The Determinants of International Certification among Manufacturing Firms in Pakistan

This study investigates the factors that influence international certification among Pakistani manufacturing firms. About a third of such firms in Pakistan hold one or more certificates related to management or technical processes. The existing literature suggests that this demand is influenced by...

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Main Authors: Farrukh Iqbal, Aadil Nakhoda
Format: Article
Language:English
Published: Lahore School of Economics 2024-11-01
Series:The Lahore Journal of Business
Subjects:
Online Access:https://journals.lahoreschool.edu.pk/LJB/LJB/article/view/114
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author Farrukh Iqbal
Aadil Nakhoda
author_facet Farrukh Iqbal
Aadil Nakhoda
author_sort Farrukh Iqbal
collection DOAJ
description This study investigates the factors that influence international certification among Pakistani manufacturing firms. About a third of such firms in Pakistan hold one or more certificates related to management or technical processes. The existing literature suggests that this demand is influenced by factors such as sector of activity, market competition, human capital and information environment, ownership type, and available resources. By analyzing a large, random sample of Pakistani manufacturing firms, we find strong correlations between these factors and international certification. We also discover that owner attitude, an aspect overlooked in previous studies, plays a role in the certification decision. While our statistical model does not fully explain the determinants of certification for small firms, we do find that certification is associated with increased profitability among small enterprises. This implies that small enterprise development agencies can improve the effectiveness of their programs by considering certification status as an additional criterion for allocating support funds. The results of our study have policy implications related to exporting, staff training, diffusion of firm ownership, and enhanced information access facilitated by modern technology tools.
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publishDate 2024-11-01
publisher Lahore School of Economics
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series The Lahore Journal of Business
spelling doaj-art-c38e408e370a466aabc529b2df169f0f2025-08-20T02:57:28ZengLahore School of EconomicsThe Lahore Journal of Business2223-00252791-31392024-11-01112The Determinants of International Certification among Manufacturing Firms in PakistanFarrukh IqbalAadil Nakhoda This study investigates the factors that influence international certification among Pakistani manufacturing firms. About a third of such firms in Pakistan hold one or more certificates related to management or technical processes. The existing literature suggests that this demand is influenced by factors such as sector of activity, market competition, human capital and information environment, ownership type, and available resources. By analyzing a large, random sample of Pakistani manufacturing firms, we find strong correlations between these factors and international certification. We also discover that owner attitude, an aspect overlooked in previous studies, plays a role in the certification decision. While our statistical model does not fully explain the determinants of certification for small firms, we do find that certification is associated with increased profitability among small enterprises. This implies that small enterprise development agencies can improve the effectiveness of their programs by considering certification status as an additional criterion for allocating support funds. The results of our study have policy implications related to exporting, staff training, diffusion of firm ownership, and enhanced information access facilitated by modern technology tools. https://journals.lahoreschool.edu.pk/LJB/LJB/article/view/114International certificationSME policyproduct market competitiontraininginformation environmentownership diffusion
spellingShingle Farrukh Iqbal
Aadil Nakhoda
The Determinants of International Certification among Manufacturing Firms in Pakistan
The Lahore Journal of Business
International certification
SME policy
product market competition
training
information environment
ownership diffusion
title The Determinants of International Certification among Manufacturing Firms in Pakistan
title_full The Determinants of International Certification among Manufacturing Firms in Pakistan
title_fullStr The Determinants of International Certification among Manufacturing Firms in Pakistan
title_full_unstemmed The Determinants of International Certification among Manufacturing Firms in Pakistan
title_short The Determinants of International Certification among Manufacturing Firms in Pakistan
title_sort determinants of international certification among manufacturing firms in pakistan
topic International certification
SME policy
product market competition
training
information environment
ownership diffusion
url https://journals.lahoreschool.edu.pk/LJB/LJB/article/view/114
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