TOTAL QUALITY MANAGEMENT: A LITERATURE REVIEW AND AN AGENDA FOR FUTURE RESEARCH

Total quality management (TQM) is a revolutionary approach to effective management. The research in TQM has emerged from practical needs of organizations embracing this philosophy, and the literature is mostly conceptual and practitioner-oriented. There is a lack of sound theoretical framework classifying past efforts and guiding future research. To fill the void, a study of the published TQM literature is undertaken. A review, classification, and analysis of the research in TQM spanning the last two decades is presented. A total of 226 TQM-related articles are identified from 44 refereed management journals published from 1970 to 1993. These articles are then classified and analyzed using the following two-dimensional scheme: (1) article orientation (conceptual, case study, empirical, analytical, simulation, and overview) and (2) article focus using the Malcolm Baldrige National Quality Award criteria. The analysis of the literature presents pertinent developments in each of the seven criteria. In addition, it provides future research directions as well as a ready reference of the TQM literature. The suggestions for research should guide future developments in the TQM field and help transform it into a formal discipline.     

DEVELOPING SOPHISTICATED QUALITY IMPROVEMENT APPROACHES THROUGH BUSINESS-ACADEME COLLABORATIONS: INTRODUCTION TO THE SPECIAL ISSUE

The pursuit of better performance has led to a number of business-academe collaborations. These collaborators have developed a number of sophisticated approaches that go far beyond such traditional simple methods as benchmarking against the best company, Ishikawa diagrams on feedback and control, Pareto diagrams, incentive systems based solely on output or quality, standard process control charts, and separate treatment of control charts and product inspection. The authors in this special issue report on approaches like benchmarking industrial performance through industry studies; the use of an artificial-intelligence statistical-tree growing method to analyze complex customer service data; an incentive system based on the total quality management (TQM) concepts of continuous improvement, teamwork, adaptation to change, and a focus on customer satisfaction; and integration of product inspection and process control. Because of the continuing widespread interest in TQM, there is an opportunity to take stock of how successful TQM initiatives have been and how we should consolidate and further extend the knowledge in TQM. Two of the papers report on the gap between what organizations espouse as TQM and what they actually implement and on the literature on TQM.     

The integration of TQM and technology/R&D management in determining quality and innovation performance

This paper presents an empirical study which examines the co-alignment between Total Quality Management (TQM) and technology/research and development (R&D) management in predicting organizational performance in terms of quality and innovation. This study improves our understanding of the relationship between TQM and innovation based on the following two major issues. First, this study contributes to the understanding of the co-alignment between TQM and technology management along with R&D management by bridging the gap between the two areas which are often addressed in a separate fashion. Second, this study also examines the impact of the integration between TQM and technology/R&D on quality and innovation performance which have been considered as the primary sources of a competitive advantage. The empirical data was drawn from 194 Australian organizations and analyzed using the Structural Equation Modeling (SEM) technique. The findings indicate that TQM shows a strong predictive power against quality performance but no significant relationship against innovation performance. On the other hand, technology and R&D management shows a significant relationship with quality performance but at a lower level than that of TQM, and shows much stronger relationship with innovation performance. In addition, there is strong and positive correlation between TQM and technology/R&D management. The major implication of this study is that technology/R&D management is an appropriate resource to be used in harmony with TQM to enhance organizational performance, particularly innovation.     

TQM implementation: organisation practices and information infrastructures

This paper provides deeper exploration of the attitudes and perceptions of senior executives reported in an earlier paper. In particular, it investigates two issues; (a) differences in TQM implementation practices due to organisation size and (b) inconsistencies between the senior executives' attitudes and perceptions and their organisations' practices. The method used is to compare the attitudes and perceptions from earlier work with actions, practices and behaviours, including the propensity for measurement and information management. The results underline the central role of data and information, and hence measurement, in successful TQM implementations. Further questions arise which suggest the need for still deeper investigation via in-company case research. The data did not support the interim prediction that TQM implementation is poorer in small firms. Moreover, the more optimistic perceptions of TQM reported in medium and large firms were not sustainable when compared with their actual practices. The paper also provides a foundation for the next phase of this longitudinal research programme, which will track this cohort of firms (n=113) beyond the so-called “two year barrier” to see how many are still practising TQM thereafter. Finally the data shows TQM for this regional sample to be predominantly internally focused on cost reduction at operational levels.     

Swiftness and Intensity of Administrative Innovation Adoption: An Empirical Study of TQM in Information Systems

Considerable attention has been directed toward developing a more complete understanding of innovation adoption by Information Systems (IS) departments. Much of this research has focused on the adoption of technological innovations, and limited research has focused on the adoption of administrative innovations. This paper focuses on an administrative innovation that is increasingly becoming popular among IS departments, namely Total Quality Management (TQM) in systems development. A synthesis of the IS innovation and TQM literatures was conducted to identify environmental, organizational, and task‐related factors that should relate to both the swiftness and the intensity of TQM adoption. The relationships between the identified variables and TQM adoption were examined using data collected from 123 IS departments in Fortune 1000 firms and large government agencies in the U.S. The results indicate that TQM adoption in systems development is influenced by the host organization's quality orientation and factors internal to the IS department including IS management support for quality, the presence of a separate quality assurance function, and the structural complexity of the IS department. Implications of this study for theory, future research, and practice are discussed.     

Foreign Location Choice: Review and Extensions

International Business (IB) research on foreign‐location choice has experienced a revival in recent years, yet a comprehensive review has been sorely lacking. The purpose of this review is to synthesize the findings of recently published articles on the topic of foreign‐location choice and offer fruitful directions for future research. This review consists of three sections: first, the authors provide a historical overview of this research stream by tracing its origins and analyzing the general trend that has shaped research on foreign‐location choice. Next, the authors conduct a review of 137 recent articles published in leading IB and business/management journals. These articles are categorized according to common topics, and the main findings of each category are synthesized in order to bring some cohesion to this fragmented field. Lastly, the authors identify issues that remain under‐researched or require re‐thinking some taken‐for‐granted assumptions. Through this effort, they are able to connect the past, present and future of research on foreign‐location choice and to shed some new light on the IB literature.     

Universal versus contextual effects on TQM: a triangulation study using neural networks

The objective of this study is to extend previous research on total quality management (TQM)-context-performance relationships and ‘fit’ using multiple methods. We combine artificial neural networks (ANNs) with structural equation modelling (SEM) to analyse several hypotheses and propositions. This is the first study in this area of research that utilises ANNs and a triangulation technique in the presence of several contextual factors. The SEM analyses suggest that company size and industry type may have contingency effects on some of the TQM practices and/or TQM-performance relationships. However, the ANN models have shown that these two contingency factors do not moderate TQM outcomes, implying that all organisations can benefit from TQM regardless of size and type. As well, these models show that formal TQM implementation and/or ISO certifications do not add any predictive power to the ANN models except in one case: TQM implementation and/or ISO certification added to organisational effectiveness and customer results to predict financial and market (F&M) results. The results further indicate that even though implementing TQM alone has a bigger impact on F&M results than obtaining ISO certification alone, combining the two will have an even greater impact on these results. Joint implementation leads to greater improvements in organisational effectiveness, which, in turn, has a positive effect on customer results and consequently F&M results. This is a unique finding within the context of moderator effects on TQM-performance relationships.     

A Retrospective Look at Production and Operations Management Articles on New Product Development

We present a retrospective look at the articles on New Product Development that appeared in the first 50 issues of Production and Operations Management (POM). We discuss some of the strengths and weaknesses of this POM literature stream. This article is not intended to be a literature review or an exhaustive review of the articles. Rather, we seek to identify new opportunities for rigorous and relevant research, research that has the potential of differentiating and enhancing POM within the Operations Management literature.     

Interface management research in supplier–customer relationships: findings from a citation analysis of international literature

Currently, the terms interface and interface management in the context of interorganisational relationships between suppliers and customers are under intensive discussion. Central issues are the emphasis placed upon the coordination of activities at business interfaces, and the conviction that the concept can make business operations more efficient and thus more effective. That interface management in supplier–customer relationships is discussed in various academic disciplines and characterized by various thematic approaches makes this field complex. Thus the first goal of this article is to investigate the state of interface research, identifying select topics that promise further significant research in the field of interface management in supplier–customer relationships. In addition, based upon a comprehensive citation analysis of 176 journal articles or 4,654 references, the publication development, the important players and the most important academic journals in interface management research in supplier–customer relationships will be briefly presented. Finally, five clusters in interface management research that provide a framework for additional research activities are, based on a co-citation analysis, defined and briefly analysed.     

A TOTAL QUALITY MANAGEMENT-BASED INCENTIVE SYSTEM SUPPORTING TOTAL QUALITY MANAGEMENT IMPLEMENTATION

Although there have been many cases of total quality management (TQM) success, embracing TQM does not always lead to performance improvements. Many companies resist the changes in organizational processes such as compensation and performance appraisal systems that are required to link TQM efforts to bottom-line performance. We present the basic structure of a TQM-based compensation system that can provide incentives based on a variety of performance measures, including an explicit incentive for the reduction of variability in product variables. As a result, this approach encourages the continuous improvement central to the TQM philosophy, rather than serving as a disincentive for such improvement as do many traditional compensation systems. The set of performance measures can be adjusted periodically to focus on those measures deemed most likely to yield significant increases in customer satisfaction, further supporting the core elements of TQM. The approach is described using examples from the paper manufacturing operation where it has been successfully implemented. A longitudinal analysis of several performance measures is used to demonstrate the effectiveness of the new compensation system.     

Does Quality Still Pay? A Reexamination of the Relationship Between Effective Quality Management and Firm Performance

Because of the changing competitive environment, quality might have lost some of its luster and emphasis in business. The research question we aim to address in this paper is: Does quality still pay in the new competitive environment? Using replication research, we re‐examine the impact of an effective total quality management (TQM) program on a firm's operating performance in the new competitive environment. We use publicly available data for award‐winning firms and adopt several control‐firm‐selection approaches in our event study. Based on data from more than 500 firms, we find that over a 10‐year period—6 years before to 3 years after winning their first quality award—firms in our sample perform significantly better than control groups in various operating performance measures. Not only do award‐winning firms have better results after receiving awards, they also have superior performance records before the award. Our results suggest that quality is still critical to achieving long‐term competitive advantages, and firms who continuously improve their quality continue to reap rewards by way of sales and financial performances exceeding those of their competitors.     

The Emergence of Artificial Intelligence as a Reference Discipline for Decision Support Systems Research

It is timely and appropriate to examine both philosophical and pragmatical issues associated with formalizing the adoption of artificial intelligence as a reference discipline for decision support systems research. This paper reflects on where we were when the first special issue of Decision Sciences on expert systems and decision support systems was published, addresses the dynamics of what has taken place subsequent to the publication of that first special issue, sets forth a proposition to stimulate ongoing dialog with respect to synergies between the decision support system research agenda and the research agenda of the artificial intelligence discipline, and demonstrates how the papers appearing in this follow-up special issue of Decision Sciences are representative of an emerging, challenging, and exciting new decision support systems era.     

An examination of the ISO 9001:2000 standard and its influence on the integration of management systems

Abstract

Analysis of the literature and examination of the various models of integration and testing in the field, have revealed five key issues relating to management system integration. This paper examines the recently published ISO 9001 : 2000 quality management system standard to see how it addresses these issues, under the headings of compatibility, scope and organizational culture. The examination reveals that while compatibility with the ISO 14001 and OHSAS 18001 standards has been improved in some areas, a different approach and model of a management system has been used. The paper suggests that differences in the scope of the standards are also likely to give rise to different sub-cultures which will hinder integration, and scope and culture are more important than compatibility. This leads the authors to conclude that new models of integration should be based on an approach and definitions which can be used in any management system, as well as an integrated one. Models of an integrated management system should also emphasize the need for no significant differences in the scope of the integrated systems, and a strong culture which supports the main requirements of TQM.     

Top Management Team Diversity: A Review of Theories and Methodologies

This paper reviews empirical research on top management team (TMT) diversity. A number of scholars have concluded that upper echelons findings, in particular in terms of the consequences of TMT heterogeneity, have been inconclusive. This review conducts an in‐depth analysis of conceptual and methodological issues related to upper echelons diversity studies and offers some directions for future research. Sixty journal articles, published in ten top international journals over a 22‐year period (1984–2005), were analyzed. The results suggest that upper echelons research is increasingly multidisciplinary in nature; however, in‐depth inquiries into the antecedents of TMT composition and the multilevel contextual influences on the implications of TMT heterogeneity are still needed. This review finds that clarity about level of analysis, both theoretically and empirically, remains an important issue in the field and thus a multilevel approach is strongly encouraged. Moreover, the complexity of diversity as a theoretical construct needs to be acknowledged and operationalized accordingly in upper echelons studies.     

Economic perspectives on leadership: Concepts,causality, and context in leadership research

The fields of leadership and economics have interacted very little until now. The aim of this special issue on “economics and leadership” is to demonstrate the potential benefits of paying attention to and incorporating economic perspectives and methods into leadership research. Specifically, we argue that the field of economics can advance leadership research on three main topics: concepts, causality and context. For each topic, we summarize the state-of-the-art literature and showcase important insights, tools and findings. We also discuss possible critiques of the economic perspective on leadership. The timeliness of this issue is evident from recent discussions on the three C's within the field of leadership research, not least within The Leadership Quarterly itself. Our paper as well as the other six papers in this issue demonstrates that narrowing the gap between economics and leadership is not only beneficial and feasible, but also crucial for the progress of leadership research.     

The many faces of emotional leadership

This article focuses heavily on overviewing and analyzing the seven articles in this special issue on emotions and leadership. The articles are discussed in terms of four key leadership issues. The first issue concerns the traits necessary for leadership. Empathy is shown to be an important variable that is central to both emotional intelligence and leadership emergence. The second issue concerns the relationship of emotions to the leadership process. It is argued that a key leadership function is to manage the emotions of group members, especially with regard to feelings related to frustration and optimism. The third issue involves our perceptions about leaders. Leaders' emotional displays are demonstrated to have a larger impact on perceptions of leaders than the content of the leaders' messages, at least in some circumstances. The fourth area involves the relationship between leadership and performance. Leaders' influences upon emotional process variables are found to have a large impact on performance. The article develops several propositions that summarize the content of this special issue and, in addition, develops new propositions that suggest future areas of research. The article concludes by touching on the review process and acknowledges the reviewers for this special issue.     

Environmental Management — the European Way

While international agreements, international standards, and internationally operating companies have left behind the idea of national borders for environmental management issues, research is still lagging behind in describing developments in this area from an international perspective. The European Business Environmental Barometer (EBEB) is a quantitative survey of the state and development of environmental management in Europe and one of the first to regularly provide results on this issue at a European level. It covers topics such as perceived environmental impact, environmental stakeholders, corporate environmental activities, and environmental management (systems).The results presented in this article are drawn from the latest completed round of the EBEB during which data was gathered in 1997/98. The questionnaire-based survey includes information on more than 2,800 companies from the producing sector with 50 or more employees in 11 European countries.¹     

The impact of environmental characteristics on TQM principles and organizational performance

One recurrent theme within the literature on total quality management (TQM) is the study of its effect on organizational performance. Nonetheless, most research has focused on analyzing the relationships between the implementation of different elements and several types of performance. This paper incorporates the effect of organizational environment as a variable for explaining the impact of TQM on business results. The model is tested using structural equations, employing a survey of quality managers in 273 Spanish firms. The causal analysis results show that dynamism, munificence and complexity influence the degree of implementation of the main TQM principles. The most relevant effects emerge as a result of the environmental dynamism, and the least effects are due to munificence. Similarly, the dimensions of TQM have an impact on different types of performance. The model can be used by organizations to assess their level of TQM success depending on specific environmental characteristics.