IDEAS home Printed from https://ideas.repec.org/a/arp/tjssrr/2018p22-30.html
   My bibliography  Save this article

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

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/spi2.6.22.30.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/7/special_issue/11-2018/2/4
    Download Restriction: no
    ---><---

    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sadikoglu, Esin & Zehir, Cemal, 2010. "Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms," International Journal of Production Economics, Elsevier, vol. 127(1), pages 13-26, September.
    2. Youssef Fahmi, 2002. "Contribution à une théorie de la gestion de la qualité totale: les déterminants de l'efficacité," Revue Finance Contrôle Stratégie, revues.org, vol. 5(3), pages 115-140, September.
    3. Vera Ferrón Vílchez & Nicole Darnall, 2016. "Two are Better Than One: The Link Between Management Systems and Business Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 221-240, May.
    4. Charles J. Corbett & María J. Montes-Sancho & David A. Kirsch, 2005. "The Financial Impact of ISO 9000 Certification in the United States: An Empirical Analysis," Management Science, INFORMS, vol. 51(7), pages 1046-1059, July.
    5. Ana Kundid Novokmet & Andrijana Rogošiæ, 2017. "Long-Term Financial Effects of Quality Management System Maturity Based on ISO 9001 Principles," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(S11), pages 1003-1003.
    6. Singh, Vedant & Kumar, Akshay & Singh, Tej, 2018. "Impact of TQM on organisational performance: The case of Indian manufacturing and service industry," Operations Research Perspectives, Elsevier, vol. 5(C), pages 199-217.
    7. Yaser Mansour Almansour, 2015. "The Impact of Total Quality Management Components on Firms Performance," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 6(8), pages 384-394.
    8. Escrig-Tena, Ana B. & Segarra-Ciprés, Mercedes & García-Juan, Beatriz & Beltrán-Martín, Inmaculada, 2018. "The impact of hard and soft quality management and proactive behaviour in determining innovation performance," International Journal of Production Economics, Elsevier, vol. 200(C), pages 1-14.
    9. Cristian Busu & Mihail Busu, 2017. "The Impact of Applying the Total Quality Management Model on the Performance of the Telecom Organizations in Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(S11), pages 1035-1035.
    10. Nicolau, Juan Luis & Sellers, Ricardo, 2002. "The stock market's reaction to quality certification: Empirical evidence from Spain," European Journal of Operational Research, Elsevier, vol. 142(3), pages 632-641, November.
    11. Escrig, Ana B. & de Menezes, Lilian M., 2015. "What characterizes leading companies within business excellence models? An analysis of “EFQM Recognized for Excellence” recipients in Spain," International Journal of Production Economics, Elsevier, vol. 169(C), pages 362-375.
    12. Lilian DE MENEZES & Garry GELADE & Stephen WOOD, 2008. "A Longitudinal Study of the Latent Class Clusters of Modern Management Practices and their Association with Organizational Performance in British Manufacturing," EcoMod2008 23800028, EcoMod.
    13. Conca, Francisco Jose & Llopis, Juan & Tari, Juan Jose, 2004. "Development of a measure to assess quality management in certified firms," European Journal of Operational Research, Elsevier, vol. 156(3), pages 683-697, August.
    14. Dag Øivind Madsen, 2020. "Have the Reports of TQM’s Death Been Greatly Exaggerated? A Re-Examination of the Concept’s Historical Popularity Trajectory," Administrative Sciences, MDPI, vol. 10(2), pages 1-25, May.
    15. M. R. Ibrahim & D. U. Muhammad & B. Muhammad & J. O. Alaezi & J. Agidani, 2023. "The Key to Organizational and construction Excellence: A Study of Total Quality Management," Papers 2305.13104, arXiv.org.
    16. Molina-Azorín, Jose F. & Tarí, Juan José & Pereira-Moliner, Jorge & López-Gamero, María D. & Pertusa-Ortega, Eva M., 2015. "The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry," Tourism Management, Elsevier, vol. 50(C), pages 41-54.
    17. Lanzenauer, Christoph Haehling von & Huesmann, Monika, 2002. "Der Ausbreitungsprozess des Managementinstrumentes TQM," Discussion Papers 2002/22, Free University Berlin, School of Business & Economics.
    18. Valmohammadi, Changiz & Roshanzamir, Shervin, 2015. "The guidelines of improvement: Relations among organizational culture, TQM and performance," International Journal of Production Economics, Elsevier, vol. 164(C), pages 167-178.
    19. Tari, Juan Jose & Molina, Jose Francisco & Castejon, Juan Luis, 2007. "The relationship between quality management practices and their effects on quality outcomes," European Journal of Operational Research, Elsevier, vol. 183(2), pages 483-501, December.
    20. Martinez-Costa, Micaela & Martinez-Lorente, Angel R. & Choi, Thomas Y., 2008. "Simultaneous consideration of TQM and ISO 9000 on performance and motivation: An empirical study of Spanish companies," International Journal of Production Economics, Elsevier, vol. 113(1), pages 23-39, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:tjssrr:2018:p:22-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://arpgweb.com/?ic=journal&journal=7&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.