Abstract

Many organizations use quality management to improve firm performance, but the results do not always come quickly. Research in the manufacturing sector has found that different organizational characteristics, such as firm size and the degree of capital intensity, influence the perceived benefits of quality management. Uses data from 281 firms that work with quality management to investigate the role of quality practices in service organizations. The results of our investigations support that the relationship between quality practices and business performance is dependent on firm size. In addition provides insight into how the business results are influenced by individual quality practices such as employee management, process orientation and customer orientation, depending on firm size.

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