Critical success factors of TQM: Impact on business performance of manufacturing sector in Pakistan

Abstract

This paper develops comprehensive criticality index (CCI) of TQM implementation and investigates its relationship with business performance of the manufacturing firms selected from four major industries of Pakistan. Data collected from randomly selected two hundred ISO 9000-2000 certified firms. CCI of quality implementation for overall manufacturing sector as well as for individual industry is developed so as to find specific requirements of quality management improvement in each industry. Critical Success Factors (CSFs) based on CCI are arranged in descending order and classified into three tiers. By using Multivariate regression analysis; significance of CSFs of TQM for firm's business performance is analyzed for each industry. The results of this study will guide the senior management in implementation of TQM program and allocation of resources that will yield best performance in term of higher returns and maximum stakeholder value.