The Effects of Total Quality Management on Business Performance: Evidence from Taiwan Information-Related Industries

Abstract

Total quality management (TQM) has been proposed to improve business performance and received considerable attention in recent researches. This study empirically examines the extent to which TQM and business performance are correlated and how TQM impacts various levels of business performance. In this study, a TQM framework is developed according to a comprehensive literature review. This framework demonstrates the relationship between TQM and business performance through examining the direct and indirect effects of seven TQM constructs on three different levels of business performance. The proposed model and hypotheses were tested by using data collected from information-related small- and medium- size enterprises in Taiwan. The results of this aforementioned model support the proposed hypotheses. The implications of research findings for researchers and practitioners are discussed and the suggestions for further studies were also provided.