Topic > Advantages of Total Quality Management - 2550

Research hypothesesThe results in the literature will help to formulate some hypotheses that will be investigated in this research. Effective TQM leads to quality improvement. Improved quality is linked to increased market share and higher profits (Reed et al., 1996). Organizations are able to create high-quality products through continuous process improvement and process efficiency (Reed et al., 1996). Quality products could provide a competitive advantage for an organization (Porter, 1985). Since higher prices may be charged, this will increase profitability and achieve high market shares (Kumar et al., 2009). Therefore, TQM will likely create products with high-quality products when organizations focus on process and quality improvements. This will also increase the market share. According to this information, the hypothesis would be: H1: TQM practices lead to better market share H2: TQM practices generate better and improved quality products TQM is linked to high stock market performance and increases profit margins and revenues, therefore, organizations with TQM in place can gain a competitive advantage (Lemak et al., 1997). Organizations that employ TQM practices such as continuous process improvement can increase their productivity, and therefore have more products available on the market (Yusuf et al., 2007). Therefore, TQM improves the revenues of organizations. According to this information, the hypothesis would be:H3: TQM practices increase an organization's revenueOrganizations that are quality-driven and have built long-term relationships with suppliers, are able to create quality products to meet needs and the expectations of its customers. Since TQM leads to better product quality, increases customer… middle of paper… high commitment from top management, etc. It is important to follow TQM practices as it has a positive impact. impact on performance leading to a competitive advantage. Frequently used competitive advantage measures, i.e. increase in revenue, quality of products, level of customer satisfaction and increase in market share, were used in this research. And the results show that TQM leads to an increase in product quality, customer satisfaction and market share. These measures have also been found to have increased, and are higher than those of competitors, since the implementation of TQM. However, the results show that TQM does not directly increase an organization's revenue. There are many other factors such as market developments and advertising that impact revenues. However, it can be concluded that TQM leads to a competitive advantage for organizations.