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The aim of this study is to evaluate the current approach to quality‐management practices in the small‐firm software industry. In particular, the impact of the revised ISO 9000:2000 quality standard is explored with regard to this sector. The research methodology involves a multiple case‐study approach, guided by an initial exploratory survey, involving small software firms from Great Britain and the Republic of Ireland. The case approach includes semi‐structured interviews, organisational information, and archive data. In summary, the research findings indicate that the state of quality‐management practices in the software industry is very weak. However, there is a perception in the industry that effective quality‐management systems can play a key role in improving both operational and strategic business performance. Thus, there is a significant opportunity for improvement in the software industry and for the incidence of large‐scale project failure to be diminished.

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