Commitment to total quality management: Is there a relationship with firm performance?

Much has been written about Total Quality Management (TQM) but, to date, there has been relatively little empirical investigation. Therefore, this work addresses the overarching question of whether or not TQM measurably improves firm performance. For a sample of sixty firms, that have demonstrated a commitment to TQM for a period of at least five years, we find that the strategy is associated with superior stock-market performance (on a market- and risk-adjusted basis) and improved profit margins.