A meta‐analysis of the effect of TQM on competitive advantage

Abstract

PurposeThe purpose of this study is to integrate findings of empirical studies regarding the effect of total quality management (TQM) on competitive advantage. This purpose is to support building a theoretical model of TQM and its components. These components are: top management commitment/leadership, teams, culture, training/education, and process efficiency; they are grounded in the work of Deming and deduced from three other models offered by Dean and Bowen and Reed et al.Design/methodology/approachThis study employed a meta‐analysis to synthesize results of a sample of 51 studies into, effectively, one database. The meta‐analysis approach is used to establish external validity for the theoretical model of TQM used in the paper. The sample includes studies that were conducted in different countries to provide a comprehensive investigation.FindingsEach individual component of TQM was associated with competitive advantage, that these associations each explain roughly 60 percent of the variability in competitive advantage, and that a 1 point change in an average component score (1‐5 Likert scale) results in at least a 0.1 point change in competitive advantage.Research limitations/implicationsThe strong correlations between the five components, coupled with the limited sample size, made it impossible to fit a competitive advantage explanation model that included all five components with any statistical significance. Thus, it was not possible to determine the relative impacts of the five components on competitive advantage. Moreover, these limitations made the impact of leadership relative to other variables indeterminate, even in two independent variable models.Originality/valueDespite the modest findings, this study provides a link between the theory and practice of TQM efforts and provides direction for future research.

“Is Quality Ensuring to Get Competitive Advantages in Auto Manufacturing Industries?” —A Study of Volvo Group

“…Therefore, TQM can be defined as the top management commitment, teams, culture, training, and process efficiency [18]. The combination of these components creates the focus on process [17] and each of these components leads to achieve competitive advantage [17] [18]. Top management or the leaders can have clear indication of the successful component of TQM program [18].…”

“…The combination of these components creates the focus on process [17] and each of these components leads to achieve competitive advantage [17] [18]. Top management or the leaders can have clear indication of the successful component of TQM program [18]. Thus the clear vision should be applied by the managers to achieve competitive advantage [18].…”

“…Top management or the leaders can have clear indication of the successful component of TQM program [18]. Thus the clear vision should be applied by the managers to achieve competitive advantage [18].…”

“…Reed et al (1996) believed that focus on the process provide customer satisfaction and reduced cost, which are the key sources of competitive advantage. Therefore, TQM can be defined as the top management commitment, teams, culture, training, and process efficiency [18]. The combination of these components creates the focus on process [17] and each of these components leads to achieve competitive advantage [17] [18].…”

TQM and Performance Linkage in the Microfinance Institutions: The Mediating Role of IT Capability

“…Considering this situation, this study has been conducted to establish the relationship between the Total Quality Management (TQM) and the MFIs performance, and examine the effect of Information Technology (IT) capability on such relationship. TQM strategy has been cited as among the most important factors for survival and growth of organizations as well as for gaining competitive advantage (Nair, 2006;El Shenawy, Baker, & Lemak, 2007;Irfan & Kee, 2013). However, studies related to TQM and its relationship on the organizational performance in the service industry are limited.…”