Working Paper
Total Quality Management Practices and Outcomes in the Largest U.S. Firms
A survey of the 1000 largest companies in U.S. shows that TQM practices fall into two main categories: core practices and production oriented practices. Core practices have positive impact on improvement in work performance, competitiveness and profitability, and employee outcomes for service organizations. Production oriented practices have a positive impact on competitiveness and profitability for manufacturing organizations. Financial analyses suggest that core practices are positively related to marketshare for manufacturing companies. Production oriented practices have a positive impact on return on equity and collaboration with suppliers in quality efforts is positively related to total factor productivity index for all companies.
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