Does Total Quality Management Still Shine? Re-Examining the Total Quality Management Effect on Financial Performance

Total Quality Management, Volume 25, Issue 5-6, 2014

Posted: 29 Mar 2014  

Samra Chaudary

Independent

Dr. Sohail Zafar

Lahore School of Economics

Mehrukh Salman

Independent

Date Written: March 28, 2014

Abstract

This paper re-examines the effects of total quality management (TQM) on firms’ financial performance by reviewing the findings of the empirical literature. It assesses the appropriateness of different financial measures while evaluating the impact of TQM as reported by various studies. We propose a new conceptual model to empirically test the effect of TQM implementation on financial performance – one that is meaningful for shareholders. There is near consensus that the overriding objective of a firm should be to maximize shareholders’ wealth. We conclude by briefly reviewing the methodological limitations inherent in studies in this field and recommend avenues for further empirical research on TQM’s impact on financial performance.

Keywords: TQM; shareholder return; financial performance; proxy

Suggested Citation

Chaudary, Samra and Zafar, Dr. Sohail and Salman, Mehrukh, Does Total Quality Management Still Shine? Re-Examining the Total Quality Management Effect on Financial Performance (March 28, 2014). Total Quality Management, Volume 25, Issue 5-6, 2014. Available at SSRN: https://ssrn.com/abstract=2417229

Samra Chaudary (Contact Author)

Independent ( email )

No Address Available

Sohail Zafar

Lahore School of Economics ( email )

Intersection Main Boulevard
Phase VI DHA and Burki Road
Burki, Lahore 53200
Pakistan

Mehrukh Salman

Independent

No Address Available

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