THE EFFECT OF TOTAL QUALITY MANAGEMENT PRACTICES ON FIRM PERFORMANCE: A CASE OF TURKEY’S 500 TOP FIRMS

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It is considered that quality is a strategic factor in achieving business success on the other hand, it is accepted that Total Quality Management (TQM) can generate a sustainable competitive advantage around the world. Total Quality Management (TQM) practices include customer focus, leadership, continuous improvement, supplier quality management, training, product design, process management. Determining the effect of Total Quality Management practices on firm performance was the purpose of this study. To assess these relationships, it was conducted a questionnaire survey on 500 top firms determined by The Istanbul Chamber of Industry (ISO) on 2009. Firstly, Exploratory Factor Analysis (EFA) was performed and variables were determined. Confirmatory factor analysis (CFA) was performed to measurement model with AMOS 5 and fit indices were calculated. Later, the effect of Total Quality Management practices on firm performance has been determined by structural equation modeling. These results of the analysis showed that there were significant relationship between leadership and firm performance; continuous improvement and firm performance; supplier quality management and firm performance, process management and firm performance. Lastly, results were compared with other studies and limits of study were explained.

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Total Quality Management , Firm Performance , Structural Equation

Journal Of Economics an‎d Administrative Sciences

96

Journal Of Economics an‎d Administrative Sciences