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A Study on Quality Management Practices and Firm Performance of Korean Manufacturing Firms

Noh, Buho · Park, Yeongsu

Published: January 1999 · Vol. 28, No. 3 · pp. 659-676
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Abstract

The purpose of this study is to analyze quality management practices that can discriminate between firms with superior and inferior corporate performance (quality performance and non-quality performance), and to identify quality management practices that contribute to corporate performance. The findings are summarized as follows. First, there is a positive correlation between the degree of implementation of quality management practices and corporate performance. Second, quality management leadership, employees' utilization of quality information, indirect quality assurance, supplier relationships, and general practices oriented toward customer satisfaction were found to effectively discriminate between high-performing and low-performing firms. Third, quality management practices such as strategic planning processes in quality management, maintaining trust with suppliers, and both indirect and direct quality assurance contribute to improving corporate performance. The significance of this study lies in demonstrating that firms can improve their performance by implementing quality management, and in presenting the direction for quality management implementation.