Comparing Reasons, Practices and Effects of ISO 9000 Certification and TQM Implementation in Norwegian SMEs and Large Firms HONGYI SUN AND TSZ-KIT CHENG City University of H ong Kong This article records the empirical research that investigates the reasons behind, practices and effects of ISO 9000 certification and Total Q uality Management (TQ M) implementation in small and medium-sized (SME) and large manufacturing companies. The research is based on a sur vey of 180 N orwegian manufacturing companies. The main findings are (1) the SMEs implement ISO 9000 standards and TQ M mainly because of market and customer demand or external pressure rather than internal initiation;(2) in practicing TQ M, the SMEs focus on informal, people-oriented approaches; large firms are relatively more structured, organized and process-oriented;(3) different facets of TQ M contribute differently in SMEs and large firms; (4) no significant relation exists between the current ISO 9000 certification and TQ M practices/improvement of business performance. The conclusion is that there are some significant differences between SMEs and large firms in implanting ISO 9000 certification and TQ M. These differences trigger discussions on practical implications for managers in SMEs and large firms. Finally, the limitations of the research and implications for future research are explored. K EY W O R D S: comparative study;ISO 9000 certification;TQ M;SME Introduction The contribution of small and medium-sized enterprises (SMEs) has been recog- nized worldwide. For example, in the UK, about two-thirds of the workforce is in this sector and virtually all large companies depend on SMEs for their suppliers and subcontractors (Parkin and Parkin, 1996). These small businesses generate over a third of UK business turnover (North et al., 1998). In the USA, small firms employ 65% of all US manufacturing workers. As large manu- facturers increase their dependence on suppliers for parts and services, the performance and capabilities of small manufacturers become even more critical to the entire manufacturing sector and to the health of the US economy. The year 1999 was declared the Year of Small Manufacturers in the USA. In Finland, 421 International Small Business Journal Copyright © 2002 SAGE Publications (London, Thousand O aks and N ew D elhi) [0266–2426 (200211)20:4; 421–442; 029142] Vol 20(4):421–442 is b j