The impact of TQM on financial performance

Jonas Hansson

193 citations0/0 files storedMeasuring Business Excellence

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Quality and Supply Management Quality and Management Systems Management Systems and Quality Improvement

Abstract

The question of whether an adoption of total quality management (TQM) improves the financial performance has been discussed for several years. Various studies have been conducted to examine the impact of TQM on financial performance, but there is still disagreement concerning the effectiveness of TQM. This paper presents a study of Swedish quality award recipients, which are compared to branch indices and to identified competitors. The comparison concerns the development of different financial performance indicators. The study indicates that the award recipients as a group outperform the branch index and their identified competitors on most of the studied indicators.

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References

1995Total Quality Management: Empirical, Conceptual, and Practical Issues 1999The relationship between total quality management practices and operational performance 1997Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards 2000The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation 1998The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation 2000Total quality management and sustainable competitive advantage 1993Total Quality Management: The Route to Improving Performance 2000TQM as a management system consisting of values, techniques and tools

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