The power of TQM: analysis of its effects on profitability, productivity and customer satisfaction

This article analyses the effects of total quality management (TQM) in an organisational context. In our analysis we study how the experience (or age or application time) of TQM and the depth (level of self-assessing scores of the business unit) of TQM affect the performance of the unit measured with customer satisfaction, profitability and productivity. Our unique research setting was based on longitudinal data from a global integrated process products company. The results of our analysis indicated that TQM does have an effect on all three types of performance measured. However, there was variation in whether the effects come from the experience of TQM or its implementation. As the results of this study are based on one Case Company, the utilisation of the results as such may be somewhat limited.