Impact of TQM and technology management on operations performance

Abstract

This paper examines the impact of Total Quality Management (TQM) and technology management practices on operations performance of manufacturing organizations. This study contributes to the understanding of the co-alignment between TQM and technology management by bridging the gap between the two areas which are often addressed separately. The study also examines the impact of the two practices: TQM and technology management on operations performance which have been considered as the primary sources of competitive advantage. The required data was drawn from 44 Sri Lankan manufacturing organizations and analyzed using the Structural Equation Modeling (SEM) technique followed by a detailed path analysis. The study findings indicate that TQM shows a positive predictive power against operations performance, while technology management has no significant direct relationship on operations performance simultaneously with TQM. The findings also reveal a strong interrelationship between TQM and technology management practices, which shows that the organizations with high TQM, also follow technology management practices in a better way. Along with these relationships, both TQM and technology management have interrelationships among their own components as well.