TQM and performance: Is the relationship so obvious?

Abstract

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.

What characterizes leading companies within business excellence models? An analysis of “EFQM Recognized for Excellence” recipients in Spain

“…Several studies (e.g. Hendricks and Singhal, 2001;Corredor and Goñi, 2011;Boulter et al, 2013) have assessed the link between QM implementation and performance by focusing on award winners. For example, Hendricks and Singhal (2001), in their study of the link QM-performance, assumed that award winners had effectively implemented QM.…”

Dynamics of a relationship between quality and productivity in the automotive manufacturing industry

“…Researchers have devoted time to unpacking the nature of relationship between quality (TQM) and productivity (performance) with conflicting views presented -some authors finding a positive link, others failing to find a significant link, while others argue that TQM is a management fad and could not have any significant link to performance [13][14]. In his literature review, Terziovski makes reference to a list of researchers who applied "generally accepted standards of methodological rigor" to test the relationship quality management practice and organizational performance [14].…”

“…Corredor & Goñi [13] argue that perhaps the relationship between quality management is not so obvious and has to be understood from differing organizational perspectives. Their study casts doubt on previous research findings that suggest implementation of a QMS invariably leads to performance gains.…”

An Empirical Study of TQM Method Practices for Customer Satisfaction and Customer Loyalty

“…Little by little, they will have loyalty to the product and are likely to share their use experience of such product to relatives and friends by word of mouth. The firms improve the quality of their products and services then their will increase reputation, customer satisfaction and customer loyalty (Corredor & Goñi, 2011). The past researches proved that customer satisfaction would impact the customer loyalty.…”