Exploring quality management practices and high tech firm performance

High tech firms compete based on the ability to respond to dynamic environments and to quickly develop innovative new products. However, can quality management (QM) also be a source of competitive advantage for high tech firms? This study empirically investigates the relationship between the extent of quality management implementation and performance in high tech manufacturing firms. Cluster analysis was done based on three performance variables, total inventory turnover, product quality, and sales growth. Two distinct groups, one low performing and one high performing, emerged as a result of cluster analysis. The results show that high performing firms have implemented QM more extensively than low performing high tech firms. Thus, QM can be a source of competitive advantage for high tech firms.