How does the TQM approach influence and improves the overall business performances?

in simple words it is the control  and management over quality issues and outcomes from point a to point y.it is an envolving process that deals with every aspect of the product,service,business...etc.and would personally couple it with kaizen method to get TQM improvements with time.

 it really adds great value as it strengthens the conformity that things must be done  right the first time. which greatly positively influences the outcome and end product or service.

A core definition of total quality management (TQM) describes a management approach to long–term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. The methods for implementing this approach come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph M. Juran.

This study explores the hypotheses that implementing effective total quality management (TQM) programs improves the operating performance of firms. The winning of quality awards is used as a proxy for the effective implementation of TQM programs. Changes in various performance measures for a test sample of quality-award winners are compared against a sample of control firms. Our statistical tests provide strong evidence that firms that have won quality awards outperform the control firms on operating income-based measures. Over a10-year period, from6 years before to3 years after the year of winning the first quality award, the mean (median) change in the operating income for the test sample is107% (48%) higher than that of the control sample. There is reasonably strong evidence that firms that have won quality awards do better on sales growth than the control firms. Over the10-year period, the mean (median) change in sales for the test sample is64% (24%) higher than that of the control sample. We also find weak evidence that firms in our test sample are more successful in controlling costs when compared with the firms in the control sample. In addition, the results indicate that firms in our test sample increased their capital expenditures more than the control sample over the time period prior to winning quality awards. Compared with the control sample, the test sample shows higher growth in both employment and total assets.