An empirical examination of the impact of quality tools application on business performance: Evidence from Serbia

Abstract

This study empirically examines the impact of quality tools on business performance in a sample of 119 Serbian industrial firms. Quality tools are classified into three primary groups according to their usage pattern by means of factor analysis and reliability testing: quality tools for reviewing current conditions, for analysing current conditions and for production planning and control. The relationships between these groups of quality tools and business performance measures were tested using stepwise regression analysis. Quality tools for reviewing current conditions have a significantly positive impact on most business performance dimensions, which is to be expected due to the fact that Serbia is in the phase between quality assurance and total quality management. Quality tools for analysing current conditions significantly influence productivity, while those for improvement have a positive effect on capacity expansion as a development performance measure.