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

Abstract

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.

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