MEASURING THE EFFECT OF QUALITY MANAGEMENT PRACTICES ON COMPANY FINANCIAL PERFORMANCE - A CASE STUDY ON IKEA

Abstract

Total Quality Management (TQM) is a process that enhances the continuous development of products and service quality to get customer satisfaction and promote the productivity. Quality management is managing all the activities which determine the quality policy and how implementation by the quality planning and quality assurance. It has a big role to improve and develop the performance of the organization. Therefore, this study investigates the effect of quality management practices on company financial performance. This research used both qualitative and quantitative approaches such as literature review and questionnaire. There are about 53 respondents from IKEA Company, Saudi Arabia had participated in this study. The questionnaire is used to understand the perspective of employees regarding the importance of quality management practices on company financial performance. This study identified three main practices: management, infrastructure, core practices and their relationship with the company financial performance. The hypotheses test results confirmed that there is a positive relationship between the quality management practices and company financial performance.