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Top1. Introduction
Total Quality Management (TQM) is a philosophy with the aim of achieving an overall performance (Munhurrun et al., 2011). TQM has become one of the competitive strategies of choice during the 1990s and has been widely implemented throughout the world (Rad, 2006). TQM has become a globally strategic force, which may lead to several benefits: improved customer satisfaction, greater employee focus and motivation, reduced waste and improved overall performance (Juran, 1988). TQM is an organization-wide philosophy and problem-solving methodology that focuses on systematically and continuously improving the quality of products, processes, and services. In the past decades, TQM has come to be adopted the world over (Kajiwara, 2010).
This study address the factors influencing the adoption of TQM particularly the innovative management accounting techniques, where in today’s competitive environment quality is the key to an firm’s success and survival, to compete effectively, firms must embrace the principles of TQM. Six variables have been examined as the following:
- a.
Intensity of the competitive environment;
- b.
Size;
- c.
Impact of information technology;
- d.
Extent that target costing is applied;
- e.
Extent of use of innovative/strategic management accounting techniques.
The motivation behind undertaking this research was the TQM needs a lot of research, in this regards, Dale et al. (2001) asserted that TQM is still in an early stage of theory development. They stressed the need for scholarly development of TQM theory and the incorporation of existing management theories into its development. It could be added that the contextual factors may attract researchers to examine its effect on adoption and implementation stage, TQM strategies represent a paradigm shift from the earlier strategies of the 1980s in the approach to management science. The past decade has witnessed a remarkable spread in the use of total quality management (TQM) practices in both manufacturing and non-manufacturing firms and total quality management (TQM) has been one of the most significant management “movements” in the U.S. during the past 15 years and perhaps one of the most significant management movements since “management” became an identified professional activity (Easton et al., 1997). Intense competition in the marketplace has caused manufacturing firms to search for a competitive edge in their manufacturing operations and processes. It has been argued that the use of TQM practices has a synergistic impact on organizational performance (Schonberger, 1986; Cobb, 1993). Some studies have found that the use of TQM practices reduces manufacturing process variance, eliminates reworks and scraps, and improves quality performance (Daniel & Reitsperger, 1991; Flynn et al., 1995; Schmenner & Cook, 1985). In addition, there is considerable anecdotal evidence (Crosby, 1984; Hayes & Wheelwright, 1984; Gerwin, 1987; Harmon & Peterson, 1990) on the extent to which TQM initiatives enhance the potential for firms to improve their performance. Total quality management (TQM) has continued to develop as a strategic business improvement approach in organizations and within the Operations Management literature and Strategic TQM is a dynamic phenomenon, reflecting the complexity and technology development in the business environment (McAdam et al., 2006). There is a huge number of published literature on TQM. The main aim in these papers is that TQM is an approach to management that is characterized by the principles of customer focus, continuous improvement, and teamwork (Ugboro & Obeng, 2000; Wadsworth et al., 2002; Chan & Quazi, 2002; Hellsten & Klefsjo, 2000; Scharitzer & Korunka, 2000; Young et al., 2001; Woon, 2000; Fok et al., 2001).