The Lahore Journal
of Business

Lahore Journal of Business

(HEC recognized journal in “Y” category)

The Lahore Journal of Business is aimed at providing a specialized forum for dissemination of qualitative and quantitative research in various areas of business administration. The LJB invites researchers, policy makers and analysts to submit original theoretical and empirical papers that explore and contribute to the understanding of various areas in the business domain. The Journal aims at bringing together state-of-art research findings, particularly from emerging markets, in various business disciplines including (but not limited to) accounting, banking, management, marketing, finance, investments, human resource management and organizational behavior.

The Determinants of International Certification among Manufacturing Firms in Pakistan

Submitted

November 22, 2023

Accepted

November 22, 2023

Accepted

November 22, 2023

Abstract

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

Keywords

International certification

SME policy

product market competition

training

information environment

ownership diffusion.

This work is licensed under LJB.

Iqbal, F., & Nakhoda, A. (2024). The Determinants of International Certification
among Manufacturing Firms in Pakistan. The Lahore Journal of Business, 11(2), 1-28.

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