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Who Adopts Total Quality Management (TQM): Theory and An Empirical Test

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  • John M. Barron
  • Kathy Paulson Gjerde

Abstract

The recent emergence of total quality management (TQM) in the U.S. has spawned a great deal of interest in management circles as well as in the mass media. However, despite the growing number of firms that have adopted this management technique, few formal tests exist concerning the pattern of adoption as well as the changes that accompany the adoption of TQM. This paper contrasts models of production for TQM and non‐TQM firms in order to explore reasons why some firms but not others have adopted the TQM approach to quality improvement. Predictions arising from such a comparison are tested using a unique data set that combines data on firms from three different sources. Our findings tend to support the proposed theory of systematic differences between firms that find it advantageous to adopt TQM and firms that do not. We also find evidence that firms adopting TQM experience greater growth in sales, employment, and capital stock.

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  • John M. Barron & Kathy Paulson Gjerde, 1996. "Who Adopts Total Quality Management (TQM): Theory and An Empirical Test," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(1), pages 69-106, March.
    • Handle: RePEc:bla:jemstr:v:5:y:1996:i:1:p:69-106
    DOI: 10.1111/j.1430-9134.1996.00069.x
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    Cited by:

    1. Paulson Gjerde, Kathy A. & Slotnick, Susan A., 2004. "Quality and reputation: The effects of external and internal factors over time," International Journal of Production Economics, Elsevier, vol. 89(1), pages 1-20, May.
    2. A.M. Lima, Marcos & Resende, Marcelo & Hasenclever, Lia, 2000. "Quality certification and performance of Brazilian firms: An empirical study," International Journal of Production Economics, Elsevier, vol. 66(2), pages 143-147, June.
    3. Adams, Mike, 1999. "Determinants of ISO accreditation in the New Zealand manufacturing sector," Omega, Elsevier, vol. 27(2), pages 285-292, April.
    4. Barron, John M & Gjerde, Kathy Paulson, 1997. "Peer Pressure in an Agency Relationship," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 234-254, April.
    5. Nelson P. Repenning, 2002. "A Simulation-Based Approach to Understanding the Dynamics of Innovation Implementation," Organization Science, INFORMS, vol. 13(2), pages 109-127, April.
    6. Lima, Marcos A. M. & Resende, Marcelo & Hasenclever, Lia, 2004. "Skill enhancement efforts and firm performance in the Brazilian chemical industry: An exploratory canonical correlation analysis--research note," International Journal of Production Economics, Elsevier, vol. 87(2), pages 149-155, January.
    7. Nelson P. Repenning, 2000. "Drive out Fear (Unless You Can Drive It in): The Role of Agency and Job Security in Process Improvement," Management Science, INFORMS, vol. 46(11), pages 1385-1396, November.

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