The effect of TQM on performance in R&D environments: A perspective from South Korean firms

This paper presents an empirical study, which examines the effectiveness of Total Quality Management (TQM) practices in R&D environments by demonstrating the effect of TQM practices on R&D performance in terms of product quality and product innovation. Despite numerous studies of the relationship between TQM and organisational performance, little research has been done on the relationship between TQM and R&D performance. This study used data from 130 R&D divisions of Korean manufacturing firms. Two research questions were posed, with the first pertaining to the implementation of TQM principles in R&D environments and the second focusing on the effect of TQM on R&D performance. TQM practices were measured by six criteria of Malcolm Baldrige National Quality Award, and R&D performance measures consist of quality and innovation aspects. Using structural equation modelling techniques, the findings showed the integration of the implementation of TQM practices in R&D divisions as well as the significant contribution of TQM to R&D performance. These findings suggest that TQM as a set of generic principles can be adapted in environments other than manufacturing or production areas.