The contribution of measurement and information infrastructure to TQM success

There is currently some debate about which TQM practices contribute most to superior performance outcomes. Several proponents argue that softer TQM practices such as leadership, human resource management, and customer focus have more impact than benchmarking, process analysis or performance measurement. The evidence for which TQM factors contribute most to improved performance is not yet conclusive, and sometimes contradictory. Using data from a longitudinal study of 67 TQM firms we contribute to this debate. Our central hypothesis is that measurement of key TQM practices and performance outcomes is essential for TQM success. We examine the measurement practices of this cohort of firms, and report on the changes in their measurement behavior over time. Specifically, we analyze seven dimensions of measurement relating to customer satisfaction, employee satisfaction, process performance, impact of TQM on costs, impact of TQM on sales, self-assessment, and benchmarking. We calculate a measurement-intensity score for each firm, based on how many of these seven parameters were being measured, and we show that increased measurement intensity is strongly associated with perceived TQM success. Finally, using multivariate discriminant analysis, we identify eight variables that explain the level of TQM success with a classification accuracy of almost 90%. We conclude that to attain the highest levels of TQM success, firms need to engage in the measurement practices of self-assessment and benchmarking, but our data suggest that an appropriate measurement framework needs to be in place beforehand.     

Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies

Abstract

Previous evidence suggests that lean practices help organizations to enhance environmental performance. However, the impact of lean practices on the environment is still unclear. This study, therefore, aims to analyse the relationship between lean and environmental performance in two main stages: first, a review of the relevant literature was developed, followed by a multiple case study analysis conducted in five manufacturing companies. Onsite data were collected from the firms during a 5 years’ time span of research and developing semi-structured interviews. Findings indicate that the environmental performance of the companies analysed is generally enhanced in the long-term after the implementation of lean. Moreover, the results suggest that the environmental performance of the firms investigated is mainly improved by using JIT and TQM practices in a lean transformation context. The research findings provide further results remarking the possible negative impact of Kanban deliveries, 5S and TPM on various environmental performance indicators.     

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.     

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 View from the Top: Senior Executives' Perceptions of Changing Management Practices in UK Companies1

There is a growing literature which suggests that the 1980s witnessed significant, even unprecedented changes in the management of organizations. This paper contributes to that literature by providing questionnaire and interview-based evidence of senior managers' perceptions of recent changes in management practice in large and medium-sized firms in the UK. The findings cover three main areas: the changing context of management practice; change initiatives in the areas of human resource management (HRM) and management levels; and the degree of success in managing change. Our findings suggest that senior managers perceive rapid and continuous change within the UK corporate sector. We conclude by suggesting that the changes reported appear to be of degree rather than a radical break with past management practices and that inconsistent means of facilitating change are seemingly being deployed.     

Why Total Quality Management Programs Do Not Persist: The Role of Management Quality and Implications for Leading a TQM Transformation*

Top‐down total quality management (TQM) programs often fail to create deep and sustained change in organizations. They become a fad soon replaced by another fad. Failure to institutionalize TQM can be attributed to a gap between top management's rhetoric about their intentions for TQM and the reality of implementation in various subunits of the organization. The gap varies from subunit to subunit due to the quality of management in each. By quality of management is meant the capacity of senior team to (1) develop commitment to the new TQM direction and behave and make decisions that are consistent with it, (2) develop the cross‐functional mechanisms, leadership skills, and team culture needed for TQM implementation, and (3) create a climate of open dialogues about progress in the TQM transformation that will enable learning and further change. The TQM transformations will persist only if top management requires and ultimately institutionalizes an honest organizational‐wide conversation that surfaces valid data about the quality of management in each subunit of the firm and leads to changes in management quality or replacement of managers.     

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 Contrast of HRM and TQM Approaches to Performance Management: Some Evidence*

Using a survey, this paper provides information about the current state of performance management (appraisal) from a sample of UK‐based EFQM‐affiliated organizations. It particularly focuses on several critical issues of performance management in the context of TQM including: the effectiveness of TQM programmes; the rationale for performance management; degree of internal consistency between TQM assumptions and performance management systems; and the relationship among performance management, effectiveness of TQM programmes, employee satisfaction and overall organization performance. Although the fundamental precepts advocated by founders of TQM appear to be in conflict with performance management practices, however, the article argues that, rather than being contradictory, both can add value to the operations of the other in the interest of the organization as a whole. More precisely, the paper explains how a successful TQM strategy requires a rethinking and changing the organization's performance management system, otherwise it is highly likely to result in a disaster. To conclude, the survey evidence is used, combined with previous literature, to discuss the implications of these results for designing a contextually appropriate performance management for TQM and in the interest of the future research on TQM and HRM.     

Critical success factors of TQM: A select study of Indian organizations

In the context of TQM, it is essential that the organizations identify a few key critical success factors, which should be given special attention for ensuring successful implementation of TQM program. The concept of critical success factors (CSFs) and their use in supporting planning efforts was originated from the approach associated with the development and implementation of management information systems. This paper represents a review of the literature on CSFs and supported by various philosophies of TQM. Such factors are considered as conducive to the success of TQM implementation. Based on an exploratory study of Indian organizations engaged in manufacturing and services, CSFs have been identified.     

Total quality management and information technology

Total Quality Management is now well-established as a central method for improving the efficiency and competitive position of firms and organizations. Developed in a manufacturing environment, it has shown the same attributes in administrative and service industries. In this paper we examine the potential for use in the Information Technology sector. Little impact has been made by TQM in the IT industry. We use the famous 14 points of W. Edwards Deming to discuss the potential and the pitfalls awaiting such implementation. The particular nature of the industry means that the techniques are not transparently transportable, and we develop some initial ideas for using TQM in situations which are traditionally seen as one-off and not susceptible to process analysis and measurement. We illustrate the idea of designing in quality by focusing on software design for reduction of maintenance costs and also touch on the role of the IT sector in corporate TQM development.     

关系激励管理对供求企业绩效影响的实证研究

有效的供求关系激励管理方式设计,以及这种管理方式如何影响供求双方的绩效,是目前国内理论界和企业界都十分关注的问题之一。本文试图从采购企业角度出发探讨关系激励管理方式对供求企业绩效的影响。首先解释了激励型供应商管理方式的指标测度体系,然后通过对国内近百家企业问卷调查的统计分析,得出了如下两个主要结论:激励型管理方式与采购企业业绩之间存在正相关关系;激励型管理方式与供应商业绩之间存在正相关关系。这不仅证实了合作能够创造"双赢"局面的理论观点,而且也为国内企业供应商管理的具体实践提供了理论上的指导。     

An integrated framework of mimetic pressures,quality and environmental management,and firm performances

Abstract

Manufacturers have extensively recognised the strategic importance of quality and environmental management. However, there is little guidance on how they adopt and exercise both management practices in a way that enhances firms’ performance outcomes. To fill the research gap, this paper empirically investigates the relationships among mimetic pressures, a firm’s quality management practices (QMPs), environmental management system (EMS), and environmental and financial performances. By using a data set collected from 212?U.S. manufacturing firms, this study examines the proposed hypotheses. Our major findings are: first, mimetic pressures are a driving factor for EMS but do not motivate the adoption of QMPs; second, QMPs are an important enabler not only for enhancing firms’ financial performance but also for promoting EMS and environmental performance; and finally, EMS does not influence firms’ financial performance directly, but indirectly does so through enhancing environmental performance. This study contributes to the literature of quality and environmental management and provides practical implications by addressing motivating factors of both QMPs and EMS, and identifying factors for successful environmental management practices.     

HRM practices of JIT firms in Canada

Many firms have adopted the just-in-time (JIT) philosophy to compete successfully in the global environment. The literature suggests that die success of JIT implementation depends on sound human resource management (HRM) practices that will attract, maintain, and retain employees with the required workforce characteristics. However, only a few field studies investigate the effectiveness of such practices. This empirical study examines HRM practices of 69 JIT manufacturing firms in Ontario, Canada. Specifically, it identifies important workforce characteristics, recruitment sources and selection instruments used by JIT firms. It also evaluates die degree of change in training, compensation, employee retention, and labour relations practices in the firms since JIT implementation. The level of attainment of various expected outcomes of JIT implementation and die competitiveness of the JIT firms are investigated. Problems faced by HRM managers are also discussed.     

Manufacturing flexibility and advanced human resource management practices

This article analyses the connection between the use of advanced human resource management (HRM) practices, individually and as a system, with manufacturing flexibility. The results show a positive relationship between the implementation of advanced HRM practices and manufacturing flexibility. While most of the advanced HRM practices analysed show higher levels of implementation in flexible firms, no differences are observed in training efforts. Flexible firms are more prone to implement systems of advanced HRM practices.     

Revisiting the stock price impact of quality awards

In an event study, Hendricks and Singhal [Hendricks KB, Singhal VR. Quality awards and the market value of the firm: an empirical investigation. Management Sci 1996;42:415–36.] find evidence that firms that win quality awards are further rewarded with a stock price increase on the day of the award announcement. We revisit Hendricks and Singhal (1996), extend their research and find four reasons why management, owners and analysts should be cautious about expecting an abnormal return when a firm wins a quality award. First, in our sample of Baldrige Award winners, the evidence of a stock price response on the announcement day is only marginally significant. Second, in our sample of State quality award winners, the announcement day relationship between stock returns and winning awards is not significant. Third, in the most recent subperiod, 1992–1997, we find no evidence of positive abnormal returns. Fourth, the marginally significant Baldrige results are actually driven by just four companies. A company-by-company microanalysis reveals that only 50% of the award winners experienced positive abnormal returns. The diminishing stock price response on event day does not necessarily imply a lack of stockholder rewards. Evidence from other studies suggests that the stockholders are rewarded for successful total quality management (TQM) implementation, but the rewards can come long before and after the formal award is presented. From a shareholder value perspective, TQM still matters but the award ceremonies may not.     

Modelling safety climate in the prediction of levels of safety activity

This study examined the architecture of the relationships between components of organizational safety climate, including employee attitudes to safety issues and perceptions of the work environment, and related this to self-reported levels of safety activity. Data were collected from a large multinational manufacturing organization by questionnaire. A total of 915 valid questionnaires were returned and formed the basis for structural equation modelling and subsequent analyses. These data showed that a common structure, or architecture, of attitudes to safety issues and perceptions of the work environment could be constructed that explained levels of safety activity. The strength of employees' attitudes with regard to safety management played a pivotal role in this model through both direct and indirect paths. This is consistent with earlier findings on the importance of management commitment in organizations with well developed safety cultures. An examination of the differences between plants/sites showed that employees differed in their attitudes to safety issues, such as the management of safety and communication, and in their perceptions of workplace hazards. It is intended that this model be further utilized within the organization under study as a basis for monitoring safety performance and planned improvements in safety.     

An analysis of environmental management, organizational context and performance of Spanish hotels

This paper addresses the factors that determine the deployment of environmental management practices and its effects on firms’ financial performance. Empirical evidence supporting this investigation is gathered from the Spanish hotel industry. Our results find support for the notion that age of facilities, size, chain affiliation, stakeholder environmental pressures, and their use of operations management techniques exert a lasting influence on the degree of implementation of environmental management practices by hotel firms. Moreover, our findings show a positive relationship between environmental management practices and firms’ financial performance.     

企业信息披露中的模仿行为研究——基于制度理论的分析

本文在制度理论的分析框架下,研究合法性压力和不确定性条件下企业信息披露中的模仿行为及由此导致的制度同形现象.本文以2006-2010年我国重污染行业上市公司年报中的环境信息披露为研究对象,发现企业环境信息披露存在同形性和模仿行为,且属于模仿其它企业平均水平的频率模仿,而不是模仿领先者.本文将已有的信息披露研究从经济学分析的视角向经济社会学进行拓展,丰富了对信息披露过程中决策者认知过程和制度化过程的认识,同时也透过信息披露中的模仿行为从更加微观的层面为制度化过程中的趋同现象提供了新的证据.     

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.     

Effect of Quality Management Systems and Total Quality Management on Productivity Before and After: Empirical Evidence from the Indian Auto Component Industry

We study the linkages between firm‐level quality initiatives such as quality management systems (QMS) and total quality management (TQM) and output productivity in the Indian auto component industry. We use externally validated quality certification and quality awards as proxies for QMS and TQM, respectively, as it is difficult to directly measure the QMS and TQM efforts of firms. We use an unbalanced panel of 220 firms and a balanced panel of 73 firms from the Indian auto component industry over the period 1993–2006 to study these links. Both parametric as well as non‐parametric approaches are used, as appropriate, to measure the rate of change in productivity and the impact of quality initiatives on productivity change during this period. We determine the proportion of productivity resulting from technical change and relative efficiency change, thus providing insights into the structure of productivity improvements. We find that TQM efforts resulted in a high rate of productivity change (11%) in the award‐winning firms after the award. On the other hand, pre‐certification productivity change due to QMS was 5% and post‐certification change was 3.6%. In the periods prior to certification, productivity change was driven mainly by technical change; whereas the source of productivity change after certification is mixed. However, prior to awards, productivity change was driven mainly by relative efficiency change, whereas post‐award productivity change was due to technical change. The results suggest that management focus on attaining certification did generate conceptual learning (linked to technical change) during the period leading to certification, but these effects were not significant after certification. The results also suggest that the TQM programs generated significant productivity gains in the long run, although setting the associated systems in place did not result in significant productivity change prior to winning awards. Thus, the study provides direct but nuanced evidence linking quality certification as well as the adoption of TQM programs to the associated conceptual and operational learning processes and their impact on the change in productivity.