TQM Adoption and Firm Performance in the Philippines

Abstract

This study looked into the extent of adoption of Total Quality Management (TQM) in the Philippines. Using the Quality Management Input-Output system as the framework of analysis, the study also examined the relationship of TQM adoption on quality, business, and organizational performance of Philippine manufacturing companies. Sixty-four (64) manufacturing companies comprised the sample. Results show that TQM adoption works in a third world environment like the Philippines. TQM adoption was found to be highly associated with performance. Significant improvements in organizational performance were observed indicating the critical role of TQM in influencing human behavior. This study contributes to the body of knowledge on TQM, especially on how it can be a source of competitive advantage.