Influence of Quality Management Practices on the Business Performance of Slovak Manufacturing Enterprises
Marek Potkány, Pavol Gejdoš, Petra Lesníková, Jarmila Schmidtová
Abstract
The purpose of the paper is to point out the current state of using selected quality management practices in Slovak manufacturing enterprises. The research was focused on the application of selected practices of quality management, which can ensure that the customers' needs are met and thus contribute to the higher performance of the business. Selected practices of quality management -TQM, Kaizen, Six Sigma and Controlling of quality were considered such approaches. A specific aim of the paper is to find out the level of their real use and potential effects on business with relation to business's performance measured by the Return on Equity. The major research method was the primary quantitative research through a questionnaire. The survey data from 461 enterprises were analysed by the means of descriptive and inferential statistics. Since the variables of our interest are categorical in nature, we used appropriate nonparametric statistic technique -Pearsons chi-square test. The 95% confidence intervals for proportions were also calculated. The results indicate dependence between the business size, capital structure and use of quality management practices. At the same time, it can be concluded that businesses applying at least one of the quality management practices achieve higher performance measured by the ROE (above 7.5%). Using the quality management practices, businesses can increase their economy and efficiency, reduce the unwanted variability in the processes and associated non-productive costs for increasing the production quality and customer satisfaction. Furthermore, these findings partially contribute to extension of knowledge in this research area.