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Differentiators between high and low performing manufacturing firms: an empirical study

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  • Mile Terziovski

Abstract

Anecdotal evidence and the limited number of empirical studies in the literature suggest considerable variability in the performance of Total Quality Management. This paper is based on a quantitative (survey) and qualitative (case study) research study that addresses the above issue by analysing 962 responses from Australian and 379 responses from New Zealand manufacturing firms. Multiple Discriminant Analysis (MDA) is used to test hypotheses and explore differences between high and low performing firms. Based on the analysis, the most significant differentiators were: the "people-related practices" unity of purpose and eliminated barriers between individuals and/or departments; pursuit of continuous improvement rather than "firefighting"; and effective "top-down" and "bottom-up" communication. There is a clear message for managers that leadership, people management issues and customer focus are characteristic of high performing, best practice organisations.

Suggested Citation

  • Mile Terziovski, 2002. "Differentiators between high and low performing manufacturing firms: an empirical study," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 4(5), pages 356-371.
    • Handle: RePEc:ids:ijmtma:v:4:y:2002:i:5:p:356-371
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