Total quality management in the supply chain: What is its impact on performance?

Recent empirical studies of quality management have led to mixed findings regarding a significant positive relationship with performance. By combining nonlinear (DEA) and linear (regression) analyses, we demonstrate that TQM practices are related to performance. We establish this relationshp using objective (not self-reported) quality performance data. We believe that this is the first study to use objective quality data collected by a third party. Our findings should encourage manufacturers to continue promoting TQM practices throughout the supply chain; certain practices do lead to better performance.