An empirical test of Deming’s chain reaction model

Abstract

The contributions of W. Edwards Deming to quality management theory and practice cannot be overstated. One important theoretical contribution made by Deming was his Chain Reaction Model, which postulates that the impact of improved quality on financial performance is primarily indirect in nature. Although this important theoretical model is now decades old and has received considerable attention in the practitioner literature, the theorised indirect relationship between improved quality and financial performance has only recently begun to receive empirical testing. Deming’s model is partially tested in the current study utilising a sample of US firms that have been certified by major corporations as having implemented effective TQM practices. The results provide support for Deming’s contention that the impact of improved quality on financial performance is primarily indirect in nature.

Keywords:

• Edwards Deming
• indirect effects
• total quality management

Notes