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Total Quality Management Volume 12, 2001 - Issue 7-8
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Original Articles

The structural relationships between total quality management, competitive advantage and bottom line financial performance: An empirical study of Malaysian manufacturing companies

Arawati Agus Management Department, Faculty of Business Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, 43600, Malaysia
&
Ridzuan Mohd Sagir Management Department, Faculty of Business Management, Universiti Kebangsaan Malaysia, Bangi, Selangor, 43600, Malaysia
Pages 1018-1024 | Published online: 07 Sep 2007
 
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Abstract

This paper attempts to enhance the understanding of relationship between total quality management (TQM), competitive advantage and bottom line financial performance. In addition, it tries to provide evidence for the notion that TQM has an influence on financial performance. A structural model is tested on data gathered on a stratified random sample of Malaysian manufacturing companies through the application of reliable measures. Results highlight the unique contributions of TQM practices and the significant role of competitive advantage as an intervening variable in the relationship between TQM and financial performance.

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