A study of the relationship between quality management practices and performance in small businesses

Abstract

A considerable amount of resources are being deployed by organisations of all sizes and types towards implementing Total Quality Management and other improvement strategies. However, little is known about the impact these practices are having on organisational performance, particularly for small-and medium-sized businesses. This paper examines the relationship between quality management practices and performance in small businesses. Over the past decade a number of empirical studies has been conducted that examine the link between quality management practices and organisational performance; however, most of these have focused on larger organisations. This study uses data collected from 62 small business in Australia and uses the Australian Quality Awards framework to determine the link between quality management practices and business performance.The authors are grateful to the SMEs that responded to the questionnaire survey and to the Australian Quality Council for providing access to their database. The assistance provided by Simon Moss in data analysis is much appreciated. The Faculty of Business and Economics Research Committee (Monash University) provided the funding for this project.

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