Measurement of business excellence

Abstract

A structural model has been used for the measurement of business excellence where 14 interrelated latent variables are introduced. The model is based on well-established theories and approaches on business excellence behaviour and draws on currently used various quality dimensions. A typical example of business excellence index (BEI) for a group of companies is given using statistical methods. The BEI presented in this paper will allow the organization to compare diff erent areas of its business both directly and over time. A high score of BEI achieved by this method will encourage the organization to apply for the quality award.

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