Measuring TQM implementation: a case study of Malaysian SMEs

The purpose of this paper is to contribute to the understanding of total quality management (TQM) practices at the small to medium‐sized enterprise (SME) level within the under‐researched context of the Malaysian economy.

Malaysia is an economy that is dependent on SME businesses and the improved performance of these organizations to meet the challenges of the economy in the transition to a modern manufacturing state. Following the extensive literature review and interviews with academics experts in the field of TQM, the objectives of this study were designed. The objectives of this research were to determine differences in performance and the differences in features engaged at high and lower performing businesses. In order to achieve this objective eight purposively selected (three awards winners and five non‐award‐winners) and in‐depth case studies of Malaysian SME were employed.

The findings of this research show those three levels of TQM application starting with quality control, then a broader application of management involvement with quality assurance process and finally a system‐wide application of TQM that involves a high degree of strategic integration of TQM principles. The integration between functional areas in the factory, formalization of activities and clear strategy were present at the TQM businesses and resulted in effective and efficient systems of customer service, operational excellence and human resource integration.

This research focuses on eight SME businesses that employed simple technology such as plastic injection molding and metal stamping. Therefore, the finding of this research could be generalized between similar businesses in similar industries.

This paper provides an understanding of TQM practices offering design advice for professional managers and academia who work within SME businesses. The research also helps to identify and inform areas of government policy that might assist the performance improvement of such firms.

The paper finds that there is a logic and structure to high performance businesses and the application of TQM; the award‐winning companies perform better over their closest rivals. The importance of promoting TQM on a national scale cannot be under‐estimated and could bring a renewed interest to the relationship between TQM implementation and SMEs' improvement.