Effects of Quality Management on Performance

11 Jul Effects of Quality Management on Performance

The relationship between quality management practices and operational performance has been widely documented in the literature, showing a positive influence (Chatzoglou, Chatzoudes, & Kipraios, 2015; Prajogo, Huo, & Han, 2012). For instance, customer focus may reduce complaints, and therefore improve customer satisfaction (Das, Handfield, Calantone, & Ghosh, 2000). Also, process and supplier management helps to provide a product meeting customers’ specifications, thus improving production standards (Prajogo et al., 2012) and product quality (Grandzol & Gershon, 1998).

Although the relationship between quality practices and financial performance is not a clear one (Kusumah & Fabianto, 2018; Roca-Puig & Escrig-Tena, 2017), it may be said that these practices may improve sales and market share (Powell, 1995). This is the case because practices such as people management, customer focus and supplier relationships affect process management, which leads to improvements in financial performance (Pham, 2020).