Gaining Company’s Sustained Competitive Advantage, Is Really a Necessary Precondition for Improved Organizational Performance? The Case of TQM
During the last decades companies compete in a highly volatile globalized environment due to international competition and the development of new business approaches. Globalization has transformed the historic patterns of investment, production and distribution of firms and organizations. Enterprises, in order to facilitate their successful existence and improve the levels of their efficiency focus on maintaining and increasing market shares, as well as gaining and sustaining competitive advantage. Recent research reveals that over time competitive advantage has become significantly harder to achieve and moreover sustained. Under those circumstances, Total Quality Management can be considered as an organizational commitment and dedication to produce improved quality goods and services that meet or exceed customers’ expectations through continuously improved processes. The purpose of this paper is to explore the relationship between Total Quality Management and competitive advantage and discuss the possibility of a firm or organization not only to achieve such competitive advantage but also the dynamics to maintain it through the TQM approach. In addition, it will be clearly presented how Total Quality Management can be accepted as a necessary precondition for improved organizational performance.