The Role of Quality Management in Firm Performance

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.