TQM and brand-building by Chinese original brand manufacturers: impact on business performance

To gain competitive advantage, original brand manufacturers (OBMs) need to understand how operations and marketing cooperate to achieve performance. Doing so can guide OBMs to make appropriate actions to develop their operational and marketing capability, and foster collaboration between the two functions. Using data collected from 560 Chinese OBMs, the authors investigated the joint impact of total quality management (TQM) initiated by operations and brand-building undertaken by marketing on product quality, brand performance and customer satisfaction and loyalty. The results revealed that the two efforts interact and generate gains that individual efforts cannot realize. Not only their interaction generates additional value to product quality, the results also broadly substantiated the authors’ hypothesis that TQM and brand-building take different paths to affect customer satisfaction and loyalty. In total, although brand-building, as matter of inputs, may impose stronger influences on the performances, OBMs should not neglect TQM, as investing in both is critical to the firm’s long-term success.