The impact of quality management systems on financial performance under crisis conditions: evidence from SMEs. (17th November 2022)

• Record Type: Journal Article
• Authors: Kriemadis, Athanasios; Sainis, Georgios; Haritos, George
• Is Part Of: Total quality management & business excellence. Volume 33:Number 15/16(2022)
• Page Start: 1846
• Page End: 1871
• Publication Date: 2022-11-17
• Subjects: TQM -- ISO certification -- SMEs -- quality culture -- quality tools and techniques -- quality appraisal systems; Total quality management -- Periodicals; Quality control -- Periodicals; Quality assurance -- Periodicals; Production management -- Quality control -- Periodicals; 658.401305
• DOI: 10.1080/14783363.2021.2005461
• Languages: English
• ISSNs: 1478-3363

Abstract

Abstract : The purpose of this article is to investigate the impact of total quality management (TQM) practices adopted by small and medium enterprises (SMEs) on their financial performance in a period where economic and social crisis conditions are recognised. A questionnaire was distributed to 400 recipients and a total of 392 questionnaires have been fully and accurately completed resulting in a response rate equal to 98%. Those primary data collected were statistically processed conducting a scoring analysis and a multivariate (MANOVA) analysis. The scoring analysis showed the level of quality elements implemented and the MANOVA analysis presented the effect they had on the financial performance of the quality-oriented SMEs. The analysis revealed that all quality-oriented SMEs presented an improved performance in the two financial measures such as solvency and efficiency compared to the profitability and liquidity measures. The TQM SMEs (the quality-oriented SMEs that have continued their quality journey reaching the TQM level) were the ones that have shown further improvement in their financial performance and of those, the micro-SMEs were the most financially sustainable companies. In addition, the quality-oriented SMEs have continued their quality journey towards TQM, presenting an increased rate of transition to higher quality levels, using their Altman Z -score as the criterion.