Quality management, environmental management and firm performance: a review of empirical studies and issues of integration
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| QM, EM and firm performance 204 © 2008 The Authors Journal compilation © 2008 Blackwell Publishing Ltd and British Academy of Management Table 3. Summary of QM-firm performance link results Study QM variables QP variables FP variables Major findings Anderson et al. (1995) 7 perceptual constructs Visionary leadership internal and external cooperation learning process management continuous improvement employee fulfilment perceptual variable Customer satisfaction Employee fulfilment has a significant direct effect on customer satisfaction. There is no link between continuous improvement and customer satisfaction Flynn et al. (1995) 8 perceptual constructs Top management support customer relationship supplier relationship workforce management work attitudes product design process process flow management statistical control/feedback 1 perceptual construct Perceived quality market outcomes A relationship exists between quality management and perceived quality market outcomes and the percentage of items that pass final inspection without requiring rework objective construct Percentage which passed final inspection with no rework Powell (1995) 12 perceptual factors Executive commitment adopting the philosophy closer to customers closer to suppliers benchmarking; training open organization employee empowerment; zero-defects mentality flexible manufacturing process improvement measurement (perceptual) variable TQM programme performance (perceptual) variable Total performance TQM–performance correlation. However, TQM success critically depends on soft aspects Hendricks and Singhal (1996) 1 construct Winning a quality award objective variable The firm’s market value The stock market reacts positively to quality award winning announcements Hendricks and Singhal (1997) 1 construct Winning a quality award objective variable FP Implementing effective TQM programmes improves firm performance Easton and Jarrell (1998) 1 construct TQM construct objective variable FP Improved long-term performance of firms implementing TQM Dow et al. (1999) 9 factors Workforce commitment shared vision customer focus use of teams personnel training cooperative supplier relationships use of benchmarking; use of advanced manufacturing systems use of just-in-time principles (perceptual) construct Percentage of defects at final assembly cost of warranty claims total cost of quality assessment of the defect rate relative to competitors Three out of nine TQM factors have a significant positive correlation. These are the so-called soft factors’ Samson and Terziovski (1999) 6 factors Leadership people management customer focus planning process management information and analysis (perceptual) construct Organizational performance The relationship exists. The leadership, staff management and customer focus categories were the strongest significant performance predictors |