THE RELATIONSHIP BETWEEN TOTAL QUALITY MANAGEMENT PRACTICES AND OPERATIONAL PERFORMANCE

THE RELATIONSHIP BETWEEN TOTAL QUALITY MANAGEMENT PRACTICES AND OPERATIONAL PERFORMANCE

April 1999 | DANNY SAMSON AND MILÉ TERZIOVSKI
This study examines the relationship between Total Quality Management (TQM) practices and operational performance in a large sample of manufacturing companies in Australia and New Zealand. The research aims to address the gaps in the literature by empirically testing the effectiveness of TQM implementation. Using a database of 1200 manufacturing organizations, the study evaluates the reliability and validity of TQM practice and performance measures. The results show that TQM practices are significantly related to organizational performance, with leadership, people management, and customer focus being the strongest predictors. The study also finds that while some TQM elements are strongly related to performance, others are not, suggesting that the implementation and focus on these elements can vary widely among companies. The findings contribute to a deeper understanding of the business value and strategic role of TQM elements, providing insights for managers on how to allocate resources effectively. The study concludes by highlighting the need for further research to refine constructs and elements, as well as to conduct longitudinal studies and in-depth case studies to better understand the long-term impact of TQM practices on performance.This study examines the relationship between Total Quality Management (TQM) practices and operational performance in a large sample of manufacturing companies in Australia and New Zealand. The research aims to address the gaps in the literature by empirically testing the effectiveness of TQM implementation. Using a database of 1200 manufacturing organizations, the study evaluates the reliability and validity of TQM practice and performance measures. The results show that TQM practices are significantly related to organizational performance, with leadership, people management, and customer focus being the strongest predictors. The study also finds that while some TQM elements are strongly related to performance, others are not, suggesting that the implementation and focus on these elements can vary widely among companies. The findings contribute to a deeper understanding of the business value and strategic role of TQM elements, providing insights for managers on how to allocate resources effectively. The study concludes by highlighting the need for further research to refine constructs and elements, as well as to conduct longitudinal studies and in-depth case studies to better understand the long-term impact of TQM practices on performance.
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