Total Quality Management Firms Research Articles

External managerial networks, strategic flexibility and organisational learning: A comparative study among non-QM, ISO and TQM firms

This paper studies the effect of external managerial social networks on strategic flexibility and organisational learning, considering three groups of firms (non-quality management (QM) firms, ISO firms and total quality management (TQM) firms). At present, there are a wide variety of alternatives for managing quality in organisations, such as ISO standards and the European Foundation for Quality Management model. Thus, different alternatives will influence the external social networks differently, affecting strategic flexibility and organisational learning, as the literature on external social networks suggests that they can affect strategic flexibility and organisational learning positively. Through a comparative analysis of variance and stepwise regressions, we observed that external social networks affect strategic flexibility and organisational learning positively, primarily based on the greater size of the networks. On the other hand, we found that depending on the kind of QM initiative implemented in the organisation, other effects vary. For example, in organisations without QM, the range of external social networks influences strategic flexibility negatively, whereas in organisations with ISO standards, this negative effect disappears. In organisations with TQM, we found the positive effect of both size and strength of relations on the networks. For organisational learning, a negative relationship was found between organisational capability and network range for the non-QM firm group. These relationships turned out to be positive for the TQM firm group. This paper includes these and other conclusions, as well as future lines of research.

A study of quality management practices in TQM and non‐TQM firms

PurposeThe primary objective of this research is to explore whether total quality management (TQM) firms execute various quality management practices significantly differently from non‐TQM firms in the Association of South East Asian Nations (ASEAN) automotive supply chain. The study also aims to analyze differences between different tiers of this supply chain and to examine the relationship between the implementation of quality management systems and adoption of TQM.Design/methodology/approachA total of 165 datasets collected from ASEAN automotive Original Equipment Manufacturers (OEMs) and their tier 1 and 2 suppliers in five ASEAN countries were tested by using cross‐tabulation analysis and ANOVA with post hoc test.FindingsThe results show that firms that have successfully implemented the concept of work standardization or process‐approach through quality management systems (QMS) certification have tended to pursue TQM as the subsequent stage in their quality journey. In addition, the study found that all seven TQM practices – leadership; strategy and planning; customer focus; information and analysis; people management; process management; and supplier involvement – were significantly higher in TQM firms than in non‐TQM firms. Finally, the study found that tier 3 suppliers were less likely to implement TQM practices compared with higher tiers (1 and 2), except in supplier involvement.Originality/valueThe study presents an insight into TQM constructs evolution in the ASEAN region, which has gained increased prominence and world impact as a result of international outsourcing. It therefore addresses a significant gap in the literature about how quality management is deployed in this important region of the world.

Causation or covariation: an empirical re-examination of the link between TQM and financial performance

Total Quality Management (TQM) is an integrated management system designed to focus an organization’s resources on increasing the quality of a firm’s products/services, satisfying customer needs and improving the efficiency of the processes that produce the firm’s products/services. Advocates of TQM have suggested that there should be a positive relationship between implementing TQM practices and financial performance measures. The empirical evidence supporting this assertion, however, is limited at best. Most of the research has been limited to surveys of managers’ perceptions of the effect of TQM on financial performance. A few empirical studies using financial performance measures have been done, and have shown that TQM firms have better financial performance than other firms. However, better performing companies may be more likely to adopt TQM, so that rather than being a path to improved financial success (causation), TQM merely “comes along for the ride” (covariation). This study examined the relationship between TQM and financial performance, using a sample of Baldrige Award winners and replicated with a second sample of state quality award winning companies, and three different sets of financial performance measures. Both Baldrige and state quality award winners generally had better financial performance than their peers after winning a quality award, and before.

Causation or covariation: an empirical re-examination of the link between TQM and financial performance

Total Quality Management (TQM) is an integrated management system designed to focus an organization’s resources on increasing the quality of a firm’s products/services, satisfying customer needs and improving the efficiency of the processes that produce the firm’s products/services. Advocates of TQM have suggested that there should be a positive relationship between implementing TQM practices and financial performance measures. The empirical evidence supporting this assertion, however, is limited at best. Most of the research has been limited to surveys of managers’ perceptions of the effect of TQM on financial performance. A few empirical studies using financial performance measures have been done, and have shown that TQM firms have better financial performance than other firms. However, better performing companies may be more likely to adopt TQM, so that rather than being a path to improved financial success (causation), TQM merely “comes along for the ride” (covariation). This study examined the relationship between TQM and financial performance, using a sample of Baldrige Award winners and replicated with a second sample of state quality award winning companies, and three different sets of financial performance measures. Both Baldrige and state quality award winners generally had better financial performance than their peers after winning a quality award, and before.

The Long-Run Stock Price Performance of Firms with Effective TQM Programs

This paper documents the long-run stock price performance of firms with effective Total Quality Management (TQM) programs. The winning of quality awards is used as a proxy for effective TQM implementation. We compare stock price performance of award winners against various matched control groups for a five-year implementation period and a five-year postimplementation period. During the implementation period there is no difference in the stock price performance, but during the postimplementation period award winners significantly outperform firms in the various control groups. Depending on the control group used, the mean outperformance ranges from 38% to 46%. Our results clearly indicate that effective implementation of TQM principles and philosophies leads to significant wealth creation. Furthermore, our results should alleviate many of the concerns regarding the value of quality award systems. Overall, these systems are valuable in terms of recognizing TQM firms and promoting awareness of TQM.

The impact of design management and process management on quality: an empirical investigation

AbstractDesign management and process management are two important elements of total quality management (TQM) implementation. They are drastically different in their targets of improvement, visibility, and techniques. In this paper, we establish a framework for identifying the synergistic linkages of design and process management to the operational quality outcomes during the manufacturing process (internal quality) and upon the field usage of the products (external quality). Through a study of quality practices in 418 manufacturing plants from multiple industries, we empirically demonstrate that both design and process management efforts have an equal positive impact on internal quality outcomes such as scrap, rework, defects, performance, and external quality outcomes such as complaints, warranty, litigation, market share. A detailed contingency analysis shows that the proposed model of synergies between design and process management holds true for large and small firms; for firms with different levels of TQM experience; and in different industries with varying levels of competition, logistical complexity of production, or production process characteristics. Finally, the results also suggest that organizational learning enables mature TQM firms to implement both design and process efforts more rigorously and their synergy helps these firms to attain better quality outcomes. These findings indicate that, to attain superior quality outcomes, firms need to balance their design and process management efforts and persevere with long‐term implementation of these efforts. Because the study spans all of the manufacturing sectors (SIC 20 through 39), these conclusions should help firms in any industry revisit their priorities in terms of the relative efforts in design management and process management.

Human Resource Management within Purchasing Management: Its Relationship to Total Quality Management Success

SUMMARYThe extent to which human resource management (HRM) within purchasing management affects total quality management (TQM) was empirically tested. Five primary results emerged, first, organizations with more successful TQM programs were more likely to stress formal performance evaluations of purchasing employees. Second, purchasing employees at successful TQM firms were more involved in key decisionmaking processes that impact their jobs than their counterparts in less successful TQM firms. Third, purchasing employees in organizations with more successful TQM programs had a greater level of perceived support through job security and less fear of failure when taking a risk. Fourth, purchasing employees in more successful TQM firms had more TQM‐related training. Fifth, purchasing employees in more successful TQM organizations were more likely to be rewarded for individual goal attainment than purchasing employees in less successful TQM organizations.

Productivity comparisons between Canadian and US TQM firms: an empirical investigation

This empirical study investigates productivity performance of Canadian (n = 43) and US (n = 95) manufacturers in the automotive parts industry (SIC 3714) that have implemented the total quality management (TQM) philosophy. We identify three different categories of productivity measures: financial, customer related, and internal business related. TQM firms indicate improved performance on various productivity measures. Statistically significant differences exist between the two countries on some of the measures. The correlation analysis suggests that, to be customer oriented, a TQM firm must focus on improving internal business processes. Unlike the US sample, the Canadian sample did not show a significant positive correlation between financial measures, and the customer oriented or internal business related measures.

The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation

This article examines the impact of deployment of Total Quality Management (TQM) systems on the performance of a sample of 108 firms which began serious efforts to implement TQM between 1981 and 1991. The impact of the adoption of TQM is measured by comparing each firm's performance to that of a control benchmark designed to capture what the firm's performance would have been had it not adopted TQM. The findings indicate that performance, measured by profit margin, return on assets, asset use efficiency, and excess stock returns, is improved for the sample of firms that adopted TQM. Performance of the TQM firms is also analyzed based on the extent of development of the firm's TQM approach as assessed by interviewing a senior quality executive in each firm. For firms with more advanced TQM systems, the improvement in financial performance is notably and consistently stronger. Results are also improved when manufacturing firms are considered alone. The association between performance and changes in the number of employees is examined to determine if downsizing is a key driver of the improved performance. The data do not support this hypothesis.

Barriers to TQM: A Class-Level Student Project

In a field project for an undergraduate course in total quality management (TQM), students interacted with practitioners to determine the “real” barriers in successfully implementing TQM. Students interviewed managers from a total of 94 firms. Managers answered openended questions and rated the validity of statements about their organizations. The data were tested for differences between manufacturing and service firms, and TQM versus non-TQM firms. Non-TQM firms were less likely to provide employee training, empower employees, and employ cross-functional teams, compared with TQM firms. TQM firms were more likely to include quality goals in their strategic plans and to have top management visibly committed to quality.

Supervisors’ role in TQM and non‐TQM firms

In the total quality management (TQM) environment, a major responsibility of TQM implementation rests with supervisors who translate the top management strategies into short‐term execution. Hence, the role of supervisors in the quality improvement efforts warrants a serious examination. Presents a comparison of the roles of supervisors in quality improvement strategies in TQM and non‐TQM firms. Based on a survey of 232 manufacturing firms in the USA and Canada, analyses the role of supervisors in TQM and non‐TQM firms using eight quality constructs. Major results indicate that, as compared with non‐TQM firms, supervisors in TQM firms receive more support and encouragement from top management, are under less tension, and possess a higher level of satisfaction. Also, participation of supervisors in the firm’s quality efforts is higher in TQM firms. The higher level of supervisors’ involvement, coupled with the top management commitment, results in higher quality of manufacturing processes and products for TQM firms than non‐TQM firms. Further, when implementing TQM strategies, non‐unionized firms are found to provide a better work environment for supervisors than the unionized firms.

Does total quality management affect applicant perceptions of recruitment and selection processes?

145 job seeking engineers were surveyed to determine whether applicants who interviewed at Total Quality Management (TQM) organizations perceived any differences in the way they were recruited or selected as compared with those who interviewed at non-TQM firms. TQM firms were identified in two ways: “explicit TQM” (where applicants were specifically told that the firm was a TQM employer) and “inferred TQM” (where TQM was inferred on the basis of specific reported practices). Results showed that there were significant differences between TQM firms (regardless of classification) and non-TQM firms, and between explicit TQM firms and inferred TQM firms. For example, explicit TQM firms screened more stringently, whereas inferred TQM status was predictive of positive applicant reactions to the people met during the site visit. Implications for practice and future research are discussed.