This study explores the relationship between total quality management (TQM) and firm performance taking TQM as an internally consistent system of practices. The study tests the link between the two variables using the universal approach, analyzes whether the most competitive firms are those adopting TQM, and tests for an isomorphic effect on other firms. The study uses a sample of Spanish firms that have received TQM prizes at the national or regional level between 1997 and 2003 and a control sample for comparison. The findings indicate that in the absence of any evidence to confirm the universal hypothesis, TQM pioneers experience performance gains, because of the early implementation of the system; however, late adopters do not experience similar results. Firms using a TQM system are not necessarily better than their counterparts are, before putting the system into action. The study uses panel data that takes into account the unobservable heterogeneity between individuals and the dynamics of firms' financial variables.

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The aim of this paper is to determine whether firms that have received quality awards (understood as an indicator of the implementation of quality systems) obtain higher profitability than those that have not. Design/methodology/approach -The study was performed on a sample of Spanish firms that received TQM prizes at the national or regional level between 1997 and 2003 and a sample of control firms for drawing comparisons. Findings -The work suggests that pioneer firms that applied this innovation are those that achieved profitability, especially when the model resembles in cases where the EFQM model. Practical implications -The study may provide firms and institutions with some useful guidelines for the planning of future actions to promote the adoption of these management systems. Originality/value -The paper analyses whether the results are influenced by factors such as the time when the award is achieved, the sector to which the firm belongs, or the nature of the award.

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