The structural linkages between TQM, product quality performance, and business performance: Preliminary empirical study in electronics companies

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71 Citations (Scopus)

Abstract

Total Quality Management (TQM) is one of quality-oriented approaches that many organisations adopt. It is generally acknowledged that manufacturing companies need to be quality oriented in conducting their business to survive the business world. TQM is an integrated management philosophy and a set of practices that emphasise top management commitment, customer focus, supplier relationship, benchmarking, quality-oriented training, employee focus, zero-defects, process improvement, and quality measurement. This paper investigates the structural linkages between TQM, product quality performance and business performance in the electronics industry in Malaysia. Given the nature of this study, the statistical analysis technique called Structural Equation Modelling was used. This preliminary result suggests that there is insufficient statistical evidence to conclude significant simple relationships between TQM, product quality performance, and business performance. This implies that the electronics industry cannot assume direct causal linkages between these three constructs, which might also suggest that there is a more complex relationship between TQM, product quality performance, and business performance. However, the results reveal that top management commitment, supplier relations and training in particular appear to be of primary importance for TQM practices in Malaysian electronics companies.

Original languageEnglish
Pages (from-to)87-105
Number of pages19
JournalSingapore Management Review
Volume27
Issue number1
Publication statusPublished - 2005

Fingerprint

Total quality management
Empirical study
Product quality
Business performance
Linkage
Management commitment
Electronics industry
Top management
Structural equation modeling
Integrated management
Statistical analysis
Malaysia
Quality management practices
Manufacturing companies
Supplier relationships
Process quality
Management philosophy
Supplier relations
Process improvement
Customer focus

Keywords

  • Business performance
  • Electronics companies
  • Product quality performance
  • Structural Equation Modelling
  • Total Quality Management

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)

Cite this

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