The Effects of Quality on Business Performance

Abstract

The aim of this study is to show how measures of quality relate to measures of business performance. A general framework is presented to show how the business performance of an organization is affected by the level of quality it achieves in its products and services. To develop this framework, the study Catalogs and classifies studies of quality according to methodology and into case studies, experiments, opinion surveys, and correlational surveys.Presents five categories for definitions of quality.Presents a summary of six theoretical models of relationships between quality and expected outcomes.Summarizes the findings of 43 studies into an overall framework based on strength of evidence.This development is based on two principles. First, quality can be defined in many ways, and each definition relates to business performance differently. Second, quality influences business performance through mediating factors such as reputation and satisfaction, which are subject to many other influences.The article is intended to guide future empirical research designs that investigate the effects of quality; and to assist managers in the selection of an appropriate definition of qualify, and the monitoring of its effects.

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