Title: The effect of TQM implementation on firm performance in the Tunisian context

Authors: Senda Wali, Younes Boujelbene

Addresses: Department of Accounting, Sfax Faculty of Economics and Management, University of Sfax, Route de l'aerodrome km 4.5, BP 3018, Sfax, Tunisia. ' Department of Economics, Sfax Faculty of Economics and Management, University of Sfax, Route de l'aerodrome km 4.5, BP 3018, Sfax, Tunisia

Abstract: Total quality management (TQM) is an integrated management system designed to make the best use of an organisation|s resources in order to increase the quality of a firm|s products/services, to satisfy customer needs and improve the efficiency of the production processes. Advocates of TQM have suggested that there should be a positive relationship between implementing TQM practices and performance measures. Recent research (Sila, 2007; Santos-Vijande and Alvarez-Gonzalez, 2007) on TQM has examined the relationships between the TQM practices and various levels of organisational performance. This study examines the direct and indirect effects of these practices on operating and financial performance. The model is tested using structural equations, making a survey of quality managers in 66 Tunisian firms. The causal analysis results show no significant and direct, but a significant indirect relationship between the use of TQM and improvement in financial performance. Similarly, the TQM implementation has a positive and significant impact on operating performance.

Keywords: total quality management; TQM; productivity management; performance measurement; operational performance; financial performance; structural equations model; organisational performance; Tunisia.

DOI: 10.1504/IJPQM.2010.029510

International Journal of Productivity and Quality Management, 2010 Vol.5 No.1, pp.60 - 74

Available online: 30 Nov 2009 *

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