TQM Components as a Source of Competitive Advantage in a Beverage Organization

Abstract

This study reports on a case study of TQM adoption in searching for answers of why and how organizations adopt such approaches to gain competitive advantages within a Bangladeshi beverage company. It focuses organizational approaches to adopt TQM as a strategic option and the subsequent changes in organizational set-up. Moreover, using the resource-based theory, this study explores what TQM components help achieving competitive advantage. Findings reveal that due to the change in customer requirements in respect to tastes and quality; and increased price pressure led the case organization to adopt TQM. The result shows that the case organization has brought a series of changes in adopting TQM including appointing a consultant; encouraging a culture of continuous learning; developing a mechanism of communicating information; involving top management along with the employees in the improvement process; and emphasizing the use of teams. Following the resource-based view, findings show that the adoption of TQM helped the case organization in identifying its capabilities that facilitated the achievement of competitive advantage. The findings may help other organizations to learn lesson from the case organization through the identification of tacit resources that are generated by a TQM initiative.