Total quality management: A source of competitive advantage- A comparative study of manufacturing and service firms in Nepal

Abstract

The study investigated whether or not Total Quality Management (TQM) is a source of competitive advantage in both service and manufacturing sectors in Nepal. Among the objectives were; to find out the impact of TQM on organizational performance, challenges in the implementation of TQM policies and practices, and to ascertain whether TQM is a source of competitive advantage in both service and manufacturing firms in Nepal. The study employed a survey design by using questionnaire and interview guides as the data collection instruments. Simple random and stratified sampling techniques were used to select 4 service firms and 4 manufacturing firms in Kathmandu, the capital of Nepal for the study. It was found out that when properly implemented, TQM will be a source of sustained competitive advantage. The study also revealed that while the quality of manufacturing products can be tested and controlled, it is difficult to control the quality of services before delivery because of their intangibility nature. It was recommended among others that organizations should cultivate a total quality management culture; properly designed training programs on TQM should be regularly organized for staff of organizations so as to ensure that best practices of TQM are implemented if they want to achieve a sustained competitive advantage.