Total quality management practices, competitive strategies and financial performance: the case of thePalestinian industrial SMEs
Date
2013-08-19
Authors
Herzallah, Ahmad M.
Gutiérrez-Gutiérrez, Leopoldo
Rosas, Juan Francisco Munoz
Journal Title
Journal ISSN
Volume Title
Publisher
Routledge
Abstract
The purpose of this paper is to examine the relationship between total quality
management (TQM) practices, competitive strategies – cost leadership and
differentiation – and firm performance in the Palestinian economy. Within this
study, TQM has been conceptualised as soft and hard practices, in congruence with
the literature. An empirical analysis based upon an extensive validation process was
applied to refine TQM, competitive strategies and financial performance scales. Data
were collected through surveying 202 Palestinian industrial small and medium
enterprises. Structural equation modelling was carried out to test the anticipated
relationships. Results derived from this study show that TQM practices have an
indirect, positive and significant relationship with financial performance through
competitive strategies. In addition, a direct, positive and significant relationship
between competitive strategies and financial performance was observed. Results
derived from this study might help managers to implement TQM practices in order
to effectively allocate resources and improve financial performance.
Description
Keywords
TQM , cost leadership , differentiation strategy , small and medium enterprises , Palestine , manufacturing sector
Citation
Ahmad M. Herzallah, Leopoldo Gutiérrez-Gutiérrez & Juan Francisco Munoz Rosas , Total Quality Management & Business Excellence (2013): Total quality management practices, competitive strategies and financial performance: the case of the Palestinian industrial SMEs, Total Quality Management & Business Excellence, DOI: 10.1080/14783363.2013.824714