Towards a third generation of quality management: Searching for a theoretical re‐conceptualisation of contemporary organisations based on the notions of stakeholders and transactivity

The purpose of this paper is to provide an analysis of the changes that have occurred in Quality Management to demonstrate that a generational change has occurred. It then seeks to establish a firm theoretical basis for the identified change.

The paper is an analysis and critique of the quality management, stakeholder and management literature and is undertaken to identify emergent trends and themes. By questioning the basic assumptions underpinning the literature these trends and themes have been re‐conceptualised into a model that the authors believe helps with interpretation and explanation.

The findings in this paper are that the notion of quality, which has been around for more than a century, appears to be moving into a new phase. Having commenced as an object‐oriented measurement and control device focusing on the quality of the output (of either a product or service), it has experienced a profound expansion and reorientation to now encompass the overall management of the organisation (TQM). This paper suggests that society is now entering a third generation where notions of transparency, accountability and (social) responsibility are blending into the body of knowledge regarding quality management.

The paper elaborates this idea further by exploring the way in which organisations engage with the broader society in which they operate. It also seeks to develop a theoretical understanding of that growing engagement. In doing this it uses the notion of transactivity, which underpins the connections between the organisation and its societal and business context. More importantly, it demonstrates how this notion provides a link between the changing concept of quality management and the increasingly significant notion of stakeholders. It finally aims to demonstrate that a transformed concept of quality management is emerging in which society plays a quintessential part.

The paper provides a perspective on the quality movement that will help people to identify that the many disparate individual developments in the field are in fact part of a wider, fundamental change that has major implications and consequences.