Nair2006 PDF

Journal of Operations Management 24 (2006) 948–975
www.elsevier.com/locate/jom
Meta-analysis of the relationship between quality management

practices and firm performance—implications for
quality management theory development
Anand Nair *
Department of Management Science, Moore School of Business, University of South Carolina, Columbia, SC 29208, USA
Received 30 November 2003; received in revised form 2 January 2005; accepted 30 September 2005
Available online 13 December 2005
Abstract
Quality management (QM) has received a high degree of attention in extant literature. Several research papers attribute superior
firm performance to adoption of QM practices. The availability of a large number of research papers that investigate the impact of
QM practices on performance provide an ideal setting for theory extension and refinement using meta-analysis techniques. In this
paper a meta-analytic study is presented that fulfills two objectives. First, the paper formalizes performance implications of
adopting QM practices and present hypothesized relationship between QM practices and performance. Second, a meta-analysis of
correlation (Hunter and Schmidt, 1990) approach is used to examine the empirical research in QM to determine which QM practices
are positively related to improved performance. The study also examines the presence of moderating factors in the association
between QM practices and performance. The results support many hypothesized relationships and also point towards the presence
of moderating factors in almost all QM practice–performance relationships. A discussion of the findings is presented and directions
for further development of QM theory are proposed.
# 2005 Elsevier B.V. All rights reserved.
Keywords: Quality management; Performance; Theory development; Meta-analysis
1. Introduction the underlying practices in QM are fundamental and

essential for effective management and competitive
Quality management (QM) represents one of the survival of organizations. Theory development in this
most significant research themes in operations manage- sphere of organizational practice is important and has
ment. Dean and Bowen (1994) highlight the increased consequences for both academic researchers and
level of interest in QM in many sectors of economy such practitioners. Thus, a close examination of the research
as manufacturing, service, health care, education, and findings associated with QM is critical for furthering
government. Today QM is a widely accepted organiza- knowledge in this area. This meta-analytic study is an
tional goal for several companies. While in the late effort in this direction to gain further insights into the
1980s and early 1990s several quality management performance implications of QM practices.
initiatives such as ‘‘Total Quality Management’’ carried Although QM has only emerged in the management
a faddish element with it, it is now widely believed that literature over the past 15 years, antecedents of the
movement have been in existence for much longer
(McAdam and Henderson, 2004). With the tremendous
* Tel.: +1 803 777 7448. growth of literature in both academic and practitioner-
E-mail address: nair@moore.sc.edu. oriented outlets, the term QM has been diluted to mean
0272-6963/$ – see front matter # 2005 Elsevier B.V. All rights reserved.
doi:10.1016/j.jom.2005.11.005
A. Nair / Journal of Operations Management 24 (2006) 948–975 949
different things and the scope of activities underlying (1999) find that employee commitment, shared vision,
QM lack consensus (Watson and Korukonda, 1995). and customer focus practices are positively related to
Yet, over time in the academic literature the term has performance but ‘‘hard’’ practices such as benchmark-
gained consistency in its meaning. Hackman and ing, cellular work teams, advanced manufacturing
Wageman (1995) highlight the strong evidence of technologies, and close supplier relations do not
convergent and discriminant validity of quality positively contribute to improved performance.
management construct as proposed by its founders. Studies have also highlighted the failure of QM
In a recent paper, commenting on the validity of quality implementations in delivering the desired performance
management, Sousa and Voss (2002, p. 106) conclude benefits. Some of these studies reported estimates of
that, ‘‘QM as espoused by its founders, can be reliably QM failure rates as high as 60–67% (Dooyoung et al.,
distinguished from other strategies for organizational 1998). Fredrickson (1984) found that comprehensive
improvement and there is substantial agreement in the decision-making in QM was negatively related to
literature as to which practices fall under the QM performance in the highly unstable forest product
umbrella’’. The paper provides an excellent account of industry. Researchers have concluded that rational
the present state of quality management research and an comprehensive quality data analysis and information
agenda for future research. The authors suggest that (p. processing is of limited use or even counterproductive
94), ‘‘the agreement in the literature on what under conditions in which multiple problem definitions
constitutes QM indicates that QM as a field has indeed are possible, goals are ambiguous, or uncertainty is
matured and is laid down on solid definitional great (Daft and Lengel, 1986; Daft et al., 1988; Lord and
foundations’’, and assert that while the definitional Maher, 1990; March and Olsen, 1976). Dean and
issues are more or less resolved, there is still a need to Bowen (1994) state that, ‘‘as total quality management
‘‘incrementally build on the already existing base’’ moves from the buffered technical core of manufactur-
(Sousa and Voss, 2002, p. 94). A meta-analysis of the ing toward use in research, marketing, and customer
findings in extant literature can provide impetus to the service activities, such conditions are more likely’’.
incremental theory development activity in QM. This These mixed findings and the need to gain further
meta-analytic study critically and quantitatively exam- insights into generalized QM practices-performance
ines the literature and evaluates the performance link provide motivation for this replication study.
implications of QM practices. Several research articles have explicated the importance
The early stages of empirical research in QM created of replication and its role in the conduct of scientific
instruments capable of measuring QM practices and inquiry (Bornstein, 1990; Brown Gaulden, 1982;
performance constructs (Saraph et al., 1989; Flynn Greenwald, 1975; Leone and Schultz, 1980; Lykken,
et al., 1994; Ahire et al., 1996). These constructs are 1968; Madden et al., 1979; Mahoney, 1987; Mittelstaedt
present in the frameworks used for the national quality and Zorn, 1984; Monroe, 1991, 1992; Neuliep and
awards, such as the Malcolm Baldridge National Crandall, 1990; Reid et al., 1981). Replication research
Quality Award in the US and the European Quality plays an important role in external validation of
Award (Sousa and Voss, 2002). Using these constructs, cause-and-effect relationships (Cook Campbell,
several research studies have examined the link between 1979). Hubbard and Vetter (1996) state that replication
QM practices and performance. Scholars have inves- research aids in ensuring the integrity of a discipline’s
tigated both direct and indirect effects of QM practices empirical results and in contributing to the growth of
on performance. A large body of literature highlights knowledge by guarding against Type I errors (erroneous
the positive implications of QM practices on perfor- rejections of the null hypothesis) and other questionable
mance (see for example, Flynn et al., 1995; Anderson findings and by assessing the robustness and empirical
et al., 1995; Choi and Eboch, 1998; Das et al., 2000; generalizability of results. Easley et al. (2000) assert,
Ahire and Dreyfus, 2000; Cua et al., 2001; Douglas and ‘‘If the goal of science is to produce universal truths,
Judge, 2001; Ho et al., 2001; Kaynak, 2003; Shah and inherent to this goal is the task of adequate theory
Ward, 2003). Mohrman et al. (1995) found that 83% of development and refinement, in which the criterion of
the surveyed companies had a ‘‘positive or very reproducibility should be inextricably intertwined’’.
positive’’ experience with QM, and 79% planned to In line with the underlying objective of a replication
‘‘increase or greatly increase’’ their QM initiatives in study, this paper uses meta-analysis technique to aid
the next 3 years. Meanwhile, studies also find evidence development and refinement of QM theory. Meta-
pointing towards mixed performance implications analysis attempts to establish the reproducibility of
accrued from QM practices. For example, Dow et al. results by synthesizing and integrating existing findings
950 A. Nair / Journal of Operations Management 24 (2006) 948–975
through the use of effect sizes of the phenomena. Books by numerous authors (Garvin, 1986, 1987, 1991,
Research findings are influenced, among other factors, 1993; Crosby, 1979, 1984; Juran, 1988, 1992; Deming,
by sampling errors, unit of analysis, operationalization 1986) provide managerial insights on the effective
of key constructs and the research methodology adopted management of quality. However, as a part of serious
for investigation. This meta-analysis of correlation research efforts, rigorous attempts to measure both
study delves into the published research that links QM quality management practices and their effect on quality
practices and performance to investigate the impact of outcomes began with Krafcik (1988) and Saraph et al.
these factors on the observed relationships. Correlations (1989). Later others like Flynn et al. (1994), Ahire et al.
are the simplest first level associations between two (1996), Black and Porter (1996), to name a few,
variables. Specifically, the meta-analysis of correlation extended the development of validated measures to
in this paper contributes toward answering the follow- capture quality management practices and performance.
ing research questions: This provided a basis for several research studies
published since 1995 that examine the link between QM
- Which QM practices are positively correlated with practices and firm performance.
aggregate firm performance? A review of literature indicated that the studies
- Which QM practices are positively correlated with differed in terms of conceptualizing QM practices and
individual dimensions of performance? firm performance. Several studies operationalized QM
- Are there other moderating factors that influence the as a multi-dimensional construct (Anderson et al., 1995;
relationship between QM practices and performance? Flynn et al., 1995; Mohrman et al., 1995; Powell, 1995;
Adam et al., 1997; Grandzol and Gershon, 1997; Ahire
The paper answers these questions by using the data and O’Shaughnessy, 1998; Forza and Flippini, 1998;
from research studies published between 1995 and Rungtusanatham et al., 1998; Dow et al., 1999; Samson
2004. The emerging theory of QM is extended by and Terziovski, 1999; Das et al., 2000; Wilson and
studying the relationship between commonly examined Collier, 2000; Ho et al., 2001; Kaynak, 2003) while
QM practices—management leadership, people man- others conceptualized it as a single construct (Hendricks
agement, process management, product design and and Singhal, 1996, 1997; Chenhall, 1997, Choi and
management, quality data analysis, supplier quality Eboch, 1998; Easton and Jarrell, 1998; Douglas and
management, and customer focus—and the various Judge, 2001).
dimensions of firm performance, i.e., financial perfor- Performance was also conceptualized differently
mance, operational performance, product quality and across studies. Financial performance, measured in
customer service. By means of empirical generalization terms of growth in market share, profitability, return on
and knowledge development (Hubbard et al., 1998a,b) assets was considered in some studies (Mohrman et al.,
this meta-analytic study of the findings in QM literature 1995; Powell, 1995; Hendricks and Singhal, 1996,
attempts to gain further insights into the QM practice- 1997; Chenhall, 1997; Grandzol and Gershon, 1997;
performance link (Amundson, 1998, p. 355). Easton and Jarrell, 1998; Das et al., 2000; Wilson and
The remainder of the paper is organized as follows. Collier, 2000; Douglas and Judge, 2001; Kaynak,
The next section extensively reviews the relevant 2003). Meanwhile, other studies considered operational
literature, outlines the research objectives and presents performance measured in terms of product/process
the hypotheses of this research. Section 3 describes the quality and inventory performance (Flynn et al., 1995;
meta-analysis research method and explains the Choi and Eboch, 1998; Ahire and O’Shaughnessy,
procedures used in this paper. In Section 4, the results 1998; Forza and Flippini, 1998; Dow et al., 1999;
of meta-analysis are presented and in Section 5 the Samson and Terziovski, 1999; Ho et al., 2001; Kaynak,
findings of the study and the limitations are discussed. 2003) and still others have considered customer
Finally, Section 6 presents the conclusions of this paper satisfaction measures (Anderson et al., 1995; Adam
and provides directions for future research. et al., 1997; Choi and Eboch, 1998; Forza and Flippini,
1998; Rungtusanatham et al., 1998; Wilson and Collier,
2. Empirical studies linking QM and 2000; Das et al., 2000) to capture performance benefits
performance accrued from QM practices. In some studies a multi-
dimensional operationalization of performance is
The literature on quality management can be traced considered (Mohrman et al., 1995; Das et al., 2000;
back to many years and much has been written about Wilson and Collier, 2000) while others considered
QM in books, journal articles and trade press since then. single performance construct (Anderson et al., 1995;
Ahire and O’Shaughnessy, 1998; Rungtusanatham et al., 1996) and manufacturing strategy (Sousa and
et al., 1998; Ho et al., 2001). Voss, 2001). Many other contingent variables such as
The papers also differ in terms of the unit of analysis industry (Maani, 1989; Powell, 1995), time lag of the
and the research methodology used to test hypothesized effectiveness of quality management programs
relationships between QM practices and firm perfor- (Powell, 1995; Ahire et al., 1996), country and
mance. Overall, it is observed that most of the studies cultural issues (Madu et al., 1995), manufacturing
have either focused on manufacturing plant-level data system used (Maani, 1989), and breadth of product
or on firm-level data for investigating the relationship line and frequency of product changes (Kekre
between QM practices and performance. The meth- et al., 1995) are also proposed by researchers who
odologies considered for research investigations examined the relationship between QM practices and
include path analysis (Anderson et al., 1995; Flynn performance.
et al., 1995; Rungtusanatham et al., 1998); regression This meta-analytic study focuses on the generally
analysis (Mohrman et al., 1995; Forker, 1997; Adam accepted direct associations between QM practices
et al., 1997; Ahire and O’Shaughnessy, 1998; Ho et al., and firm performance and tests their validity based on
2001; Douglas and Judge, 2001; Samson and the data obtained from empirical studies published
Terziovski, 1999; Hendricks and Singhal, 2001; Shah between 1995 and 2004. The study also examines the
and Ward, 2003), correlation analysis (Powell, 1995), presence of moderating variables in the relationship.
Wilcoxon signed rank test (Hendricks and Singhal, The following hypotheses examine the relationship
1996, 1997; Easton and Jarrell, 1998), ANOVA/ between QM practices and aggregate performance,
MANOVA (Terziovski et al., 1997; Hendricks and explore the role of the unit of analysis and investigate
Singhal, 2001), discriminant analysis (Cua et al., the presence of moderating effects:
2001), and structural equations modeling (Choi and
H1. QM practices in a manufacturing plant are posi-
Eboch, 1998; Forza and Flippini, 1998; Dow et al.,
tively correlated with aggregate performance.
1999; Ahire and Dreyfus, 2000; Das et al., 2000;
Wilson and Collier, 2000; Kaynak, 2003). These H2. QM practices in a firm are positively correlated
diverse research methodologies, sample characteristics with aggregate performance.
and hypothesized relationships potentially lead to
H3. The correlation between QM practices and aggre-
variations in study findings.
gate performance is influenced by moderating factors.
In general, research studies have argued a direct
relationship between QM practices and performance. At To examine the link more closely the relationship
the same time, there is also evidence of complex cross- between individual QM practices and various perfor-
relations among QM practices in extant literature. mance measures were investigated explicitly. The
Scholars have considered the mediating effects of some hypotheses that study these relationships and explore
QM practices. Some of the QM practices like top presence of moderating effects are presented below:
management leadership are considered to have an
H4. Individual QM practices are positively correlated
indirect effect on performance through their influence
with aggregate performance.
on other QM practices like process management.
However, so far the nature of these indirect and H5. The correlation between individual QM practices
interactive relations among QM practices and perfor- and aggregate performance is influenced by moderating
mance lack generalized agreement among researchers. factors.
Along with the direct link, several research studies
H6. Individual QM practices are positively correlated
have highlighted the presence of contextual variables in
with different performance measures.
the relationship between QM practices and perfor-
mance. Studies such as Benson et al. (1991), Sitkin et al. H7. The correlation between individual QM practices
(1994), Reed et al. (1996), Wilson and Collier (2000), and different performance measures is influenced by
and Sousa and Voss (2002) highlight the role of moderating factors.
organizational context on the link between quality
management practices and performance. The contextual This paper focuses on studies in which the
variables considered include, managerial knowledge, operationalization of QM practices and performance
corporate support for quality, external quality require- constructs is consistent with the validated scales in
ments and product complexity (Benson et al., 1991), studies such as Saraph et al. (1989), Flynn et al. (1994)
organizational uncertainty (Sitkin et al., 1994; Reed and Ahire et al. (1996). Furthermore, the paper
952
Table 1
Summary of articles used for meta-analysis
Paper Sample and unit of analysis Method Operationalizing TQM Operationalization of performance Findings
practices
Flynn et al. 42 plants (respondents: Path analysis Core quality management practices 1. Perceived quality market outcomes Different core quality
(1995) questionnaires were 1. Process flow management (product characteristics like management practices lead
administered to individuals 2. Product design process conformance, reliability, to success in different
with different job titles and 3. Statistical Control/Feedback performance and durability, dimensions of quality
responsibilities in the plant) serviceability, features and and these dimensions
aesthetics) function differently as
2. Percent of items that pass order winners and order
inspection without requiring qualifiers
rework (primarily relates
A. Nair / Journal of Operations Management 24 (2006) 948–975

to conformance
to specifications)
3. Competitive advantage
Quality management
infrastructure practices
1. Customer relationship
2. Supplier relationship
3. Work attitudes
4. Workforce management
5. Top management support
Anderson et al. 41 plants (respondents: Path analysis 1. Visionary leadership Customer satisfaction The results provide support
(1995) questionnaires were 2. Internal and external for most of the proposed
administered to individuals cooperation relationship among TQM
with different job titles and 3. Learning factors and the relationship
responsibilities in the plant) 4. Process management with customer satisfaction
5. Continuous improvement
6. Employee fulfillment
Forza and Flippini 43 plants (respondents: Structural equation TQM practices Quality performance The result suggests that
(1998) plant research coordinators) modeling 1. Orientation towards quality 1. Quality conformity obtaining customer
2. TQM links with customers 2. Customer satisfaction satisfaction requires
3. TQM links with suppliers greater attention to factors
4. Process control that concern downstream
5. Human resources relations with customers.
On the other hand, obtaining
conformance requires
adjustments to process control.
If the control is to be
efficacious, stable inputs are
necessary and this can only be
obtained by means of closer
upstream links with suppliers.
Finally both these paths require
strong orientation towards
quality at the outset
Ahire and 449 manufacturing plants Stepwise multiple 1. Top management commitment Product quality The study highlights the
O’Shaughnessy (respondents: plant managers) regression to quality critical importance of top
(1998) 2. Customer focus management commitment to
3. Supplier quality management the success of TQM efforts
4. Design quality management
5. Benchmarking
6. Statistical process control
7. Internal quality information usage
8. Employee quality training
9. Employee empowerment
10. Employee involvement
strategies
Rungtusanatham 43 plants (respondents: Path analysis 1. Visionary leadership Customer satisfaction Except for some minor

et al. (1998) questionnaires were 2. Internal and external difference, the results of this
administered to individuals cooperation replication study to Anderson
with different job titles and 3. Learning et al. (1995) provide support
responsibilities in the plant) 4. Process management for most of the proposed
5. Continuous improvement relationship among TQM
6. Employee fulfillment factors and the relationship
with customer satisfaction
Choi and Eboch 339 manufacturing Structural equation TQM practices 1. Plant performance TQM practices have a
(1998) companies (respondents: modeling 1. Process quality (i) Quality stronger impact on customer
plant managers) 2. Human resources (ii) Delivery satisfaction than they do on
3. Strategic quality planning (iii) Cost plant performance
4. Information and analysis
2. Customer satisfaction
(i) Quality
(ii) Delivery
(iii) Cost
Dow et al. (1999) 698 manufacturing sites Structural equation Quality practices Quality outcome ‘‘Employee commitment’’,
(respondents: plant managers) modeling (manufacturing practices) 1. The percentage of defects ‘‘shared vision’’, and
1. Workforce commitment at final assembly ‘‘customer focus’’ combine
2. Shared vision 2. The cost of warranty claims to yield a positive correlation
3. Customer focus 3. The total cost of quality with quality outcomes.
4. Use of teams 4. An assessment of the Conversely, other ‘‘hard’’
5. Personnel training defect rate relative quality practices, such as
6. Co-operative supplier relations to competitors ‘‘benchmarking’’, ‘‘cellular
7. Use of benchmarking work teams’’, ‘‘advanced
8. Use of advanced manufacturing technologies’’,
manufacturing systems and ‘‘close supplier relations’’
9. Use of ‘‘Just in Time’’ do not contribute to superior
principles quality outcomes
Samson and 1024 manufacturing sites Multiple regression TQM elements Performance (focuses on quality The results suggest that
Terziovski (1999) (respondents: plant managers) 1. Leadership performance, operational behavioral aspects like
2. People management and business performance leadership, management
3. Customer focus indicators) of people and customer
4. Strategic planning focus were the strongest
5. Information and analysis significant predictors of
953
6. Process management operational performance
954
Table 1 (Continued )
practices
Das et al. (2000) 290 firms (respondents: Structural equation Quality practices Customer satisfaction The result pertaining to quality
quality directors and modeling 1. Supply chain management performance practice’s impact on
vice presidents) practices 1. Customer retention performance suggests that
2. Quality resources and 2. Customer satisfaction quality practices have a
evaluation 3. On-time delivery positive correlation with
3. Quality training Firm performance customer satisfaction
4. Customer commitment 1. Market share performance. International
2. ROA competition was found to
3. Market share increase moderate the relationship
between quality practices
and customer satisfaction

performance
Ahire and 418 manufacturing plants Structural equation TQM elements 1. Internal quality (quality of Design and process management
Dreyfus (2000) (respondents: mid-level modelling 1. Design management finished products assessed before have an equal positive impact on
managers such as quality 2. Quality training shipping and associated internal quality outcomes such
managers, plants managers, etc.) 3. Product design performance process quality) as scrap, rework, defects,
4. Process quality management 2. External quality (quality of performance, and external
finished products from customers’ quality outcomes such as
viewpoint upon field usage) complaints, warranty, litigation,
market share. Contingency
analysis shows that the
proposed model of synergies
between design and process
management holds true for
large and small firms; for firms
with different levels of TQM
experience; and in different
industries with varying levels
of competition, logistical
complexity of
production, or production process
characteristics. The results also
suggest that organizational
learning enables mature TQM
firms to implement both design
and process efforts more
rigorously and their synergy
helps these firms to attain
better quality outcomes
Sun (2000) 251 companies (180 Norwegian Correlation analysis/multiple Quality practices 1. Product quality and customer The paper examines the
companies + 71 Shanghai regression 1. Quality leadership complaint reduction difference in the patterns
companies) (respondents: 2. Quality information 2. Business performance of implementation of TQM
quality managers) 3. Strategic planning of quality (cost, productivity, and profit) practices by Norwegian and
4. Human resources development 3. Market position and Shanghai-based firms. TQM
5. Training of statistical methods competitiveness practices contribute to the
6. Quality assurance of process 4. Employee satisfaction improvement of customer
7. Quality assurance of product 5. Employee protection satisfaction and business
8. Co-operation with suppliers performance. However, the
9. Supplier’s direct involvement results suggest that the
10. Consideration of customers’ practices individually explain
satisfaction only a small part of
11. Benchmarking performance improvement.
12. Close co-operation with Instead, the practices
customers contribute to performance

13. Consideration of employees’ collectively, instead of
satisfaction and wellbeing individually. The findings
14. Consideration of social and support the argument that a
environmental impact TQM program must be
complete in terms of the
content (i.e. all the practices),
the extent (i.e. fully
implemented), and perhaps
also the scope within a firm
(i.e. company-wide)
Curkovic 526 manufacturing facilities Structural equation TQM factors TQM results The results validate the claim
et al. (2000) (respondents: plant managers) modeling 1. TQM strategic systems (includes Includes aspects such as, product that the MBNQA framework
factors such as, leadership, and service quality, productivity does capture the concept of
customer focus, overall and operational effectiveness, Total Quality Management
business planning, etc.) supply quality, etc.
2. TQM operational systems
(includes factors such as, people
management, process management,
product design and management,
supply management, etc.)
3. TQM information systems (includes
factors such as, quality
data analysis,
evaluation, reporting, etc.)
955
956
practices
Martinez-Lorente 223 firms (respondents: Kendall tau-c coefficients TQM dimensions 1. Market share growth The results suggest that the
et al. (2000) quality managers, general 1. Employee relations 2. Unit costs most important TQM
managers, quality department (includes aspects 3. Operational profits dimensions are the system of
representatives, staff members) such as training and the use of employee relations and the use
improvement teams and suggestion of quality management-related
schemes). design tools
2. Organization (includes aspects
such as application of quality
management system standards
and the implementation of total
productive maintenance)

3. Product design process (a well
developed and understood new
product development and design
process and effective co-ordination
amongst the different
departments involved)
4. Quality information (includes system
of internal audits, measurement of
quality management system, review
data and information availability)
5. Supplier relationship
6. Process instruments
(includes use of
appropriate statistical and
non- statistical
tools in continuous
improvement process)
7. Design instruments (use of
appropriate tools and techniques
in the process of designing a new
product and/or a new service)
Cua et al. (2001) 163 plants (respondents: Multiple discriminant 1. Cross functional product design 1. Cost All the discriminant loadings
plant managers) analysis 2. Process management 2. Quality for the superscale TQM on the
3. Supplier quality management 3. Delivery performance measures are
4. Customer involvement 4. Flexibility greater than 0.60 in absolute
5. Weighted performance value and are indicative of a
(weights determined by the strong link between TQM and
strategic importance performance
given by a plant)
Douglas and 193 hospitals (respondents: Hierarchical Regression 1. Top management team involvement Perceived financial performance TQM practices are significantly
Judge (2001) in total 229 respondents, 2. Quality philosophy 1. Growth in earnings related to perceived financial
since for some hospitals 3. Emphasis on TQM-oriented training 2. Growth in revenue performance (for the complete
both CEOs and directors 4. Customer driven 3. Changes in market share model b = 0.26; p < 0.01)
responded, whereas in others 5. Continuous improvement 4. Return on assets
only one of them had responded) 6. Management by fact 5. Long-run level of profitability
7. Total quality methods
TQM practices are not
significantly related to industry
expert rated performance
(b = 0.18)
Industry expert rated measure
(based on audit of 49 standards
related to internal hospital processes
conducted once every three years)
Ho et al. (2001) 25 firms (two respondents Hierarchical regression Supportive TQM factors Quality performance Supportive TQM factors are
per firm, hence 50 survey (two group analysis) 1. Employee relations 1. Performance quality significantly related to
responses were used) 2. Training 2. Reliability quality performance (for the
(respondents: quality managers) 3. Conformance quality two groups b = 0.61; p < 0.001)
4. Durability
Core TQM factors mediate

the effect of supportive
TQM factors on quality
performance
Core TQM factors

1. Quality data and reporting
2. Supplier quality management
Tan (2001) 310 firms (respondents: Structural equation modeling Quality management factor comprising New product design and The results suggest that
senior managers) of eight measures relating to development strategy supplier assessment and
people management, process just-in-time strategies
management, supplier management, were correlated and affected
product design and management the quality management
strategy used, which in
turn influenced the new
product design and
development strategy
Prajogo and 194 firms (respondents: Structural equations modeling 1. Leadership Organizational performance The findings suggest that
Sohal (2003) senior managers) 2. Strategic planning 1. Product quality TQM practices significantly
3. Customer focus 2. Product innovation and positively relates to product
4. Information and analysis 3. Process innovation quality, product innovation
5. People management and process innovation
6. Process management performance. In addition
significant causal relationships
between quality performance
and innovation performance
were found
957
958
practices
Kaynak (2003) 214 firms (respondents: Structural equations 1. Management leadership 1. Financial performance The study identifies relationships
quality managers) modeling 2. Training 2. Quality performance among TQM practices and
3. Employee relations 3. Inventory management examines the direct and indirect
4. Quality data and reporting performance effects of these practices on
5. Supplier quality management Business results (includes performance. The findings
6. Product/service design measures for business suggest that a positive
7. Process management performance, operational relationship exists between
performance and customer the extent to which companies
satisfaction) implement TQM and firm
performance

Lau et al. (2004) 600 firms (452 manufacturing Comparison of means for MBNQA criteria variables The results suggest that firms
firms and 148 service firms) firms that belong to 1. Leadership practicing total quality
(respondents: quality managers) different stages of quality 2. Strategic planning management fared better on
management - inspection, 3. Customer and market focus MBNQA criteria variables
statistical quality control 4. Information and analysis and on business results as
and total quality 5. Human resource focus compared to firms that
management stages 6. Process management practice only inspection or
those that practice only
statistical quality control
Lai (2003) 304 firms (respondents: Correlation analysis Quality management Business performance The results suggest that market
quality managers) 1. People and customer management 1. Motivation performance orientation factors (i.e., market
2. Supplier partnerships 2. Market performance intelligence generation, market
3. Communication of improvement 3. Productivity performance intelligence dissemination,
information 4. Societal performance responsiveness to market
4. Customer satisfaction orientation intelligence) are positively
5. External interface management correlated with quality
6. Strategic quality management management factors and
7. Teamwork structures for improvement business performance
8. Operational quality planning
9. Quality improvement measurement
systems
10. Corporate quality culture
Kontoghiorghes and 189 (respondents: 134 Correlation analysis and Eleven quality indicators Three productivity indicators The results ascertain the close
Gudgel (2004) employees of a manufacturing Step-wise regression analysis association between quality and
facility in Texas and 55 productivity performance. The
employees of a manufacturing quality management variables
facility in Michigan) that were found to be the
strongest predictors of
productivity performance
were those pertaining to
internal process satisfaction,
external customer satisfaction,
and consistent delivery of work
output in a complete fashion
considers studies for which relevant information for

quality management practices
with production costs. Return

correlated with market share.
correlated with management

meta-analysis such as Cronbach’s alpha for the QM
was significantly correlated

was the only construct that
The results suggest that all
significantly and positively
constructs, whereas, return

on assets was significantly
Meanwhile, benchmarking
commitment, coordination
management commitment
on sales was significantly
and people management
practices and performance constructs, correlation
in purchasing except
correlated with only

benchmarking were
coefficients etc. could be obtained either from the

published articles or from the authors by requesting
them via e-mail. Based on the availability of relevant
construct
information, the list of studies considered for meta-
analysis is summarized in Table 1.
3. Meta analysis of correlations

Overall business performance
Meta-analysis of correlations is one of the metho-

dological procedures to systematically analyze the
Production costs
Return on assets
Return on sales
existing literature to refine and extend theory. It enables

Market share
a description of the distribution of actual correlations

between a given independent and a given dependent
variable (Damanpour, 1991). Empirical research is
1.
2.
3.
4.
5.
susceptible to chance variation, differences in research

methods or various errors introduced into the results
and it is important to determine how these ‘artifacts’
have influenced the results and to identify the
Quality-related action programs
1. Management commitment
4. Cooperative relationships
5. Effective evaluation and

monitoring of customer
relationships between variables when those artifacts

other functional areas
3. People management
are removed (White, 1996). Glass (1976) noted that we

2. Coordination with
need methods that integrate results from existing

6. Benchmarking
with suppliers
satisfaction
studies and reveal patterns of relatively invariant

to quality
in purchasing
relations and causalities. The establishment of these

patterns constitutes general principles and cumulative
knowledge.
If all studies were conducted perfectly, then the
distribution of study correlations could be used directly
to estimate the distribution of actual correlations.
Correlation analysis
However, studies are never perfect and thus, the

relationship between study correlations and actual
correlations are more complicated. Correction of these
study imperfections or artifacts requires auxiliary
information such as study sample sizes, study means
and standard deviations, estimates of reliability, and so
on (Hunter and Schmidt, 1990).
At the level of meta-analysis, the first type of
306 firms (respondents:
and Martinez-Lorente (2004) purchasing managers)
artifact that can be estimated and corrected for is the

sampling error. Hunter and Schmidt (1990) suggest
that the sampling error in a particular correlation can
never be changed (and in particular is not changed
when a statistical significance test is run). On the other
hand, if replications of the study could be done, then
sampling error could be reduced. Since the average
error is zero, the replicated correlations could be
Sanchez- Rodriguez
averaged, and the average correlation would be closer

to the population correlation than the individual
correlations. The average correlation has smaller
sampling error in much the same way as a correlation
based on a larger sample size. Thus, replicating
studies could potentially solve the problem of emphasis on shop floor experience and marketing
sampling error. experience for the design team, use of design and
error-proofing techniques, use of quality function
3.1. Significant versus non-significant correlations deployment (QFD) techniques and interdisciplinary
approach to product design; quality data analysis
In an empirical study, both significant and non- includes analysis, evaluation and reporting of quality
significant correlation coefficients among variables are data; supplier quality management construct is used to
reported. There are some inherent problems with represent quality management as well as other relational
looking at the ‘‘significance of correlation’’ in a practices associated with the suppliers and customer
meta-analytic study of correlation (Hunter and Schmidt, focus is used to represent aspects related to customer
1990). As per Hunter and Schmidt (1990), there is a commitment. These constructs are based on the
prevalent misperception concerning ‘‘non-significant’’ commonly suggested measures in extant literature and
correlations in that many believe that non-significant also accords well with the criteria for Malcolm Baldridge
means that no statistical significant finding could be National Quality Award (MBNQA) and European
associated with those variables in that study. The Foundation for Quality Management (EFQM). Firm
authors assert that the size of a correlation is relative to performance is conceptualized in terms of—financial
the context in which it is considered and thus, the partial performance (covers market share growth, profitability,
correlations and beta weights may be much larger than return on assets, etc.), operational performance (covers
zero-order correlations. Examples provided in Hunter aspects associated with inventory performance), product
and Schmidt (1990: p. 29, p. 501) provide further quality (includes conformance quality, design quality,
clarification. In line with this assertion, the meta- reliability, etc.) and customer service.
analytic study in this paper considers the value of It is important to note that the measures underlying
correlation coefficients disregarding their significance the constructs representing QM practices and perfor-
levels. mance could be somewhat different across studies. Yet,
in line with the research synthesis objective that
3.2. Validity of construct operationalization underlies a meta-analytic study it is reasonable to
include these operationalizations in the scope of this
The amount of variation in the independent and study (Cooper, 1998). Webb et al. (1981) present strong
dependent variables included in a meta-analysis should arguments for the value of multiple operationism. They
be dependent on the specific hypotheses, theories and define multiple operationism as the use of many
purposes of the investigator. Glass (1976) states that measures that share a conceptual definition ‘‘but have
there is nothing objectionable about mixing apples and different patterns of irrelevant components’’ (p. 35).
oranges if the focus of the research interest is fruit. Multiple operationism has positive consequences
Hunter and Schmidt (1990) also lend support to this because, ‘‘Once a proposition has been confirmed by
argument. Hence, to the extent the independent and two or more independent measurement processes, the
dependent variables used in the study correspond to the uncertainty of its interpretation is greatly reduced . . .. If
major constructs recognized by researchers in the area a proposition can survive the onslaught of a series of
of QM, the choice of these variables is reasonable. imperfect measures, with all their irrelevant error,
QM has evolved from a narrow focus on statistical confidence should be placed in it’’ (p. 35). Most
process control to encompass a variety of technical and methodologists agree, that multiple realizations of
behavioral methods for improving organizational per- concepts are desirable. Narrow concepts provide little
formance (Dean and Bowen, 1994). A multi-dimensional information about the generality or robustness of the
operationalization of QM practices and firm performance results. Therefore, ‘‘the greater the conceptual breadth
is considered in this study. The construct management of the definitions used in a synthesis, the greater its
leadership is used to capture aspects like leadership, top potential to produce conclusions that are more general
management commitment and vision that were used in than synthesis using narrow definitions’’ (Cooper, 1998,
different studies; people management construct covers p. 37).
work attitudes, training and employee relations; process To eliminate the effect of sampling error, the
management construct considers practices such as use distribution of population correlations were derived
of statistical process control, control charts and from the distribution of observed correlations. Since
standardization of process instructions given to per- sampling error cancels out in the average correlation
sonnel; product design and management covers across studies, the best estimate of the mean population
correlation is simply the mean of the sample correlations. range departure and the reliabilities of both dependent
However, sampling error adds to the variance of the and independent variables are expected to be known.
correlations across studies. Thus, the observed variance Each correlation can then be corrected for both range
must be corrected by subtracting the sampling error departure and error of measurements and a meta-
variance. The difference is then the variance of analytic investigation can be conducted using the fully
population correlations across studies. Once the variance corrected correlations. However, information on arti-
across studies has been corrected for the effect of facts such as range departure is generally not reported in
sampling error, it is possible to see if there is any real research studies. This meta-analytic study used the
variance in results. Detailed information regarding the available information in the sample research articles
analysis is provided in the next two subsections. and focused on correcting the error in sampling
Interested readers can refer Hunter and Schmidt distribution and the error in measurements (obtained
(1990), Damanpour (1991) and Gerwin and Barrowman from the reliability information) of QM practices and
(2002) for additional details about the methodology. firm performance constructs. Specifically, the study
looked for information about sample size, correlation
3.3. Sample between QM practices and firm performance, and
reliability of the constructs.
To obtain a sample for this study, a computer search For studies that contain partial information, an e-
of the ABI/INFORMS database using the Boolean mail request was sent to the authors soliciting the
expression—(total quality management) or (quality required information. An attempt was also made to
management) and (performance)—was conducted. The extract relevant information from the information
search considers a reasonably comprehensive list of available in the study. For example, Samson and
research outlets in which researchers have adopted and Terziovski (1999) do not provide correlation coeffi-
built upon the operationalization of QM practices and cients but instead provide b-coefficients from the
performance constructs presented in studies such as regression analysis. The correlation coefficients were
Krafcik (1988), Saraph et al. (1989), Flynn et al. (1994), obtained by using the basic equation—RYX R1 XX ¼
Ahire et al. (1996) and Black and Porter (1996). b; where RYX ¼ b RYX1 RYX2 . . . c is the correlat-
Specifically, the following journals in the areas of ion matrix
of independent
and dependent variable;
operations management, strategic and general manage- R X X R X X
R1
XX ¼ R
1 1 1 2
is the correlation matrix of
ment and quality management were examined: Acad- X2 X1 RX2 X2
emy of Management Journal, Administrative Science independent variables and b is the regression coeffi-
Quarterly, Decision Sciences, International Journal of cient. In total, relevant information for 23 articles was
Operations & Production Management, International obtained that formed the sample for this meta-analytic
Journal of Production Economics, International Jour- investigation. This sample size compares favorably with
nal of Production Research, International Journal of other such meta-analytic studies (see for example,
Quality and Reliability Management, International Gerwin and Barrowman, 2002).
Journal of Quality Science, Journal of Business,
Journal of Operations Management, Management 3.4. Meta-analytic procedures
Science, Production and Operations Management
and Strategic Management Journal. The meta-analytic procedures used in this study are
The articles were thoroughly examined and those based on the approach suggested in Hunter and Schmidt
articles that empirically analyze the relationship (1990), which has been adopted by other researchers in
between QM practices and performance using percep- their meta-analytic studies (see for example, Daman-
tual data were considered. At this stage those papers that pour, 1991; Gerwin and Barrowman, 2002). The meta-
were conceptual or were based on anecdotal evidence or analysis was conducted in two stages and the
evidence based on a single case study were eliminated. hypotheses testing were guided by the heuristics
In the next step, each paper was reviewed to check if it suggested in Hunter and Schmidt (1990). The details
considers an explicit investigation of the QM practices– of the stages and the heuristics are as follows.
performance link. The adequacy of information
provided in the articles for conducting the meta- 3.4.1. Stage-I
analysis was also examined at this stage. In an ideal In this stage, hypotheses H1–H3 were tested. As a
research review, complete information about artifacts first step, the correlation between QM practices and
on each study is available. For each study the extent of performance was investigated at an aggregate level to
Table 2
Stage-I data
Study N Ta Pa r
Flynn et al. (1995) 42 0.84 0.75 0.21
Anderson et al. (1995) 41 0.76 0.82 0.30
Forza and Flippini (1998) 43 0.81 1 0.62
Ahire and O’Shaughnessy (1998) 449 0.84 0.93 0.35
Rungtusanatham et al. (1998) 43 0.80 0.67 0.39
Choi and Eboch (1998) 339 0.78 0.65 0.27
Dow et al. (1999) 698 0.79 0.62 0.09
Samson and Terziovski (1999) 1024 0.78 0.67 0.27
Sun (2000) 251 0.89 0.95 0.33
Das et al. (2000) 290 0.75 0.71 0.29
Ahire and Dreyfus (2000) 418 0.81 0.87 0.48
Curkovic et al. (2000) 269 0.75 0.87 0.13
Martinez-Lorente et al. (2000) 223 0.75 0.42 0.17
Douglas and Judge (2001) 229 0.93 0.9 0.28
Ho et al. (2001) 50 0.88 0.84 0.61
Tan (2001) 310 0.92 0.91 0.38
Prajogo and Sohal (2003) 194 0.81 0.88 0.38
Kaynak (2003) 214 0.89 0.87 0.27
Cua et al. (2001) 163 0.89 0.84 0.75
Lau et al. (2004) 600 0.89 0.93 0.63
Lai (2003) 304 0.95 0.89 0.55
Kontoghiorghes and Gudgel (2004) 189 0.90 0.74 0.5
Sanchez-Rodriguez and Martinez-Lorente (2004) 306 0.75 0.64 0.18
N: sample size; Ta: TQM reliability; Pa: performance reliability; r: TQM-performance sample correlation.
pffiffiffiffiffiffipffiffiffiffiffiffi
examine the presence of positive associations and (Hunter and Schmidt, 1990): A ¼ rxx ryy : The
moderating effects. The sample was split based on the weights attached to each study are related to the sample
unit of analysis to examine if there are differences in the size (N) and the compound attenuation factor (A) by
relationship between QM practices and performance. the following formula (Hunter and Schmidt, 1990):
As suggested in Hunter and Schmidt (1990), for studies W = N A2. The error variances (e) depends on
that provide reliabilities at the level of individual weighted sample mean correlation across studies ðr̄Þ :
dimensions of a construct, the values were averaged to e ¼ ð1 r̄2 Þ= ððN 1ÞA2 Þ.
obtain composite reliability of the QM practices and
firm performance constructs. Similarly, to obtain the 3.4.2. Stage-II
overall correlation the sample correlations were Hypotheses H4–H7 were tested in this stage.
averaged among individual QM practices and perfor- Studies that use plant-level and firm-level data were
mance. The data used at this stage is presented in combined. First the correlation and moderating effects
Table 2. between individual QM practices (management lea-
Under most conditions, the effect of each correct- dership, people management, process management,
able artifact is to reduce the correlation by an amount product design and management, quality data analysis,
that can be quantified as a multiplicative factor less supplier quality management and customer focus) and
than 1.00, called ‘‘attenuation factors’’ (Hunter and aggregate firm performance were examined. Subse-
Schmidt, 1990). The compound attenuation factor for quently, the scope of analysis was expanded by
each study was computed. In this paper, the attenuation segregating the sample data based on performance
factor relates to the error in measurement of the measures—financial performance, operational perfor-
constructs. The compound attenuation factors were mance, product quality, and customer service. Meta-
obtained by multiplying the square roots of reliabilities analyses were conducted within each subset of studies
of the QM practice and firm performance constructs. to reveal how much of residual variance within subsets
Specifically, if the reliability of QM practice is rxx is due to sampling error and how much is real. The data
and the reliability of performance is ryy, then the used for stage II investigations is presented in
compound attenuation factor can be expressed as Tables 3–6.
Table 3
Relationship between TQM practices and financial performancea
Study number N Ta FPa r r0 W
Management leadership
Douglas and Judge (2001) 229 0.92 0.9 0.33 0.363 189.612
Kaynak (2003) 214 0.92 0.89 0.264 0.292 175.223
Sanchez-Rodriguez and Martinez-Lorente (2004) 306 0.741 0.653 0.125 0.18 148.065
People management
Das et al. (2000) 290 0.823 0.676 0.224 0.300 161.341
Kaynak (2003) 214 0.905 0.89 0.174 0.194 172.366
Process management
Kaynak (2003) 214 0.78 0.89 0.256 0.307 148.559
Product design and management
Only Kaynak (2003) had relevant information and thus the data was not sufficient for analysis
Quality data analysis
Das et al. (2000) 290 0.868 0.676 0.345 0.450 170.163
Kaynak (2003) 214 0.9 0.89 0.287 0.321 171.414
Supplier quality management
Das et al. (2000) 290 0.596 0.676 0.279 0.440 116.839
Kaynak (2003) 214 0.86 0.89 0.244 0.279 163.796
Customer focus
Das et al. (2000) 290 0.708 0.676 0.386 0.558 138.796
N: sample size; Ta: TQM reliability; FPa: financial performance reliability; r: TQM-performance sample correlation; r0 : TQM-performance
corrected correlation; W: weight of the study obtained by multiplying sample size with attenuation factors.
a
The values are rounded-off to three decimal points.
3.5. Heuristics to guide hypotheses testing estimates of population variance S2r were obtained by
using the values of the variance of corrected sample
Similar to the approach adopted in Gerwin and correlation S2r0 and the corrected estimate of the
Barrowman (2002), the two heuristics developed by sampling error variability S2e : S2r ¼ S2r0 S2e.)
Hunter and Schmidt (1990) were used to guide the
analysis in this paper. First, when RATIO1 4. Results
(RATIO1 ¼ r̄0 =Sr ; where r̄0 is the average of the
corrected correlation and Sr is the estimate of the The correlation between r (the correlation coefficient
population standard deviation) is greater than or equal in the sample) and r (the estimate of the population
to 2, it is reasonably safe to conclude that the population correlation coefficient) was evaluated for the complete
correlations are not lesser than or equal to zero. A value sample of studies considered in this meta-analytic
greater than 2 therefore implies that a positive investigation. Hunter and Schmidt (1990) suggest that
correlation exists between the variables considered. one can compute the ‘‘reliability’’ needed for use in the
Second, when RATIO2 (RATIO2 = S2e =S2r0 , where S2e is attenuation formula by examining the ratio of variance
the corrected estimate of the sampling error variability of estimated population correlation and the variance of
and S2r0 is the corrected estimate of the study correlation corrected correlation (‘‘reliability’’ = S2r =S2r0 ). This
variability) is greater than or equal to 0.75, it is value determines approximately how much variation
reasonably safe to conclude there is just one population in sample correlation can be attributed to artifacts. The
correlation. If RATIO2 is less than 0.75, it can be value for ‘‘reliability’’ in this study is 0.892 implying
reasoned that moderators exist. (Note: for RATIO1, that only about 11% of the variance of the correlations
Table 4
Relationship between TQM practices and operational performancea
Study N Ta OPa r r0 W
Flynn et al. (1995) 42 0.88 0.74 0.51 0.632 27.350
Choi and Eboch (1998) 339 0.92 0.73 0.09 0.110 227.672
Kaynak (2003) 214 0.92 0.855 0.311 0.351 168.332
People management
Flynn et al. (1995) 42 0.955 0.74 0.425 0.506 29.681
Choi and Eboch (1998) 339 0.78 0.73 0.13 0.172 193.027
Kaynak (2003) 214 0.905 0.855 0.309 0.351 165.588
Lai (2003) 304 0.8 0.89 0.58 0.687 216.448
Process management
Flynn et al. (1995) 42 0.825 0.74 0.45 0.576 25.641
Choi and Eboch (1998) 339 0.69 0.73 0.13 0.183 170.754
Kaynak (2003) 214 0.78 0.855 0.292 0.358 142.717
Flynn et al. (1995) 42 0.89 0.74 0.46 0.567 27.661
Kaynak (2003) 214 0.93 0.855 0.327 0.366 170.162
Flynn et al. (1995) 42 0.76 0.74 0.52 0.693 23.621
Choi and Eboch (1998) 339 0.71 0.73 0.13 0.181 175.704
Kaynak (2003) 214 0.9 0.855 0.183 0.208 164.673
Lai (2003) 304 0.88 0.89 0.625 0.706 238.093
Flynn et al. (1995) 42 0.74 0.74 0.25 0.338 22.999
Kaynak (2003) 214 0.86 0.855 0.339 0.395 157.354
Lai (2003) 304 0.73 0.89 0.404 0.501 197.509
Customer focus
Flynn et al. (1995) 42 0.66 0.74 0.36 0.515 20.513
Lai (2003) 304 0.77 0.89 0.549 0.663 208.331
N: sample size; Ta: TQM reliability; OPa: operational performance reliability; r: TQM-performance sample correlation; r0 : TQM-performance
a
was due to artifacts and a large percent of variance in correlations were normally distributed, the probability
performance can be attributed to QM practices. of a zero correlation or below zero correlation still
Hypotheses H1 and H2 were tested by splitting the exists. The qualitative nature of the relationship is not
complete set of studies into sub-samples based on the yet clear, and it cannot be confirmed that the
unit of analysis, i.e., studies using plant-level data and population correlation is positive in all studies. This
studies using firm-level data. For these sub-samples implies that at an aggregate level QM practices at the
RATIO1 and RATIO2 were computed. The results are plant level are not necessarily positively correlated to
reported in Tables 7A and 7B. The value of RATIO1 in performance. Meanwhile, for the sample using firm-
the sample corresponding to plant-level data is 1.855. level data, RATIO1 = 3.205. Since, this value is greater
Since the value is less than the cut-off value of 2 the than the cut-off value of 2 it can be concluded that at
conclusion that the population correlations are strictly firm level, QM practices are positively correlated with
greater than zero cannot be made. It is inferred that the aggregate performance. Hence, the study finds support
mean correlation is nearly 1.855 standard deviations for hypothesis H2 but fails to find support for
above 0 and therefore if the study population hypothesis H1.
Table 5
Relationship between TQM practices and customer servicea
Study N Ta CPa r r0 W
Anderson et al. (1995) 41 0.860 0.821 0.57 0.678 28.955
Rungtusanatham et al. (1998) 43 0.77 0.67 0.453 0.631 22.184
Choi and Eboch (1998) 339 0.92 0.73 0.43 0.525 227.672
People management
Anderson et al. (1995) 41 0.853 0.821 0.1 0.12 28.699
Das et al. (2000) 290 0.823 0.735 0.175 0.225 175.422
Process management
Anderson et al. (1995) 41 0.763 0.821 0.3 0.379 25.68
Choi and Eboch (1998) 339 0.69 0.73 0.35 0.493 170.754
No study relate product design and management with customer service
Choi and Eboch (1998) 339 0.71 0.73 0.41 0.569 175.704
Das et al. (2000) 290 0.868 0.735 0.251 0.314 185.014
Anderson et al. (1995) 41 0.86 0.821 0.21 0.25 28.932
Das et al. (2000) 290 0.596 0.735 0.183 0.276 127.037
Customer focus
Forza and Flippini (1998) 43 0.885 0.91 0.727 0.810 34.630
Das et al. (2000) 290 0.708 0.735 0.295 0.409 150.910
N: sample size; Ta: TQM reliability; CPa: customer service reliability; r: TQM-performance sample correlation; r0 : TQM-performance corrected
correlation; W: weight of the study obtained by multiplying sample size with attenuation factors.
a
The value of RATIO2 for the sample of studies using 4.1. Management leadership
plant-level data is 0.079. For the sample of studies
using firm-level data, RATIO2 is 0.141. Since, both The value of RATIO1 for the relationship between
these values are lower than the cut-off value of 0.75, it management leadership and aggregate firm perfor-
can be concluded that moderators exist in the mance is 3.862. Since the value is greater than the cut-
relationship between QM practices and aggregate off value of 2 it can be concluded that the population
performance irrespective of the unit of analysis. This correlation between management leadership and aggre-
lends support to hypothesis H3. gate firm performance is strictly greater than zero.
In Table 8, the studies that focus on various Qualitatively, this suggests that management leadership
performance measures are categorized by individual is positively correlated with aggregate firm perfor-
QM practices. The aggregate sample sizes and mance. The value of RATIO2 = 0.093 is less than the
computed error variances are reported in the table. cut-off value of 0.75 and it can be concluded that other
The sample correlations and the corrected correlations organizational variables moderate the impact of
reported in this table are the mean correlation of management leadership on aggregate firm performance.
individual studies presented in Tables 3–6. RATIO1 and The correlation of management leadership with
RATIO2 were computed for each QM practice and individual performance measures was evaluated next.
performance relationships to test hypotheses 4–7. The The values of RATIO1 for management leadership’s
details are presented in the following sections. correlation with financial performance (3.368), customer
Table 6
Relationship between TQM practices and product qualitya
Study N Ta PQPa r r0 W
Flynn et al. (1995) 42 0.88 0.75 0.59 0.726 27.72
Ahire and O’Shaughnessy (1998) 449 0.857 0.934 0.4 0.447 359.397
Dow et al. (1999) 698 0.795 0.623 0.188 0.267 345.709
Prajogo and Sohal (2003) 194 0.858 0.881 0.409 0.470 146.655
People management
Flynn et al. (1995) 42 0.955 0.75 0.42 0.496 30.083
Dow et al. (1999) 698 0.83 0.623 0.046 0.064 360.929
Ahire and Dreyfus (2000) 418 0.74 0.87 0.465 0.580 269.108
Ho et al. (2001) 50 0.898 0.84 0.61 0.703 37.695
Process management
Flynn et al. (1995) 42 0.89 0.75 0.42 0.496 30.083
Flynn et al. (1995) 42 0.89 0.75 0.4 0.490 28.035
Dow et al. (1999) 698 0.83 0.623 0.046 0.064 360.929
Flynn et al. (1995) 42 0.76 0.75 0.39 0.517 23.94
Dow et al. (1999) 698 0.61 0.623 0.051 0.083 265.261
Flynn et al. (1995) 42 0.74 0.75 0.45 0.604 23.31
Dow et al. (1999) 698 0.725 0.623 0.063 0.094 315.269
Customer focus
Flynn et al. (1995) 42 0.66 0.75 0.23 0.327 20.79
Dow et al. (1999) 698 0.755 0.623 0.247 0.360 328.315
N: sample size; Ta: TQM reliability; PQPa: product quality performance reliability; r: TQM-performance sample correlation; r0 : TQM-performance
a
service (3.938) and product quality (2.556) are greater association of management leadership with the four
than the cut off value of 2. It can thereby be concluded performance measures.
that management leadership is positively correlated with
these performance dimensions. The value of RATIO1 for 4.2. People management
the correlation between management leadership and
operational performance is 1.796. Since, this value is The value of RATIO1 for aggregate performance
lower than the cut-off; the study fails to find support for (4.933) confirms its positive correlation with people
the hypothesis linking management leadership and management. The value of RATIO2 is 0.152 and since
operational performance. The values of RATIO2 for it is less than the cut off value of 0.75, it can be
financial performance (0.199), operational performance concluded that the correlation obtained between people
(0.030), customer service (0.077) and product quality management and aggregate performance is moderated
(0.021) suggest that moderating factors influence the by other variables.
Table 7A
Stage-I meta-analysis results (studies using plant-level data)
Study N r r0 e W
Cua et al. (2001) 163 0.755 0.904 0.0073 113.648
Ahire and Dreyfus (2000) 418 0.475 0.567 0.0028 293.655
Dow et al. (1999) 698 0.093 0.133 0.0024 341.844
Samson and Terziovski (1999) 1024 0.268 0.369 0.0015 539.373
Ahire and O’Shaughnessy (1998) 449 0.335 0.378 0.0024 353.232
Rungtusanatham et al. (1998) 43 0.39 0.532 0.0368 23.0967
Choi and Eboch (1998) 339 0.273 0.385 0.0049 171.209
Anderson et al. (1995) 41 0.302 0.381 0.0331 25.707
Curkovic et al. (2000) 169 0.131 0.163 0.0069 109.838
Kontoghiorghes and Gudget (2004) 189 0.5 0.611 0.0060 126.682
RATIO1 = sample mean/(S.D. of population correlations) = 1.855; RATIO2 = error variance/variance of corrected sample correlation = 0.0789.
The value of RATIO1 for the financial performance Hence, it can be concluded that process management
dimension (8.658) and for the operational performance is positively correlated with aggregate performance.
dimension (2.312) are greater than 2.00 implying that The value of RATIO2 is 0.293. Since the value is less
people management is positively correlated to these than 0.75, it can be concluded that moderators influence
performance dimensions. Meanwhile, the values of the relationship between process management and
RATIO1 for customer service (1.515) and product aggregate performance.
quality (1.630) are less than the cut-off value of 2, At the level of individual performance measures,
thereby failing to indicate a positive correlation the results suggest that process management is
between people management and product quality and positively correlated with financial performance
between people management and customer service. (RATIO1 = 11.433) and customer service (RATIO1 =
RATIO2 is observed to be lower than 0.75 for financial 14.475). However, with operational performance
performance (0.602), operational performance (0.027), (RATIO1 = 1.953) and product quality (RATIO1 =
customer service (0.035) and product quality (0.008). 1.833) the study fails to conclude a positive corre-
These values indicate that moderators do exist in the lation. The values for RATIO2 of process management
relationship between people management and all and the individual performance measures—financial
performance measures. performance (RATIO2 = 0.835), operational perform-
ance (RATIO2 = 0.062), customer service (RATIO2 =
4.3. Process management 0.799) and product quality (RATIO2 = 0.0146)—
indicate that moderating factors influence relation-
RATIO1 for the relationship between process ship of process management with operational
management and aggregate performance is 5.764. performance and product quality but not for the
Table 7B
Stage-I meta-analysis results (studies using firm-level data)
Study N r r0 e W
Kaynak (2003) 214 0.273 0.312 0.0051 164.270
Douglas and Judge (2001) 229 0.28 0.306 0.0043 191.673
Ho et al. (2001) 50 0.61 0.711 0.023 36.855
Das et al. (2000) 290 0.292 0.401 0.0054 153.191
Sun (2000) 251 0.334 0.364 0.0036 211.199
Lau et al. (2004) 600 0.633 0.695 0.0015 496.969
Prajogo and Sohal (2003) 194 0.377 0.445 0.0054 139.283
Lai (2003) 304 0.546 0.594 0.0029 257.032
Tan (2001) 310 0.384 0.421 0.0029 257.549
Martinez-Lorente et al. (2000) 223 0.173 0.308 0.0107 70.395
Sanchez-Rodriguez and Martinez-Lorente (2004) 306 0.181 0.263 0.0052 145.473
RATIO1 = sample mean/(S.D. of population correlations) = 3.205; RATIO2 = error variance/variance of corrected sample correlation = 0.141;
N: sample size; r: TQM-performance sample correlation; r0 : TQM-performance corrected correlation; e: error variance; W: weight of the study
obtained by multiplying sample size with attenuation factors.
Table 8
Overall meta-analysis of correlation result
TQM factors n N r r0 e RATIO1 RATIO2
Aggregate performance 3.862 0.093
Financial performance 3 789 0.240 0.278 0.0017 3.368 0.199
Operational performance 4 901 0.305 0.384 0.0014 1.796 0.030
Customer service 4 729 0.422 0.547 0.0016 3.938 0.077
Product quality 4 1383 0.397 0.478 0.0008 2.556 0.021
People management
Product quality 6 1851 0.365 0.429 0.00059 1.630 0.008
Process management
Product quality 4 1103 0.383 0.456 0.0009 1.833 0.015
Financial performance 1 Insufficient data for analysis
Customer service 1 Insufficient data for analysis
Product quality 4 1607 0.224 0.263 0.0008 1.133 0.015
Product quality 4 1383 0.282 0.350 0.0010 1.905 0.030
Product quality 3 1189 0.308 0.390 0.0012 1.485 0.017
Customer focus
Product quality 4 1383 0.319 0.406 0.00098 4.799 0.121
N: sample size; r: TQM-performance sample correlation; r0 : TQM-performance corrected correlation; e: error variance; W: weight of the study
obtained by multiplying sample size with attenuation factor.
relationship of process management with financial product design and management is positively corre-
performance and customer service. lated with aggregate performance. The value of
RATIO2 is 0.443, suggesting the presence of mode-
4.4. Product design and management rating variables.
This study could not examine the relationship of
With aggregate performance, the value of RATIO1 product design and management with financial perfor-
is 1.340 and hence it cannot be concluded that mance and customer service due to insufficient number
of papers investigating these relationships. It was duct quality (RATIO1 = 1.485). The values of RATIO2
observed that product design and management was for financial performance (RATIO2 = 0.082), opera-
positively correlated with operational performance tional performance (RATIO2 = 0.246), customer ser-
(RATIO1 = 3.657), but with RATIO1 equal to 1.133 vice (RATIO2 = 0.041) and product quality
the study fails to conclude a positive correlation (RATIO2 = 0.017) are all lower than the cut-off value
between product design and management and customer of 0.75 and hence it can be inferred that moderators
service. Evaluation of the values of RATIO2 reveal that exist in the relationship between supplier quality
they are less than 0.75, suggesting that moderating management and performance dimensions.
variables exist in the relationship of product design and
management with operational performance and custo- 4.7. Customer focus
mer service.
Finally, for the QM measure of customer focus and
4.5. Quality data analysis its correlation with aggregate performance the study
finds the value of RATIO1 to be 5.074. This suggests
For the relationship between quality data analysis that customer focus is positively correlated with
and aggregate performance the value of RATIO1 is aggregate performance. The value of RATIO2 is
7.908, providing evidence of a positive correlation. The 0.158, indicating the presence of moderating factors.
value of RATIO2 is 0.358 and therefore it can be Customer focus was found to be positively correlated
inferred that moderating effects do exist in the with financial performance (RATIO1 = 3.210), opera-
relationship between quality data analysis and aggre- tional performance (RATIO1 = 6.659), customer service
gate performance. (RATIO1 = 2.183), and product quality (RATIO1 =
At the level of individual performance measures, 4.799). Examination of moderator effect using RATIO2
the study finds that quality data analysis is positively suggests that the relationship between customer focus
correlated with customer service (RATIO1 = 3.081). and individual performance measures—financial perfor-
However, this study fails to find support for the mance (RATIO2 = 0.071), operational performance
relationship of quality data analysis with financial perf- (RATIO2 = 0.286), customer service (RATIO2 = 0.031),
ormance (RATIO1 = 1.910), operational performance and product quality (RATIO2 = 0.121)—are moderated
(RATIO1 = 1.615) and product quality (RATIO1 = by other variables.
1.905). Examination of the values of RATIO2 reveal Overall the results suggest that except for product
that they are lower than 0.75 for financial performance design and management, all other QM practices are
(RATIO2 = 0.050), operational performance (RATIO2 = positively correlated with aggregate performance lending
0.015), customer service (RATIO2 = 0.084) and a strong support for hypothesis H4. The results also
product quality (RATIO2 = 0.030). Hence, it can be suggest that moderating factors influence all relation-
concluded that moderating factors influence the rela- ships between QM practices and aggregate performance.
tionship between quality data analysis and all perfor- This provides strong evidence in support of hypothesis
mance measures considered in this study. H5. Four QM practices (management leadership, people
management, process management, and customer focus)
4.6. Supplier quality management were correlated with financial performance; four QM
practices (people management, product design and
For aggregate performance the value of RATIO1 is management, supplier quality management, and custo-
10.627, which suggests that supplier quality manage- mer focus) were correlated with operational perfor-
ment is positively correlated with aggregate performance; four QM practices (management leadership,
mance. The value of RATIO2 is 0.605 and hence it can process management, quality data analysis, and customer
be concluded that moderating factors influence the focus) were correlated with customer service and two
relationship between supplier quality management and QM practices (management leadership and customer
performance. focus) were correlated with product quality. These
At individual performance level supplier quality findings point towards a partial support for hypothesis
management is positively correlated with operational H6. Moderating factors influenced all relationships
performance (RATIO1 = 5.676) but the study fails to between individual QM practices and performance
conclude a positive correlation between supplier quality dimensions (except the relationship of process manage-
management and financial performance (RATIO1 = ment with financial performance and customer service)
1.848), customer service (RATIO1 = 1.404) and pro- providing a strong support for hypothesis H7.
5. Discussion However, similar to some other studies (see for

example, Rungtusanatham et al., 1998) the results fail
In this section, the results pertaining to the link to find a relationship between people management and
between QM practices and performance and the role of customer service. The results also could not confirm the
moderators are discussed. The section also presents the conclusion in Ahire et al. (1996, p. 43) that product
limitations of this meta-analytic study. quality is closely affected by ‘‘quality-oriented human
resource management’’.
5.1. QM practices and performance Process management was positively associated with
aggregate performance, and with financial and customer
The goal of this meta-analytic study was to critically service measures of performance. Notably, the results
examine the relationship between QM practices and fail to find a relationship of process management with
performance. The analysis provides some insight into operational performance and product quality. This
the practice-performance link. Similar to the observa- provides support to the reasoning in Samson and
tions in several other extant studies (e.g. Douglas and Terziovski (1999) that infrastructure practices such as
Judge, 2001; Flynn et al., 1995; Kaynak, 2003; Samson management leadership, people management etc.
and Terziovski, 1999), the results suggest that a large explain much of the variation in performance as against
variance in aggregate performance can be attributed to the core practices like process management.
QM practices. This reaffirms the role of QM practices in The results fail to find a positive association of product
improving performance. The results also highlight the design and management with aggregate performance.
importance of the unit of analysis in QM practice- This meta-analytic investigation could not examine the
performance link. While for firm level data, the analysis nature of association of product design and management
reveals a positive relationship between QM practices practices with financial performance and customer
and aggregate performance, the evidence of a positive satisfaction due to the paucity of papers that study this
association was lacking in plant level data. link. Operational performance measure was found to
Management leadership was positively related to have a direct positive association with product design and
aggregate performance. It was also found to be management practices but interestingly the study fails to
positively related to all measures of aggregate find a direct relationship between product design
performance except the operational performance and management and product quality. Product design
measure. Similar findings can be found in other and management practices are aimed at improving
research studies (for example, Adam et al., 1997; design quality and in ensuring design for manufactur-
Powell, 1995; Samson and Terziovski, 1999). Manage- ability (Flynn et al., 1995; Handfield et al., 1999).
ment leadership fosters change in an organization Scholars have argued that almost 80% of the manu-
through continuous improvement and open commu- facturing costs are determined at the design stage
nication (Kaynak, 2003) and this potentially explains (Sisodia, 1992; Ulrich and Pearson, 1998) and these
the improvement in financial performance, customer manufacturing costs are an important component of a
service and product quality. At the same time, research firm’s operational performance. The results in this
studies have observed that management leadership study substantiate this important link between product
improves performance indirectly through its influence design and management and operational performance.
on other QM practices (Ahire and O’Shaughnessy, The lack of relationship between product design and
1998; Anderson et al., 1995; Flynn et al., 1995; Wilson management and product quality is intriguing and
and Collier, 2000). This could possibly explain the lack provides motivation for further investigations into
of direct positive relationship between management potential contingencies, indirect associations and inter-
leadership and operational performance. Future studies action effects.
are needed to examine the nature of indirect relationship Supplier quality management was positively asso-
between management leadership and operational ciated with aggregate performance and the operational
performance. performance measure. It can be reasoned that with an
The results suggest a positive relationship of people increasingly supply chain oriented business environ-
management with aggregate performance, financial ment, improvements targeted at the supplier0 s end such
performance and operational performance. This reaf- as supplier quality management are important for
firms the importance attributed to human resource improved operational performance. This study however
management component of QM practices in several could not confirm direct relationship between supplier
studies (Powell, 1995; Samson and Terziovski, 1999). quality management and other performance measures.
Further studies are needed to examine the direct and QM practices and performance and this substantiates
indirect links of supplier quality management with the claim in several research studies. As an example,
financial performance, customer service and product Douglas and Judge (2001) found strong support for the
quality. moderating influences of organizational structure on
Quality data analysis involves using quality infor- QM implementation effectiveness. Specifically, two
mation tools such as statistical process control and cost measures of organizational structure—control and
of quality measures. The results suggest that these exploration—were found to offer independent and
activities were positively associated with aggregate interdependent influences on the financial performance
performance and customer service. However, the study of firms implementing QM programs.
could not find a direct relationship of quality data Interaction effects and interrelationship might also
analysis with financial performance, operational per- exist among QM practices and between the various
formance and product quality. Other indirect causal performance dimensions. Sousa and Voss (2002) assert
paths, such as the effect through other QM practices (see that it is these interaction effects that distinguish
for example, Kaynak, 2003) that link quality data successful companies from others. The infrastructure
analysis with these performance measures need to be practices like management leadership, customer focus,
explored in future research. supplier relationship, and people management interact
Finally, customer focus was positively related to with the core practices like process management,
aggregate performance and all individual measures of product design and management, and quality data
performance. Other studies have also observed the analysis to create the inimitable capability. These
positive relationship between customer focus and moderating factors explain the lack of evidence of a
performance (see for example, Ahire and O’Shaugh- significant relationship between some quality manage-
nessy, 1998; Grandzol and Gershon, 1997; Samson and ment practices and performance in large-scale empirical
Terziovski, 1999). Customer focus relates to an studies (e.g. Powell, 1995; Dow et al., 1999; Samson
organization’s commitment to determine and meet and Terziovski, 1999).
current and emerging customer requirements and Presently, very few survey-based empirical studies
expectations, to provide effective customer relationship examine the role of contextual variables in the
management and to ensure customer satisfaction (Das effectiveness of QM practices on performance (Benson
et al., 2000; Samson and Terziovski, 1999). It can be et al., 1991; Sousa and Voss, 2001). The research in
reasoned that investments in customer complaints context-dependence of QM is gaining momentum,
evaluation and expectation monitoring systems enable albeit at a slow pace. The research findings in this study
better design of products and processes, thereby pertaining to the presence of moderating factors in the
improving product quality and operational perfor- relationship between QM practices and performance
mance. A focus on meeting and exceeding customer present a promising avenue for future research. Future
expectations allows firms to achieve improved financial studies should identify the potential contextual vari-
performance and customer satisfaction. Evidence of a ables and explicitly consider the role of moderators in a
direct relationship between customer focus and all QM context. In the words of Sousa and Voss (2002),
performance dimensions motivates further examination ‘‘While there may be no one best implementation
of its association with other QM practices. Similar to approach to suit all organizations and each company
extant studies (see for example, Ahire and O’Shaugh- may need a tailored implementation program (e.g. Van
nessy, 1998; Anderson et al., 1995; Flynn et al., 1995; der Akker, 1989; Atkinson, 1990), it may be possible to
Kaynak, 2003) that consider the over-arching role of derive general principles that apply to particular
management leadership in influencing other QM categories of companies. In this connection, research
practices and performance, it would be interesting to should identify which are the relevant moderating
investigate the role of customer focus in initiating such a factors to be considered and their links to the choice of
systemic effect on performance through its impact on the implementation approach (e.g. Mann and Kehoe,
other QM practices. 1995; Yusof and Aspinwall, 2000)’’.
5.2. Moderating factors in the relationship between 5.3. Limitations of the study
QM practices and performance
In this study, every effort was undertaken to conduct
An overwhelming support was found for the an extensive analysis of the literature and to obtain
presence of moderators in the relationship between reliable and valid findings that would aid enhancement
and enrichment of the theory of quality management. and performance is critical in understanding the efficacy
However, there are some limitations in this research of individual practices. Cooper (1998, p. 22) states,
study that are presented next. ‘‘Although some specific interactional hypotheses in the
The first limitation is the degree of artifact correction social sciences have generated enough interest to
achieved through this meta-analysis study. Hunter and require independent research synthesis, for the vast
Schmidt (1990, p. 43), state that the goal of a meta- majority of topics the initial problem formulation will
analysis of correlations is a description of the involve a two-variable question. Again, however, the
distribution of actual correlations between a given initial undertaking of the synthesis is to establish the
independent and a given dependent variable. They existence of a bivariate relationship should in no way
identify 11 artifacts that alter the size of the study diminish the attention paid to discovering interactive or
correlation in comparison to the actual correlation (p. moderating influences’’.
45)—sampling error, error of measurement in the
dependent variable, error of measurement in the 6. Conclusions and directions for future
independent variable, dichotomization of a continuous research
dependent variable, dichotomization of a continuous
independent variable, range variation in the independent This study of the relationship between QM practices
variable, attrition artifacts (range variation in the and performance is an effort to extend and refine the
dependent variable), deviation from perfect construct theory of QM. It clarifies the associations and provides
validity in the dependent variable, reporting on motivation for further studies towards the development
transcriptional error, variance due to extraneous factors. of a comprehensive QM theory. Overall, the results
Among these artifacts, this study covered sampling reveal a positive correlation between several QM
error (by weighting each study by attenuation corrected practices and firm performance dimensions. This
sample size) and error of measurement in the dependent provides impetus for practitioners to continue adopting
and independent variable (by considering the construct QM practices in their organizations.
reliability) based on their availability in extant research This study provides some directions for future
literature. Other potential artifacts were not considered research. In future empirical studies that examine the
in this study. performance implications of QM practices, researchers
The second limitation can be attributed to the are encouraged to present a detailed correlation matrix
hypothesized associations between QM practices and that they obtain between the QM practices; between
performance. To keep the analysis and the results QM practices and performance; and between different
simple, this study considers the direct relationships of performance measures. This will enable more compre-
aggregate and individual QM practices with firm hensive meta-analytic studies in future, furthering the
performance measures. However, in literature several process of development of QM theory.
indirect associations between QM practices and Future studies should consider the role of moderating
performance can be found. For example, in Anderson factors in understanding the impact of quality manage-
et al. (1995) and Rungtusanatham et al. (1998) a causal ment on various performance measures. Recently,
path is presented that suggests that management researchers have started an explicit investigation of
leadership creates an organization system based on contextual moderating and mediating effects (Choi and
learning cooperation which in turn enables implemen- Eboch, 1998; Douglas and Judge, 2001; Sousa and Voss,
tation of process management practices leading to 2001; Shah and Ward, 2003), however, more studies are
continuous improvement of process, product and needed to obtain further clarity. Future investigation
service quality. Similarly, in a recent study Kaynak should evaluate if same moderating variables influence
(2003) presents a research model that empirically each specific relationship between QM practice and
investigates relationships among QM practices and the performance or are these moderating effects dependent
direct and indirect relationship between QM practices on specific QM practice and performance measure that
and performance measures. is under investigation.
A thorough investigation of direct relationship Highlighting the approach that companies adopt
between QM practices and performance is an important towards implementing QM, Spencer (1994) state, ‘‘QM
step in the theory-building process. Indeed, contingen- is a systematic approach to the practice of management,
cies and interaction effects are important and are present requiring changes in organizational processes, strategic
in almost all links between practice and performance. priorities, individual beliefs, individual attitudes, and
Yet, a test of the direct relationship between practice individual behaviors (Olian and Rynes, 1991). It is not a
cut-and-dried reality but an amorphous philosophy that Theoretical Developments in Marketing. American Marketing
is continuously enacted by managers, consultants, and Association, Chicago, pp. 240–243.
Chenhall, R.H., 1997. Reliance on manufacturing performance, total
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Journal of Operations Management 24 (2006) 948–975

Meta-analysis of the relationship between quality management

Keywords: Quality management; Performance; Theory development; Meta-analysis

1. Introduction the underlying practices in QM are fundamental and

A. Nair / Journal of Operations Management 24 (2006) 948–975

A. Nair / Journal of Operations Management 24 (2006) 948–975

A. Nair / Journal of Operations Management 24 (2006) 948–975

A. Nair / Journal of Operations Management 24 (2006) 948–975

A. Nair / Journal of Operations Management 24 (2006) 948–975

A. Nair / Journal of Operations Management 24 (2006) 948–975

Core TQM factors

A. Nair / Journal of Operations Management 24 (2006) 948–975

considers studies for which relevant information for

with production costs. Return

correlated with management

was significantly correlated

significantly and positively

constructs, whereas, return

correlated with only

coefficients etc. could be obtained either from the

3. Meta analysis of correlations

Meta-analysis of correlations is one of the metho-

existing literature to refine and extend theory. It enables

a description of the distribution of actual correlations

susceptible to chance variation, differences in research

5. Effective evaluation and

relationships between variables when those artifacts

are removed (White, 1996). Glass (1976) noted that we

need methods that integrate results from existing

studies and reveal patterns of relatively invariant

relations and causalities. The establishment of these

However, studies are never perfect and thus, the

artifact that can be estimated and corrected for is the

averaged, and the average correlation would be closer

5. Discussion However, similar to some other studies (see for

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