THE RELATIONSHIP BETWEEN TQM AND ORGANIZATIONAL PERFORMANCE: AN EMPIRICAL ASSESSMENT

This study investigates the relationship between TQM and (i) product performance and (ii) organizational performance. Cross-sectional data of 405 manufacturing firms in Malaysia is analyzed using the chi-square test. The results indicate that TQM does not have a significant relationship with product performance. However, in terms of organizational performance, TQM has a strong association with product quality and development, sales and profit, marketing, commitment to customer, respect for top management, contribution of employees, and communication between divisions.