Abstract
Much evidence has been presented on the critical factors for total quality management (TQM) and its effect on firm performance. Studies aiming to understand TQM have examined the moderators on the relationship between TQM and firm performance. Among these moderators, cooperation among teams and departments has been highlighted but rarely empirically tested. Thus, the paper investigates the conditions under which the effect of TQM is intensified using a sample of 565 firms in Korea. We confirmed that TQM is positively associated with firm performance. In addition, the cooperative internal environment, including the levels of cross-functional team (CFT) and of collaboration between R&D and manufacturing departments (CRM), positively moderates the relationship between TQM and firm performance. This study contributes to the current literature on TQM by considering and testing the moderating effects of collaboration environments.
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