The Impact of Total Quality Management (TQM) on Financial Performance: Evidence from Quality Award Winners
- Topics:
- Total Quality Management
- Tags:
- Business Operations,
- Total Quality Management,
- Strategos,
- Quality,
- It Operations,
- Financial Result,
- Financial Accounting,
- Financial,
- Finance,
- Tqm/Six Sigma/ISO 9000
- Source:
- Strategos
FREE Registration is required
Overview: Total Quality Management is periodically lambasted by management gurus and the business media for its supposedly lack luster impact on financial performance. This paper presents objective evidence on whether this criticism is indeed justified. Three critical issues are addressed in this paper. First, we discuss the ongoing debate on TQM’s ability to significantly improve financial performance, the reasons for this debate, and the importance of resolving this debate one way or the other. Second, we present evidence on the financial results that publicly traded organizations have achieved from implementing TQM effectively. Financial results are measured using variables such as stock returns, operating income, sales, and costs. Third, we discuss how the financial results vary by organizational characteristics such as size, capital intensity, extent of diversification, and the maturity of the TQM implementation.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 196KB | Date: Mar 2000 | Pages: 14
