PurposeThe purpose of this paper is to assess whether the implementation of a total quality management (TQM) approach positively affects the financial performance of European companies. This paper tests whether North American results showing the relative out‐performance of companies that have successfully implemented TQM approaches are replicated in Europe.Design/methodology/approachThis research uses the same methodology as the seminal work of Hendricks and Singhal. The winning of a Quality Award is used as a proxy for the sound implementation of TQM. Publicly available share price and accounting data is analysed over a ten year period. Changes in the performance of award winning companies relative to non‐award winning companies are tested using a matched‐pair comparison approach.FindingsThe results confirm that, despite evident and marked differences in company structures and institutional environments between North America and Europe, stronger performance is again achieved by the TQM‐oriented award winning companies.Originality/valueThere is little empirical research establishing the link between TQM and improved financial performance within Europe, with most existing studies presenting findings only based on perception data. The findings presented in this paper close some of the limitations of previous European studies and use rigorous research methods to estimate the financial and business impact of TQM on company performance in Europe. Furthermore, extending Hendricks and Singhal's seminal study to include Europe, has been an objective of those in the European TQM practitioner community ever since the early results were published.

The ISO 9000 standard has been revised as of December 2000. It has been thought that the implications of addressing the changes may be particularly acute for small businesses, for which the impact of requirements and relative commercial costs of compliance can be greatest. In view of this, the Quality Research Group at the University of Leicester in collaboration with the Centre for Enterprise has conducted a research project with representatives from major internationally accredited UKAS certification bodies to explore the implications that the revision to ISO 9000 is likely to have on the small business community. This current paper reports on the study undertaken by the University of Leicester team with financial and collaborative support from Lloyds Register Quality Assurance and SGS Yarsley, two of the largest international ISO 9000 certification bodies. A detailed survey involving more than 1,000 respondents from UK‐based SMEs has provided a detailed empirical profile of the company’s own views of the value of ISO 9000:2000 on the path to excellence and what they will need to do to make it work. Face‐to‐face interviews were also used to provided verification and views from non‐certified companies. The results of the study are very positive and indicate a changing view and use of a standard that used to be seen as bureaucratic, officious and complacent.

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The pursuit of organisational excellence requires the efficient acquisition and use of knowledge, but this is potentially problematical from a legal context. A particular case in point is benchmarking, a required aspect of the EFQM Excellence Model but which is potentially contrary to intellectual property law and competition law. Knowledge acquired through the practice of benchmarking constitutes a diverse range of potentially and commercially exploitable information. The contribution to organisational excellence by the successful transfer of knowledge to companies is potentially major. A methodology through which companies can receive and subsequently exploit knowledge is through the practice of benchmarking. Benchmarking is an organisational improvement methodology centred on measuring current practices and comparing exogenous entities and subsequent implementation. A central feature of benchmarking as it is practised in the West at present is information flow that takes place between benchmarking partners through a variety of mechanisms including informal undertakings or collaborative efforts. This paper examines the interface between benchmarking and the law, specifically intellectual property and competition law.