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The Impact of Total Quality Management on Corporate Performance in Malaysian Public Listed Companies

Author

Listed:
  • Khor Saw Chin*

    (Faculty of Business and Finance, Universiti Tunku Abdul Rahman, 31900 Kampar, Perak, Malaysia)

  • Saudah Sofian

    (Faculty of Management, Universiti Teknologi Malaysia, 81310 UTM Skudai, Johor, Malaysia)

  • Oh Yit Leng

    (Faculty of Business, Multimedia University, 75450 Bukit Beruang, Melaka, Malaysia)

Abstract

Total Quality Management (TQM) is a holistic approach that focuses on meeting needs and expectation of customers through the involvement of all organizational functions and individuals for continued improvement. It is widely accepted as a mean of sustaining competitive advantage. However, the review of performance-related TQM literature shows that researchers have different approaches in conceptualization of performance measures and inconclusive about the positive impact of TQM on corporate performance. Therefore, this study aims to examine the effect of TQM practices on corporate performance, both financial and nonfinancial performance. The empirical data had been drawn from 132 human resource managers in Malaysian public listed companies and analysed using the multiple regression analysis. Finding of this study revealed that TQM has a positive impact on corporate performance across five measure practices, which are, top management leadership, human resource management, customer focus, strategic planning, and information and process management. The major implication of the finding is that the positive impact of TQM on corporate performance is not limited only to Malaysia manufacturing companies, but also be equally achieved across sectors in Malaysia public listed companies.

Suggested Citation

  • Khor Saw Chin* & Saudah Sofian & Oh Yit Leng, 2018. "The Impact of Total Quality Management on Corporate Performance in Malaysian Public Listed Companies," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 22-30:2.
    • Handle: RePEc:arp:tjssrr:2018:p:22-30
    as

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    References listed on IDEAS

    as
    1. Prajogo, Daniel I. & Sohal, Amrik S., 2006. "The integration of TQM and technology/R&D management in determining quality and innovation performance," Omega, Elsevier, vol. 34(3), pages 296-312, June.
    2. Thomas C. Powell, 1995. "Total quality management as competitive advantage: A review and empirical study," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 15-37.
    3. Easton, George S & Jarrell, Sherry L, 1998. "The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation," The Journal of Business, University of Chicago Press, vol. 71(2), pages 253-307, April.
    4. Phan, Anh Chi & Abdallah, Ayman Bahjat & Matsui, Yoshiki, 2011. "Quality management practices and competitive performance: Empirical evidence from Japanese manufacturing companies," International Journal of Production Economics, Elsevier, vol. 133(2), pages 518-529, October.
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