Measuring organisational effectiveness and business performance in firms implementing total quality management

Hale Kaynak

International Journal of Manufacturing Technology and Management, 2006, vol. 8, issue 4, 355-381

Abstract: Inconsistent results of studies on total quality management (TQM) and business performance have led to suggestions in quality management literature that organisational effectiveness be assessed to identify changes in the organisation following the implementation of TQM, and to gain insights into the relationship between TQM and firms' business performance. This study responds to these suggestions by empirically validating four dimensions of organisational effectiveness and investigating relationships among the dimensions of organisational effectiveness and business performance. A proposed research model and hypotheses are tested by using cross-sectional mail survey data collected from firms operating in the USA. Structural model tests support the proposed hypotheses. The implications of the results for researchers and practitioners are discussed and further research directions are offered.

Keywords: business performance; financial performance; market performance; inventory management performance; managerial process model; organisational development model; internal process model; organisational effectiveness; quality performance; systems resource model; TQM; total quality management; performance measurement; manufacturing performance. (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmtma:v:8:y:2006:i:4:p:355-381

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