Impact of Total Quality Management (TQM) On   Profitability   and   Efficiency   of Baldridge   Award   Winners

Suneel Maheshwari; Deepak Subedi

doi:https://doi.org/10.51768/dbr.v8i1.81200705

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Impact of Total Quality Management (TQM) On Profitability and Efficiency of Baldridge Award Winners

Suneel Maheshwari, Deepak Subedi

https://doi.org/10.51768/dbr.v8i1.81200705

Published Online: January 01, 2007

Author Details ( * ) denotes Corresponding author

1. Suneel Maheshwari, Associate Professor, Division of Accountancy and Legal Environment ,Lewis College of Business, Marshall University, Huntington, USA (suneel@iup.edu)

2. * Deepak Subedi, Assistant Professor, Division of Management and Marketing, Lewis College of Business, Marshall University, Huntington, Huntington, USA (subedideepu26@gmail.com)

Purpose: This paper attempts to assess the performance of Baldridge Award winners to their counterparts in similar industry. Design/Methodology/Approach: For this research, publicly available financial data for Baldrige award winner is used. Financial data was downloaded from CompuServe database. Data for fifteen Baldridge award winners from 1989 to 2003 was available and used in this study. Findings: The findings show that increase in earnings and sales growth of Baldridge Award winners is more than that of the control group, indicating that total quality management can have positive impact on the bottom line. The results also give some indication that lean inventory and quality management go hand in hand. Research Limitations: This study is a pilot phase of a large-scale study. Further data needs to be collected so that issues discussed here can be explicitly hypothesized and tested. Such study will also have to explicitly test whether or not competitive advantage that can be gained from total quality management is eroding. In addition, there might be other non-financial variables that influence the performance of the company. These variables have not been considered in this study. Practical Implications: This study can be used as the ultimate tool to ensure the successful implementation of the TQM. Originality/Values: This study showcased the original work of the authors in the field of TQM.

Keywords

Total Quality Management, TQM, Baldridge Award Winners.

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