The direct and indirect impact of product quality on financial performance: A causal model

The ‘quality–financial performance’ relationship has been studied extensively in the managerial literature, yet no firm conclusion has been reached regarding its nature. Based on a comprehensive literature review, this study proposes a new model for the ‘quality–financial performance’ relationship. The proposed model was empirically tested using the structural equation method and data gathered from 133 Tunisian companies in the plastic transformation sector. The results showed no direct link between product quality and financial performance; however, they did show an indirect link that was attributable to intermediate variables.

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