An integrative theory of strategic quality management: a cost-benefit framework for evaluating quality improvement programmes†

Most American firms are concerned with improving their quality. Unfortunately, the current literature does not give a comprehensive theoretical model in order to evaluate each recommendation economically. Because of the lack of a theoretical model and the complexity of quality improvement systems, integrative efforts coordinating marketing and production have been largely ineffective in the strategies of firms, since they have not been subject to traditional cost-benefit analysis. This study develops an integrative strategic quality management theory and a cost-benefit model which put quality improvement programmes into the traditional decision-making framework. Conclusions of this study suggest that quality improvement programmes benefits are cumulative and costs are static. Consequently, evaluation of quality improvement programmes must be dynamic and integrative if they are to be properly evaluated.