Total quality management, market competition and organizational performance

Abstract This study examines the interactive effects of total quality management (TQM) practices, and intensity of market competition on organizational performance. The responses to a questionnaire survey of 89 production and operation managers, drawn from a cross-section of Australia manufacturing companies, were analyzed using a multiple regression technique. The results show that the higher the degree of market competition, the more positive the relationship between the TQM practices of customer focus and organizational performance is. In addition, the results also confirm that the higher the degree of market competition, the more positive the relationship between TQM practices of product design and organizational performance.

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