Review of Relationship between TQM and Business Performance

Abstract

In todays highly competitive market, the demand for quality is the single most critical factor for companies to survive in the ever-expanding global marketplace. The concept of total quality management (TQM) has been developed as a result of intense global competition. The purpose of this paper is to propose relationship between TQM practices and business performance based on extensive review of the literature. The main contribution of this paper is to identify comprehensive construct of TQM and business performance for improving previous models. Authors also introduce Business ethics as a new construct for TQM practices, which it has not been seen in previous literature as one of the key of sustainability factor. This proposed research will help the academicians and industry players to have better understanding on the importance of TQM implementation and business performance to the company in terms of financial performance, customer satisfaction, quality and production performance.