Impact of quality on competitive advantage and organizational performance

Abstract

Effective quality improvement has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes and develops a framework that links quality, competitive advantage, and organizational performance. Data for the study were collected from 74 organizations and the relationships proposed in the framework were tested using structural equation modelling. The results indicate that quality improvement can lead to enhanced competitive advantage and improved organizational performance. The contribution of the paper is that it provides empirical support for direct and indirect effects of quality on organizational performance and competitive advantage in Tunisia.

Keywords:

• quality
• competitive advantage
• organizational performance
• structural equation modelling