Predicting total quality management adoption in New Zealand: The moderating effect of organisational size

The paper seeks to understand the adoption rates of total quality management (TQM) by New Zealand firms, and the role that organisational size plays in determining adoption rates.

A survey of 997 random New Zealand firms of all sizes yielded 228 responses. Factors tested to predict TQM adoption were organisational size, workplace autonomy, performance standards, use of teams and group problem solving. In addition, organisational size was tested as a potential moderating variable on the other factors.

Overall, 33 per cent of firms in New Zealand used TQM, with an addition 5 per cent no longer using TQM, indicating strong adoption rates by international standards. All the direct effects and moderating effects were supported. Consequently, firms with higher level of workplace autonomy, use of performance standards, use of teams, and use of group problem solving were more likely to have adopted TQM, and this was more likely for larger firms than smaller firms. As a result, strong support was found for the interacting effect of organisational size.

The implications are that TQM adoption rates are much higher in New Zealand than suggested in the international literature. A highlight of the present study is the focus on firms of all sizes, rather than being limited to only larger sized firms.

This paper provides much needed information on the state of TQM in New Zealand and provides a unique approach by testing the moderating effects of organisational size on predictor factors on New Zealand firms.