The Impact of Environmental Factors on Total Quality Management and Firm Performance: Evidence from Industrial Enterprises in Iran

ABSTRACT:The current study, unlike most recently published research focused on the relationship between utilization of a range of elements of Total Quality Management (TQM) and performance;point out to the likely impact of organizational environments on the different aspects of TQM and organizational performance. The model employed in the present study is evaluated using structural equation from a qualitative study of top and middle managers from the quality departments of 135 industrial enterprises in Ilam in western Iran. Using random sampling method to select the sample, a questionnaire was administered to collect the required data. Correlation method was employed to test the hypotheses of the study, and the results indicated that the environmental factors are effective on the principles of TQM; however, the impact of environmental factors on the principles of TQM was of higher importance. Additionally, it was revealed that principles of TQM have an impact on organizational performance.