Abstract:
Organizations in the world have been exploring ways of improving quality to
increase business performance in order to gain competitive advantage
(Ferdousi & Shabnam, 2013; Jha and Joshi, 2010). As a result of that many
businesses in the world are practicing Total Quality Management (TQM) in
order to increase business performance and gain competitive advantage
(Ferdousi & Shabnam, 2013). Therefore, this study investigates that the effect
of TQM practices on the business performance of manufacturing companies
in Sri Lanka. The sample was selected by using random sampling method.
Conceptual framework and hypothesis are tested by using questionnaire mail
survey. The research is basically based on the primary data collected using a
questionnaire. The findings suggest that TQM determinants have significant
correlation with business performance. Moreover, results in multiple
regression analysis revealed that top management commitment, supplier
quality management and strategic quality planning are positively related with
the business performance. Hence, result indicates that manufacturing
companies should emphasize greater attention on top management
commitment, supplier quality management and strategic quality planning.
Therefore, this study has important impact for the top management. According
to the major findings of the study, top management have to increase their
commitment and effort on the day to day operations. Moreover, suppliers’
input quality is essential in producing quality output. Further, strategic quality
planning on quality decisions is also very much essential in enhancing
business performance.
