The impact of total quality management on firms' responsiveness: An empirical analysis

Abstract

Total quality management (TQM) is a philosophy whose main objective is to meet or exceed the needs of internal and external customers. Organizational awareness of the importance of this philosophy is limited to just this one of the many facets of TQM. In an era where quality is no longer a variable, time has emerged as an important metric for performance assessment and evaluation. This paper argues that TQM affects not only quality but also the ability of the firm to become a time-based competitor. It examines the impact of the intensity of TQM activities on the firm's responsiveness. The paper is based on empirical data collected from 165 manufacturing firms in industrial machinery equipment (SIC 35), electronic and electric machinery equipment (SIC 36) and transportation machinery equipment (SIC 37). The findings of this study have many implications for both academicians and practitioners.