A study of the business value of Total Quality Management

Many scholars have recently researched the relationship between quality management and performance, but there was no one who had discussed the relationship between quality management and performance from the view of business value. This study focuses on the business value of Total Quality Management (TQM) as we studied the fifteen enterprises of the National Quality Award (Taiwan) from seven industries and used eighteen indices of five perspectives to value them. There were eight conclusions, as follows: (1) the business value of all 15 enterprises was greater than the average industry level; (2) the business value of the electronic industry of the National Quality Award owners was over the average business value of the electronic industry; (3) there was a growth trend of business value in the automobile industry award-winning; (4) there was a downward trend of business value in the iron and steel industry award-winning after they obtained the award for seven years; (5) there was a superior business value of the electrical machinery industry before award-winning than after; (6) the business value of food industry award-winning showed an situation over average industry level after obtained the award seventh year; (7) the business value of plastic and rubber industry was significant over the average industry level; (8) there was a continuous growth trend in the electric and cable industry of the National Quality Award (Taiwan) owners after they obtained the award.

[1]  Roberto Filippini,et al.  TQM impact on quality conformance and customer satisfaction: A causal model , 1998 .

[2]  Sanjay L. Ahire,et al.  Development and Validation of TQM Implementation Constructs , 1996 .

[3]  An analysis of the relationship between financial performance and total quality management implementation , 1996 .

[4]  Alan Brown.  Industrial experience with total quality management , 1992 .

[5]  Venetta J. Maytubby,et al.  Concepts and attributes of total quality management , 1991 .

[6]  E. Ofek,et al.  Diversification's effect on firm value , 1995 .

[7]  Nabil Tamimi,et al.  An empirical investigation of critical TQM factors using exploratory factor analysis , 1995 .

[8]  T. C. Powell.  Total Quality Management as Competitive Advantage , 1995 .

[9]  V. M. Rao Tummala,et al.  Quality management practices based on seven core elements in Hong Kong manufacturing industries , 2002 .

[10]  K. Tan.  A comparative study of 16 national quality awards , 2002 .

[11]  Richard S. Ruback,et al.  The Valuation of Cash Flow Forecasts: An Empirical Analysis , 1994 .

[12]  David Gadenne,et al.  An investigation of the perceived importance and effectiveness of quality management approaches , 2001 .

[13]  S. Penman.  Financial Statement Analysis and Security Valuation , 2001 .

[14]  Stanley B. Davis,et al.  Quality Management , 2005 .

[15]  John C. Anderson,et al.  A Path Analytic Model of a Theory of Quality Management Underlying the Deming Management Method: Preliminary Empirical Findings* , 1995 .

[16]  L. J. Porter,et al.  Identification of the Critical Factors of TQM , 1996 .

[17]  M. Bohanec,et al.  The Analytic Hierarchy Process , 2004 .

[18]  Z. Babic,et al.  Ranking of enterprises based on multicriterial analysis , 1998 .

[19]  Roger G. Schroeder,et al.  The Impact of Quality Management Practices on Performance and Competitive Advantage , 1995 .

[20]  Luis G. Vargas,et al.  Prediction, Projection And Forecasting , 1990 .

[21]  Frank E. Block.  A Study of the Price to Book Relationship , 1964 .