Impact of Using Total Quality Management on the FinancialPerformance of Companies Listed on the Palestine Exchange

Abeer Alatrash
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Abeer Alatrash: Economics and Administrative Sciences College of Al-Azhar University, Gaza, Palestine

International Journal of Business and Economic Affairs (IJBEA), 2018, vol. 3, issue 6, 244-252

Abstract: This paper aimed to explore the impact of using total quality management on the nancial performanceof companies listed on the Palestine Exchange. The researcher used the descriptive analysis approach and relied on aquestionnaire and the analysis of the nancial data of 15 companies from 2011 to 2015. A census is used to explorethe opinions of the study population of 75 people, consisting of managers, heads of departments, and workers in thedepartment of quality management and nance in the listed rms. Responses was 60, which represented a responserate of 80%. Research has concluded with a number of results, among which: The population expressed the degree ofstrongly agree on the dimensions of "Total Quality Management": Support of top management to the quality, continuousoperations improvement, focus on the customer, workers participation and workers training. The weighted average ofdimensions of TQM was 84.15%. The mean of Return on Assets (ROA) was 3%, while the mean of Return on Equity(ROE) was 7%, the mean of Return on Sales (ROS) was 24%, and current ratio was 1.14 times. The study showed thatthere was an impact of the use of total quality management on ROA, ROE, and ROS, while there was no impact of TQMon the current ratio of listed companies in Palestine Exchange. The study showed that there are signi cant di erencesat a signi cant level (0.05) in the responses of the research population about the use of total quality managementof companies listed in Palestine Exchange. Those di erences are due to a training course in the eld of TQM that everyresponder participated ion it, Research has introduced a number of recommendations, among which: Enhance the level ofparticipation of workers in companies listed in the Palestine Exchange companies, Create a specialized department caringabout the total quality management in the companies that hadn't before. In addition to assigning workers specialized inthe quality eld responsible for every quality policy in the company, providing creative advanced training courses andpractices of the quality eld for workers and how it in uences the improvement on nancial performance.

Keywords: Total quality management; Financial performance (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:aya:ijbeaa:2018:p:244-252

DOI: 10.24088/IJBEA-2018-36002

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