The Influence of Quality Management on Corporate Performance
| Authors | |
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| Year of publication | 2013 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 9th European Conference on Management, Leadership and Governance |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | Corporate performance; Financial analysis; Quality management; Product quality |
| Description | The subject of this paper is an analysis of quality focused on quality management (QM) and its influence on business performance. The article’s objective is to ascertain the level of QM in various businesses and identify quality factors affecting business performance. The resulting interconnection between the parameters of quality and performance should guarantee that the selected parameters will be reflected in the quality of business performance possible through simultaneous QM and the influence on future corporate performance. The research is based on primary data obtained from a survey using a questionnaire. The questionnaire contains questions relating to QM and to product quality. Financial data were obtained from financial statements. Answers collected were processed with statistical methods of univariate and bivariate analyses. Considering the relatively low number of respondents, the results are mostly based on a variety of contingency tables, i.e. on identification of the varying occurrence of the phenomena controlled for the clusters of companies in the research. To examine the financial performance of companies, a method of a financial analysis, specifically a ratio indicator analysis, was applied. Indicators were selected to allow evaluation of all key areas of an enterprise, i.e. profitability, activity, indebtedness and liquidity. To divide companies into a high performing group and a low performing group, a cluster analysis was used. Clusters are formed by companies which demonstrate the greatest concordance in the selected financial indicators. To guarantee full comparability of the financial indicators, it was necessary to standardize the individual coordinates (indicators) before carrying out the cluster analysis itself. So called z scores are used for the standardizations. To achieve maximum objectivity in dividing individual companies into clusters, a retrospective progression of data from a combination of financial indicators was used. |
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