A meta‐analysis of the effect of TQM on competitive advantage

The purpose of this study is to integrate findings of empirical studies regarding the effect of total quality management (TQM) on competitive advantage. This purpose is to support building a theoretical model of TQM and its components. These components are: top management commitment/leadership, teams, culture, training/education, and process efficiency; they are grounded in the work of Deming and deduced from three other models offered by Dean and Bowen and Reed et al.

This study employed a meta‐analysis to synthesize results of a sample of 51 studies into, effectively, one database. The meta‐analysis approach is used to establish external validity for the theoretical model of TQM used in the paper. The sample includes studies that were conducted in different countries to provide a comprehensive investigation.

Each individual component of TQM was associated with competitive advantage, that these associations each explain roughly 60 percent of the variability in competitive advantage, and that a 1 point change in an average component score (1‐5 Likert scale) results in at least a 0.1 point change in competitive advantage.

The strong correlations between the five components, coupled with the limited sample size, made it impossible to fit a competitive advantage explanation model that included all five components with any statistical significance. Thus, it was not possible to determine the relative impacts of the five components on competitive advantage. Moreover, these limitations made the impact of leadership relative to other variables indeterminate, even in two independent variable models.

Despite the modest findings, this study provides a link between the theory and practice of TQM efforts and provides direction for future research.