An Empirical Comparison of Maquiladoras with Mexican Service Firms regarding Compliance to the International Quality Standard ISO 9000

By Feinberg, Martin; Rydl, Lester et al. | International Journal of Management, June 2003 | Go to article overview

An Empirical Comparison of Maquiladoras with Mexican Service Firms regarding Compliance to the International Quality Standard ISO 9000


Feinberg, Martin, Rydl, Lester, Vinaja, Roberto, Flores, Oscar, International Journal of Management


Maquiladoras are Mexican assembly plants located on the U.S.-Mexican border in which the engineering, marketing and technical functions are kept in the U.S. and the labor assembly work is performed in Mexico. This paper provides an empirical comparison of compliance to the international quality standard ISO 9000 in maquiladoras and in Mexican service firms. Data analysis revealed that 93% of the maquiladoras are ISO 9000 compliant compared to only 26% of the service firms. The results indicated that there are several important differences in the perceptions of maquiladora managers and those of service managers.

Introduction

Maquiladoras are Mexican assembly plants located on the Mexican side of the United States-Mexico border. A maquiladora plant is a labor-intensive plant in which the labor assembly work is performed in Mexico, whereas the technical, marketing and engineering functions are kept in the United States. The term maquiladora or maquila derives from the Spanish verb "maquilar" which historically refers to the milling of wheat into flour for which the farmer would compensate the miller with a portion of the wheat. The modem meaning of the word indicates the assembly or packaging performed by someone other than the original manufacturer.

The genesis of the maquiladora plant is to take advantage of a special tax arrangement, which allows materials to be transferred into and back out of Mexico in a type of consignment program without having to pay duties on the materials. Import duties are paid only on the foreign value-added. The maquiladora program allows for 100% foreign ownership of any maquiladora operation. Hence, the benefits for their U.S. owners is that the maquiladoras allow the U.S. firms to take advantage of relatively inexpensive Mexican labor while enjoying the close proximity to the U.S. market.

The maquiladora program began in 1966 in North and South Baja California, Mexico and the Mexican state of Chihuahua. The first large plant opened in 1967 under the RCA name in Ciudad Juarez, Mexico just across from El Paso, Texas. It is important to note that 69% of these plants are located within one to 30 miles from the U.S.-Mexico border.

The number of maquiladoras almost doubled between 1991 and 2000, increasing from 2,000 to 3,800. The employment in maquiladoras more than doubled during this period from 550,000 to 1.3 million. However in 2001, over 100 maquiladoras closed and 200,000 jobs were eliminated. This tremendous growth of the maquiladora industry, spurred by the passage of NAFTA, makes it important to analyze ISO 9000 compliance in Mexico.

This paper provides an empirical comparison of the compliance of maquiladoras and Mexican service firms to the standards established by the International Standards Organization known as ISO 9000. The Mexican service firms are not involved in either manufacturing or assembly operations. The Mexican service firms sampled in this study are mostly custom brokers or banks. In this study, all of the 50 Mexican service firms are located in northern Mexico. There have been few, if any, empirical studies conducted on this topic. ISO 9000 is a series of three international standards and guidelines for business management and quality assurance. These standards were first published in 1987 and revised in 1994. ISO 9000 standards do not apply to a specific product, but provide a business model for organizations that design, produce, or test products. Hence the standards can be utilized, by both the manufacturing sector and the service sector.

The ISO 9000 compliance process requires the total commitment, input, and acceptance of all employees. Specifically, this commitment needs to be concentrated in the areas of education, registration and gap analysis, registrar selection, action plans and processes, and registrar audit. The ISO 9000 standards define the quality systems applicable to design, development, production, installation, service, final inspection, and test. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

An Empirical Comparison of Maquiladoras with Mexican Service Firms regarding Compliance to the International Quality Standard ISO 9000
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.