Abstract
In today's business environment, global competition, which has gained momentum with the increase of consumers' quality awareness and consequently, their expectations, has led to the rise of quality management practices by companies. Hence, companies, with the aim of satisfying the needs and wants of customers and thereby attaining competitive advantage, see the inclusion of quality management in the managerial process as a necessity, and they develop optimal performance criteria for such management. In this context, researchers have investigated the effects of quality management applications on innovation performance, production performance, marketing performance, and financial performance of the organization. The empirical research conducted in the last 10 years investigating the relationship between quality management practices and firm performance revealed a significant positive relationship between quality management practices and firm performance.
TopMethodology Of The Literature Review
An integrative type of literature review for eliciting comprehensive knowledge of the role of quality management in firm performance was deployed. Specifically, 78 documents from electronic databases, including JSTOR, EBSCOhost, ScienceDirect, Scopus, ProQuest, Springer, and SAGE, that reported quantitative and qualitative study findings on quality management associated with firm performance between 2001 and 2020 were scrutinized. For identifying the relevant studies, the following key terms were utilized: quality, quality management, total quality management practices, Six Sigma, Lean Management, financial performance, and non-financial performance.
Key Terms in this Chapter
Quality Management: It is a holistic approach to achieving and maintaining high-quality outputs, and it gained substantial importance in recent years owing to the globally rising fierce competition.
30-Second Rule: It is a rule that forces an employee to find, retrieve, and replace something within this timeframe.
5S Rule: It is a strategy used for optimizing business results and formed by Seiri : Categorization, Seiton : Ordering, Seiketsu : Standardization, Seiso : Cleaning, and Shitsuke : Discipline.
Six Sigma: It is the effective use of all employee information and quantitative methods to evaluate and improve its core processes to meet customer needs.
TQM (Total Quality Management): A sort of management based on the leadership of the top management, customer orientation, teamwork, training of the employees, zero error, and continuous improvement.
Lean Management: It is a management method focused on improving business performance through developing capabilities of all of its human resources.