Quality Assurance as a Governance Mechanism: Evidence from Selected Listed Firms in Jordan, Egypt, and Palestine

Abstract

Quality Assurance (QA) systems are widely adopted across organizations to ensure operational consistency and compliance with international standards. However, their role as governance mechanisms within corporate structures remains underexplored, particularly in emerging capital markets. This study investigates how QA systems function as governance and assurance mechanisms in listed firms operating in Jordan, Egypt, and Palestine. Drawing on Institutional Theory and Signaling Theory, the study examines whether QA certification operates as a substantive governance mechanism embedded in internal control systems or primarily as a symbolic legitimacy signal. A qualitative multiple-case study design is employed, analyzing Twenty four  listed firms across the three national stock exchanges. Data were collected through documentary analysis of annual reports, governance disclosures, and certification documents, complemented by Forty Eight semi-structured interviews with QA managers, internal auditors, and audit committee members. Using process tracing and thematic analysis, the findings reveal three key patterns. First, the governance impact of QA depends on the extent to which quality systems are integrated into internal audit processes, risk management frameworks, and board oversight structures. Second, credible external verification significantly enhances stakeholder trust and governance credibility. Third, institutional environments moderate the effectiveness of QA systems, with stronger regulatory contexts encouraging substantive integration while weaker enforcement environments foster symbolic adoption. The study contributes to corporate governance literature by conceptualizing QA systems as hybrid governance instruments that simultaneously serve operational, assurance, and legitimacy functions in emerging markets.