The QM evolution: Behavioral quality management as a firm's strategic resource

Abstract Firms implement various quality management (QM) practices to improve process quality. Scholars recognize that QM practices consist of both technical and behavioral oriented practices. The relationship of technical and behavioral oriented practices on performance has led to paradoxical relationships. Improving quality performance necessitates understanding the relationship between technical and behavioral orientated practices. This study empirically examines the relationship between technical and behavioral quality practices by collecting survey data from both US-based (N = 152) and China-based (N = 222) firms. The analysis uses the structural equation modeling technique, and shows that behavioral QM practices fully mediate the relationship between technical QM practices and firm performance. This implies that behavioral QM practices act as a strategic resource which helps generate a competitive advantage. The results contribute to understanding how quality management practices can lead to a competitive advantage.