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Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?

Manufacturing companies in Malaysia have never had it so tough. They are now confronting increasing prices of oil and raw materials, high advancement in innovation and technology, as well as high customer expectation on the quality of products and services. In addition, managers of these companies...

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Main Author: Agus, Arawati
Format: Article
Language:English
Published: Universiti Utara Malaysia 2008
Subjects:
TS Manufactures
Online Access:http://repo.uum.edu.my/589/1/Arawati_Agus.pdf
http://repo.uum.edu.my/589/
http://ijms.uum.edu.my
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spelling my.uum.repo.5892010-09-29T04:27:42Z http://repo.uum.edu.my/589/ Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable? Agus, Arawati TS Manufactures Manufacturing companies in Malaysia have never had it so tough. They are now confronting increasing prices of oil and raw materials, high advancement in innovation and technology, as well as high customer expectation on the quality of products and services. In addition, managers of these companies are well aware of the increasing competitive pressures in the world market. It is clear today that these pressures are due largely to the increased performance of those firms that have successfully implemented quality improvement.This paper presents the findings from an empirical study examining the relationship between quality management (QM) practices and profitability in the electronics and electrical industry in Malaysia. It is said that QM has the potential to not only enhance production efficiency and effectiveness, but also improves bottom-line results. Much has been written about the relationship between QM and performance. However, the link of QM practices to profitability in the electronics and electrical industry in Malaysia has not been fully addressed in empirical studies. To address this issue, this paper investigates the impact of QM practices on profitability in the Malaysian electronics and electrical industry using correlation, multiple regression,and hierarchical regression analyses. The findings revealed that quality measurement, supplier relations, and benchmarking in particular, appear to be of primary importance and exhibit significant impact on profitability. Findings of the study provided a striking demonstration of the importance of implementing effective QM practices for the electronics and electrical industry in Malaysia in enhancing its profitability. However, the study failed to provide the statistical evidence of the existence of the moderating effect of the length of QM adoption on the QM and profitability linkage. Universiti Utara Malaysia 2008 Article PeerReviewed application/pdf en http://repo.uum.edu.my/589/1/Arawati_Agus.pdf Agus, Arawati (2008) Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable? International Journal of Management Studies (IJMS), 15. pp. 1-23. ISSN 0127-8983 http://ijms.uum.edu.my
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic TS Manufactures
spellingShingle TS Manufactures
Agus, Arawati
Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?
description Manufacturing companies in Malaysia have never had it so tough. They are now confronting increasing prices of oil and raw materials, high advancement in innovation and technology, as well as high customer expectation on the quality of products and services. In addition, managers of these companies are well aware of the increasing competitive pressures in the world market. It is clear today that these pressures are due largely to the increased performance of those firms that have successfully implemented quality improvement.This paper presents the findings from an empirical study examining the relationship between quality management (QM) practices and profitability in the electronics and electrical industry in Malaysia. It is said that QM has the potential to not only enhance production efficiency and effectiveness, but also improves bottom-line results. Much has been written about the relationship between QM and performance. However, the link of QM practices to profitability in the electronics and electrical industry in Malaysia has not been fully addressed in empirical studies. To address this issue, this paper investigates the impact of QM practices on profitability in the Malaysian electronics and electrical industry using correlation, multiple regression,and hierarchical regression analyses. The findings revealed that quality measurement, supplier relations, and benchmarking in particular, appear to be of primary importance and exhibit significant impact on profitability. Findings of the study provided a striking demonstration of the importance of implementing effective QM practices for the electronics and electrical industry in Malaysia in enhancing its profitability. However, the study failed to provide the statistical evidence of the existence of the moderating effect of the length of QM adoption on the QM and profitability linkage.
format Article
author Agus, Arawati
author_facet Agus, Arawati
author_sort Agus, Arawati
title Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?
title_short Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?
title_full Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?
title_fullStr Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?
title_full_unstemmed Quality management and profitability linkage: Does the length of QM adoption act as the moderating variable?
title_sort quality management and profitability linkage: does the length of qm adoption act as the moderating variable?
publisher Universiti Utara Malaysia
publishDate 2008
url http://repo.uum.edu.my/589/1/Arawati_Agus.pdf
http://repo.uum.edu.my/589/
http://ijms.uum.edu.my
_version_ 1644277830015516672
score 13.211869

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