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Bishnu Sharma, Faculty of Business, University of the Sunshine Coast, Australia
David Gadenne, Central Queensland University, Australia

Abstract

Quality management has appeared as one of the most important strategic tools of top managers for improving quality performance and thereby organizational performance. However, there is very little research available in this area relating to small and medium businesses. Therefore, this paper presents the results of an empirical investigation of the relationship between quality management strategies and business performance in these types of business enterprise. Following a series of interviews with business executives to develop an understanding of the adoption of quality management strategies, a mail survey was conducted to collect the relevant data from businesses in Queensland, Australia. The survey found that even in small businesses, principles of TQM have been adopted in most cases informally if not explicitly. TQM factors such as top management philosophy, process improvement efficiency and training have a significant association with business performance although the level of implementation of TQM is still at a low ebb.

 Quality management Strategies and Performance: An Empirical Investigation