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Gaining Company’s Sustained Competitive Advantage, Is Really a Necessary Precondition for Improved Organizational Performance? The Case of TQM

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  • Victoria Pekka Economou
  • Pantelis G. Chatzikonstantinou

Abstract

During the last decades companies compete in a highly volatile globalized environment due to international competition and the development of new business approaches. Globalization has transformed the historic patterns of investment, production and distribution of firms and organizations. Enterprises, in order to facilitate their successful existence and improve the levels of their efficiency focus on maintaining and increasing market shares, as well as gaining and sustaining competitive advantage. Recent research reveals that over time competitive advantage has become significantly harder to achieve and moreover sustained. Under those circumstances, Total Quality Management can be considered as an organizational commitment and dedication to produce improved quality goods and services that meet or exceed customers’ expectations through continuously improved processes. The purpose of this paper is to explore the relationship between Total Quality Management and competitive advantage and discuss the possibility of a firm or organization not only to achieve such competitive advantage but also the dynamics to maintain it through the TQM approach. In addition, it will be clearly presented how Total Quality Management can be accepted as a necessary precondition for improved organizational performance.

Suggested Citation

  • Victoria Pekka Economou & Pantelis G. Chatzikonstantinou, 2009. "Gaining Company’s Sustained Competitive Advantage, Is Really a Necessary Precondition for Improved Organizational Performance? The Case of TQM," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 83-100.
  • Handle: RePEc:ers:journl:v:xii:y:2009:i:3:p:83-100
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    References listed on IDEAS

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    1. 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.
    2. Kevin B. Hendricks & Vinod R. Singhal, 1997. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards," Management Science, INFORMS, vol. 43(9), pages 1258-1274, September.
    3. Mark Kroll & Peter Wright & Richard A. Heiens, 1999. "The contribution of product quality to competitive advantage: impacts on systematic variance and unexplained variance in returns," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 375-384, April.
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    1. repec:ers:journl:v:xvi:y:2013:i:sisme:p:15-28 is not listed on IDEAS
    2. Karel HavlÃ­Ä ek & Pavla BÅ™eÄ ková & Vicky Zampeta, 2013. "Quality Management as a Part of CRM," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 15-28.

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    More about this item

    Keywords

    Competitive advantage; Strategic Management; Total Quality Management; Competitiveness; Organizational performance;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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