The impacts of quality management practices on business performance

Abstract

Purpose This paper seeks to examine the way quality management practices (QMPs) impact quality outcome, R&D process, and business performance, using investigation data from Chinese firms. The possible moderating effects of industrial types and competition on the above influencing relationships were investigated as well. Design/methodology/approach A two‐round questionnaire survey was conducted to 196 manufacturing and service firms in West China, and hypotheses were verified using a structural equation model with LISREL software. Findings The results suggest that quality management practices do not have a positive impact on firms' business performance directly, but have an indirect impact on business performance mediated by quality performance and R&D performance. Furthermore, the authors find that industrial type can moderate the relationships between quality management practices and business performance, while competition does not. Originality/value The findings make a significant contribution to understanding how QMPs impact firms' performance. In addition, the authors' research provides empirical evidence for the fact that QMPs' contribution to firms' financial and marketing performance is greater in service firms, which partly reflects the actual situation in China and other similar developing countries.

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