Total quality management and sustainable competitive advantage

Abstract

Although it is generally accepted that Total Quality Management (TQM) can generate a sustainable competitive advantage, there is, surprisingly, little or no theory to underpin that belief. Therefore, the primary purpose of this paper is to explore the validity of the claim. By drawing on the market-based theory of competitive advantage, resource-based theory of the firm, and systems theory, we are able to conclude that the belief is warranted. We deduce that the content of TQM is capable of producing a cost- or differentiation-based advantage, and that the tacitness and complexity that are inherent in the process of TQM have the potential to generate the barriers to imitation that are necessary for sustainability.