Total Quality Management and Company Characteristics: An Examination

Abstract

Based on a research study of Spanish industrial companies, this paper analyzes the effect that different company characteristics have on the application of TQM. The characteristics examined include the following: size, by number of employees; nationality; conviction about the benefits of TQM; type of customer; perceived product value; existence of advice during the process of sale; type of competition; and production process characteristics. A TQM construct was developed to measure the effect of these characteristics on the level of TQM application. The main findings of the study support the importance of training in the development of TQM. It was found that those companies with better-trained employees apply TQM to a greater degree; and that automation and large batch production are factors that do not appear to affect TQM development. It is also pointed out that quality is more important for companies when the value of the product for the user is perceived to be considerable and when the level of information available for the consumer is extensive. This paper also explores the implications for management with respect to the main findings of the study.