Ee. Adam et al., Quality improvement practices and the effect on manufacturing firm performance: evidence from Mexico and the USA, INT J PROD, 39(1), 2001, pp. 43-63
A comparison of organizations in Mexico and the USA demonstrates that, for
these two countries, different quality improvement approaches are related t
o actual quality and financial performance. For 345 firms multiple quality
improvement variables are correlated with seven quality measures, four fina
ncial measures, and one operating performance measure. Results suggest that
in both countries an increase in employee involvement leads to improved qu
ality-a decrease in internal failure costs, the percentage of items defecti
ve, and costs of quality. In Mexico an increase in employee knowledge about
quality improvement and customer focus also leads to improved quality (as
measured above). In the USA, but not in Mexico, the quality improvement app
roach relates to financial performance. An increase in senior executive lea
dership and an increased emphasis upon both design and conformance in the U
SA leads to an improved return on assets and increased net profit. In each
country similar distributions from respondents regarding individual items t
hat improve quality can be found, yet statistical modelling demonstrates co
untry-specific models best explain quality improvement/performance relation
ships. This suggests culture-specific quality improvement models are necess
ary to better understand how quality may be improved globally.