Total quality management and productivity in industrial corporations in Jordan

Abstract

The purpose of this analytical study is to determine the degree of application of Total Quality Management (TQM) philosophy and practices in the industrial corporations in Jordan. Through detailed examination of primary and secondary empirical data from these corporations, the study examines the link between TQM and labour productivity. The population of the study consists of all Jordanian shareholding corporations listed under the industrial category in Amman Stock Exchange. In late 1998, this consisted of a total of 90 companies. Both quantitative and qualitative data were collected and analysed in investigating the relationship between TQM implementation and labour productivity. Detailed survey responses from 76 participating companies were classified into two groups: high-level TQM implementation and low-level TQM implementation. About 60% of these companies were classified as companies with high-level TQM. Descriptive analysis of the survey responses plus company report data found that mean labour productivity measurements for companies with high-level TQM were significantly higher than for those with low-level TQM over the years (1993-1998). Also mean growth rates of labour productivity measurements for companies with high-level TQM were higher than for those with low-level of TQM during this period. Regression analysis demonstrated a statistically significant positive relationship between TQM and labour productivity. This relationship showed a high positive slope in companies with ISO 9000 certification, and considerably lower (but still positive) slope in companies without ISO 9000 certification. ACCESS RESTRICTED TO ABSTRACT ONLY