Total Quality Management as Competitive Advantage

Total Quality Management (TQM) has become, according to one source, `as pervasive a part of business thinking as quarterly financial results,' and yet TQM's role as a strategic resource remains virtually unexamined in strategic management research. Drawing on the resource approach and othe...

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Main Author: Powell, T
Format: Journal article
Published: 1995
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author Powell, T
author_facet Powell, T
author_sort Powell, T
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description Total Quality Management (TQM) has become, according to one source, `as pervasive a part of business thinking as quarterly financial results,' and yet TQM's role as a strategic resource remains virtually unexamined in strategic management research. Drawing on the resource approach and other theoretical perspectives, this article examines TQM as a potential source of sustainable competitive advantage, reviews existing empirical evidence, and reports findings from a new empirical study of TQM's performance consequences. The findings suggest that most features generally associated with TQM-such as quality training, process improvement, and benchmarking-do not generally produce advantage, but that certain tacit, behavioral, imperfectly imitable features-such as open culture, employee empowerment, and executive commitment-can produce advantage. The author concludes that these tacit resources, and not TQM tools and techniques, drive TQM success, and that organizations that acquire them can outperform competitors with or without the accompanying TQM ideology.
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spelling oxford-uuid:27808005-a9e4-4cde-a17e-a8621d977d592022-03-26T12:07:18ZTotal Quality Management as Competitive AdvantageJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:27808005-a9e4-4cde-a17e-a8621d977d59Saïd Business School - Eureka1995Powell, TTotal Quality Management (TQM) has become, according to one source, `as pervasive a part of business thinking as quarterly financial results,' and yet TQM's role as a strategic resource remains virtually unexamined in strategic management research. Drawing on the resource approach and other theoretical perspectives, this article examines TQM as a potential source of sustainable competitive advantage, reviews existing empirical evidence, and reports findings from a new empirical study of TQM's performance consequences. The findings suggest that most features generally associated with TQM-such as quality training, process improvement, and benchmarking-do not generally produce advantage, but that certain tacit, behavioral, imperfectly imitable features-such as open culture, employee empowerment, and executive commitment-can produce advantage. The author concludes that these tacit resources, and not TQM tools and techniques, drive TQM success, and that organizations that acquire them can outperform competitors with or without the accompanying TQM ideology.
spellingShingle Powell, T
Total Quality Management as Competitive Advantage
title Total Quality Management as Competitive Advantage
title_full Total Quality Management as Competitive Advantage
title_fullStr Total Quality Management as Competitive Advantage
title_full_unstemmed Total Quality Management as Competitive Advantage
title_short Total Quality Management as Competitive Advantage
title_sort total quality management as competitive advantage
work_keys_str_mv AT powellt totalqualitymanagementascompetitiveadvantage