**4.2 Application of quality standards by SMMEs**

The objective of this paper is to respond to the critical research question that emerged from the research study. In response to the research question, various scholars affirmed a positive relationship between the application of quality standards and business performance. This link between quality and business performance is confirmed by Savino et al., [22, 23] who cited, Colledani and Tolio [17], and Chi Phan et al. [24], who explored the relationship between quality management practices competitive performance in manufacturing companies. Again, Colledani and Tolio [17] affirm that quality control allows for high product quality standards, reducing wastage and rework.

According to Zhao et al. [25], a quality management system is a set of organised processes desirable for the business product or service to satisfy client, consumer or customer demands. It comprises standards and guides with management systems and specific tools such as auditing methods that should be verified to meet agreed standards. Similarly, according to Bjørg, Granly and Welo [26], the development of international standards resulted in a diversity of models, such as the Acorn method. Zhao et al. [25] assessed the extent to which SMMEs disclosed quality compliance in their organisational strategies. They found several quality disclosure strategies for SMMEs to improve organisational performance and optimise competition in the marketplace. Owens [27] similarly examined the adoption of quality practices in SMMEs and environmental practices in small service companies. They found that 'high-quality SMMEs' have chances of obtaining high profits than the 'low-quality SMMEs', even when customers are aware of the actual quality of a small business organisation.

South African Bureau of Standards (SABS) is governed by the Standards Act, 2008 (Act No. 8 of 2008), which is to develop and review South African National Standards (SANS) for various industrial sectors. Therefore, industries need to adopt these standards to ensure an acceptable level of quality in their operations. SABS Integrated Annual report (2018/19) deduces that applying quality standards assures good quality and performance of products. Some of these standards are adopted by organisations voluntarily; however, most of them are regulated by the National Regulator for Compulsory Specifications (NRCS), which prevents non-compliant products from entering the local markets. The National Regulator governs NRCS for Compulsory Specifications Act, Act No. 5 of 2008, which enforces standards to ensure only confirming products enter the markets. The NRCS, therefore, affirms the importance of product compliance in the South African market. The objective is 'to protect public health, safety and the environment and to promote fair trade, which is achieved through ensuring that businesses produce, import or sell products or provide services that comply with the minimum safety and environment requirements, and do not fall short of the declared measure' ([28], p. 8).

The SABS Integrated Annual report ([29], p. 22) highlighted that while the government needs national standards to catalyse economic activity to achieve societal benefits, it is imperative to support local manufacturers to compete in the domestic and overseas markets. The industry and consumers, in turn, need standards to support innovation, to be protected against poor quality products and to comply with societal expectations by lowering the cost of production. The author is also of the view that standards play a vital role in the public's daily lives. Standards control and manage societies either directly through standards set by individuals or imposed through government legislation. Research findings showed that certified organisations are more successful than their non-certified counterparts. The ISO 9001 [1] standard highlights adopting a quality management system as a strategic decision. This can enhance organisation performance and provide a sound basis for

#### *Global Trade in the Emerging Business Environment*

sustainable development initiatives. The ISO standard further highlights that the potential benefits to an organisation of implementing a quality management system are: a) the ability to consistently provide products and services that meet customer and applicable statutory and regulatory requirements; b) facilitating opportunities to enhance customer satisfaction; c) addressing risks and opportunities associated with its context and objectives; d) the ability to demonstrate conformity to specified quality management system requirements. Potential benefits are elaborated and supported by reviewed literature below:
