000 ; Spatiotemporal Analysis ; Bayesian Estimation ;
Journal Article | Management Science | 53 | March 2007
A Spatio-temporal Analysis of Global Diffusion of ISO 9000 and ISO 14000 Certification
The authors study the global diffusion of ISO 9000 and ISO 14000 certification using a network diffusion framework. The authors start by investigating the presence and nature of contagion effects by defining alternative cross-country networks and testing their relative strength.Second, the authors study how the rate of diffusion differs between the two standards and between early- and later-adopting countries. Third, the authors identify which countries had more influence on diffusion than others. Empirically, the authors build a diffusion model which includes several possible cross-country contagion effects and then use Bayesian methods for estimation and model selection.Using country by year data for 56 countries and nine years, the authors find that accounting for cross-country influences improves both the fit and the prediction accuracy of our models. However, the specific cross-country contagion mechanism is different across the two standards. Diffusion of ISO 9000 is driven primarily by geography and bilateral trade relations, whereas that of ISO 14000 is driven primarily by geography and cultural similarity.The authors also find that the diffusion rate of ISO standards is higher for later-adopting countries and for the later ISO 14000 standard. The authors discuss several implications of their findings for the global diffusion of management standards.