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The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation

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Author Info
Easton, George S
Jarrell, Sherry L
Abstract

This article examines the impact of total quality management (TQM) on the performance of 108 firms that began TQM implementation between 1981 and 1991. The impact of TQM is measured by comparing each firm's performance to a control benchmark designed to capture what the performance would have been without TQM. The findings indicate that performance, measured by both accounting variables and stock returns, is improved for the firms adopting TQM. The improvement is consistently stronger for firms with more advanced TQM systems. The possibility that downsizing could explain the improvement is also examined. The data do not support this hypothesis. Copyright 1998 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Business.

Volume (Year): 71 (1998)
Issue (Month): 2 (April)
Pages: 253-307
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Handle: RePEc:ucp:jnlbus:v:71:y:1998:i:2:p:253-307

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  1. Surendra Gera & Wulong Gu, 2004. "The Effect of Organizational Innovation and Information and Communications Technology on Firm Performance," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 37-51, Fall. [Downloadable!]
  2. Eva Labro & Tero-Seppo Tuomela, 2003. "On bringing more action into management accounting research: process considerations based on two constructive case studies," European Accounting Review, Taylor and Francis Journals, vol. 12(3), pages 409-442, September. [Downloadable!] (restricted)
  3. David I. Levine & Michael W. Toffel, 2008. "Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers," Harvard Business School Working Papers 09-018, Harvard Business School, revised Jul 2009. [Downloadable!]
  4. John T. Addison, 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," GEMF Working Papers 2005-03, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
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