1.1 Background to the study
In the late 1970s and early 1980s, previously unchallenged American industries lost substantial market share in both US and world markets. To regain the competitive edge, companies began to adopt productivity improvement programs which had proven themselves particularly successful in Japan. One of these improvement programs was the total quality management (TQM) (Kaynak, 2003).
Since the 1980s to date, there has been an increasing awareness and implementation of practices associated with TQM as well as other manufacturing practices (Cua, Mckone, & Schroeder, 2001).
We have seen the growing adoption of a range of quality and management systems standards, the emergence of total quality management (TQM), business excellence, performance excellence, Lean thinking and Six Sigma, statistical process control. The battle weary could be excused from taking a rather jaundiced view of this ever-lengthening list of ‘quality’ offers but, by and large, they share many of the principles and elements that are found in TQM (Oakland, 2014).
1.1.1 Concept of Competitive Strategy
The concept of strategy has received much attention in literature and various scholars have defined it in various ways. Chandler (1962) defined strategy as the formulation of basic long term goals and objectives of a firm and the adoption of courses of action and allocation of resources necessary to implement those goals. Mintzberg (1978) on the other hand defined strategy as deliberate plans conceived in advance of making specific decisions or a pattern in a stream of decisions and categorized strategy into ‘realized’ and ‘intended’ perspectives and that it was a possibility for firms not to succeed in strategies they...
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Firms that focus on continuous improvement, involve and motivate employees to achieve quality
output and focus on satisfying customer’s needs and more likely to outperform firms that do not have this focus. Analysis of the data supports a strong positive relationship between the extent of implementation of TQM practices and organization performance. This study also found that co-worker support and organization support moderated the relationship between TQM implementation and organization performance (Joiner, 2007)
2.3.3 Competitive Strategy and Organisation Performance
The link between competitive strategy and performance is a classical theme in strategic management literature, with the main thesis being that organization strategy determines organizational structure, which in turn influences organization performance (Prajogo & Sohal, 2006).
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