A Research On The Relationship Between Total Quality Management Practices And Firm Performance

The 21 century is a quality century. In the international market, the competition advantage of firms doesn't benefit from their lower price, but from their higher quality. So the runners begin to pay more attention to how to improve the quality levels of their products and then to improve their performance by total quality management practices. The aim of this study is to examine the relationship between total quality management practices and firm performance, and then identify which elements of TQM are the best predictors of firm performance.The thesis is organized as follows. Firstly, the paper reviews many empirical studies of TQM practices-performance relationships. Secondly, the paper describes the development phases of TQM, the characteristic of TQM, and the effect of TQM on firm performance, etc. Thirdly, a research model and related hypotheses are offered. The paper then tests the model and hypotheses by performing path analysis. Lastly, the implications of the results for researchers and practitioners are discussed and further research directions are offered.The main findings of this paper as follows.①There is a strong, positive relationship between TQM practices and firm performance.②T he elements of customer focus and resources are the strongest significant predictors of firm performance.③The element of leadership affects firm performance indirectly, and the effect is more strong than other elements'.④There are positive associations between TQM practices, individually and collectively.⑤In order to have a significant effect on performance, firms should do better in aspects of custom and marketing, resource, leadership, measure, analysis and improve practices.