A study of the relationship between quality management practices and performance in small businesses

TLDR

Despite widespread investment in Total Quality Management, little is known about its impact on performance, especially for small and medium‑sized businesses, and most existing studies focus on larger firms. This paper examines the relationship between quality management practices and performance in small businesses. The study analyzes data from 62 Australian small businesses using the Australian Quality Awards framework to assess the link between quality management practices and business performance.

Abstract

A considerable amount of resources are being deployed by organisations of all sizes and types towards implementing Total Quality Management and other improvement strategies. However, little is known about the impact these practices are having on organisational performance, particularly for small‐ and medium‐sized businesses. This paper examines the relationship between quality management practices and performance in small businesses. Over the past decade a number of empirical studies has been conducted that examine the link between quality management practices and organisational performance; however, most of these have focused on larger organisations. This study uses data collected from 62 small business in Australia and uses the Australian Quality Awards framework to determine the link between quality management practices and business performance.