AN EMPIRICAL STUDY ON THE RELATIONSHIP BETWEEN TQM AND BUSINESS PERFORMANCE

• Main Authors: Szu-hao Li, 李嗣浩
• Other Authors: Kun-huang Yeh
• Format: Others
• Language: en_US
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/27629084545091395187

碩士 === 大同大學 === 事業經營研究所 === 88 === AN EMPIRICAL STUDY ON THE RELATIONSHIP BETWEEN TQM AND BUSINESS PERFORMANCE Advisor: Prof. Kun-huang Yeh Student: Szu-hao Li TATUNG UNIVERSITY GRADUATE SCHOOL OF MANAGEMENT MASTER THESIS JUNE 2000 ABSTRACT In the 1990s, Total quality management (TQM) has become an international language and one of the most talked-about issues in both private and public sectors. However, the study of McKinsey Company showed that nearly two-thirds of the TQM programs they examined were terminated, because these programs did not lead to expected results. Therefore, it is necessary to examine further the strength of the relationship between TQM and organizational performance. Based on the extensive review of international literature and the evaluation criteria of major international quality awards, the conceptual framework of this study was formulated. A total of the largest 500 manufacturing corporations in Taiwan were sent the questionnaire. First, the fit of critical TQM factors was tested by using confirmatory factor analysis, but the fit statistic was not good. Hence, the exploratory factor analysis was used to group those 51 items (including 35 TQM critical index variables and 16 techniques included in TQM) into eleven constructs. Then, the measurement constructs of TQM performance were tested by using confirmatory factor analysis. Finally, the relationship between TQM and performance was tested by conducting the regression analysis. Besides, the moderating effects of several moderators (the industry type, the ownership type, and the length of time practicing TQM) were included in this study. Those results are shown as follows: 1. There are eleven constructs of TQM: management leadership, education and training, quality in process, work environment and culture, measurement and feedback, supplier quality management, human resource management, fundamental improvement skill, quality and cost oriented improvement skill, on-line SPC, and on-line SPC. 2. The constructs of performance: customer satisfaction, employee morale, productivity, defects of production volume, cost of quality, and delivery. 3. The relationship between TQM and performance is positively significant. In other words, the higher the degree an enterprise implements TQM, the better its performance is. 4. In regard to moderators, there are significant moderating effects of the industry type, and the length of time practicing TQM on the relationship between TQM and performance. However, the moderating effect of the ownership type is insignificant.