Effect of quality management on competitive performance in manufacturing companies: international perspective

From a perspective of competitive strategy, quality is often seen as a source of differentiation. This paper presents results of an international comparison of quality management practices and their impact on competitive performances in 163 manufacturing plants in Japan, US, Germany, Italy and Korea. Eleven measurement scales area were constructed to describe different aspects of quality management. The results indicate the similarities in the implementation of employee's training, cleanliness and organisation, and process control in manufacturing plants. The most differences across the countries exist in relationship with customer and supplier. Regression models show the significant impact of quality management practices on competitive performance. Cleanliness and organisation, process control, employee's training and strategic planning are identified as the primary determinants for improving competitive performance of the manufacturing plants in terms of quality, cost, delivery, and flexibility.

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