TRENDS IN INTERNATIONAL QUALITY MANAGEMENT RESEARCH: 1990-1996.

INTRODUCTION

Companies trying to gain a competitive edge in today's global marketplace have realized the importance of raising the quality of goods and services. Quality management is now fairly well established in the U.S. and Western Europe, and it is increasingly being implemented in developing countries such as China, India, and the emerging markets of Central and Eastern Europe (Krygier, 1993). Quality management techniques are expected to increase market share, customer loyalty, productivity, cash flow, return on investment and stock price, and to reduce production costs and after sales service calls.

The move toward quality management in organizations has been accompanied by a growing interest in this area among academicians. Journals such as Decision Sciences, Academy of Management Journal, and California Management Review have brought out special issues on quality management, and a new journal Quality Management was founded in 1993. These publications have emphasized topics such as the importance of quality and quality attitudes (Batley, 1993), quality strategies (Daniel & Reitsperger, 1994; Hurd, 1992; Robinson & Schroeder, 1993), quality tools and techniques (Denton, 1991; Melcher et al., 1990; Pitman et al., 1995), and the implementation of quality programs in organizations (Easton, 1993; Lakhe & Mohanty, 1994).

The literature on international quality management, however, has not been integrated into a comprehensive framework for awareness and understanding. This paper begins the process toward integration by examining and identifying publication patterns in international quality management in industrialized, newly industrialized, and developing regions. Recognizing these publication patterns can be useful to both researchers and practitioners. Researchers can use this paper to assess the under- or over-representation of certain areas of research when developing theories and conducting studies in international quality management, and practitioners can get a better perspective on the quality management techniques adopted in different regions around the world. The next section discusses international quality management in industrialized, newly industrialized, and developing regions; the following section expands on quality management approaches prevalent in the literature. In addition, these sections present the research questions investigated in the study.

INTERNATIONAL QUALITY MANAGEMENT IN INDUSTRIALIZED, NEWLY INDUSTRIALIZED, AND DEVELOPING REGIONS

Quality management can be influenced by the degree of competition faced by a firm, barriers to entry in an industry or country, quality demands by customers, governmental regulations concerning quality, and the level of technology (Benson, Saraph, & Schroeder, 1991; Ettlie, 1997). These factors can vary by country. Companies in countries with high levels of competition and few barriers to entry are more likely to practice quality management; even if the competition is based on of price rather than quality, cost reductions can still be gained through improved quality techniques. Likewise, firms may be forced to adopt quality practices in the face of customers' quality requirements and government regulations (Benson et al., 1991). The level of technology can also influence the quality management practices of organizations. The connection between quality management and organizational performance is stronger in low-technology firms than in high-technology ones (Ettlie, 1997); hence, countries with large numbers of low-technology industries may benefit to a greater extent by adopting quality practices.

The literature suggests that industrialized and developing countries are at different stages of the quality movement. In industrialized countries, quality management has been practiced for a number of years, whereas in developing countries it is of a more recent origin. The literature has extensively examined quality management in industrialized countries such as the U.S. (Benson et al., 1991; Easton, 1993; Johnson, 1995; Kano, 1993), the U.K. (Field & Shutler, 1990; Oakland & Aldridge, 1995; Pitman et al., 1995, Porter & Smith, 1993), Australia (Davis & Fisher, 1994; Samson & Sohal, 1990), New Zealand (Batley, 1993; Sloan, 1992), Japan (Flynn, 1992), and the Netherlands (de Vries & van de Water, 1992). For the most part, American industries started to emphasize quality management when they began losing market share to Japanese competitors and realized the importance of quality to Japan's economic success (Reitsperger & Daniel, 1990). European firms have also taken a significant interest in quality management due to changes in the European market and the adoption of ISO 9000 and BS 5750 standards.

Recently, researchers have begun to examine quality practices in newly industrialized countries such as Singapore (Pheng, 1993; Pheng & Hwa, 1994), Taiwan (Tam & Lu, 1995), and Hong Kong (Lam, 1995), and in developing countries such as India (Lakhe & Mohanty, 1994; Motwani, Mahmoud, & Rice, 1994), China (Zhao, Young, & Zhang, 1995), and Mexico (Tata & Prasad, 1998; Vargas & Johnson, 1992). The literature suggests that the quality movement is lagging in developing countries who are still perceived as producers of Poorer quality products. For example, a survey of quality in India found that only four per cent of the companies surveyed were using quality practices effectively (Singh, 1991).

A number of barriers to quality management have been identified in developing countries. These include: low levels of competition, lack of management commitment, low employee involvement, lack of communication and trust between suppliers and customers, unorganized customers, few established quality standards, low levels of capital investment in technologies and education, and severe constraints on economies (Lakhe & Tidke, 1991; Lakhe & Mohanty, 1994). Often, imports are heavily regulated in many developing countries to protect local industries and customers have no choice but to purchase lower-quality, indigenously manufactured products. Also, in contrast to firms in industrialized countries that invest in employee education and expect all workers to be responsible for the quality of products and services, companies in developing countries are more likely to place the responsibility for quality in the hands of a few specialists and refrain from investing in employee training and education (Lakhe & Mohanty, 1994).

These differences in quality management practices between industrialized and developing countries should decrease with the lowering of trade barriers, the opening up of markets to multinational companies, and the acceptance of international quality standards such as ISO 9000 in developing countries. Hence, these countries may begin to see dramatic improvements in quality. In contrast, industrialized countries have already achieved high quality standards and further improvements may be only marginal. The literature on international quality management should reflect this increasing focus on quality in developing countries.

Research Question 1: Are international quality management publications changing their focus from industrialized to newly industrialized and developing countries?

It is possible that the level of industrialization of a country influences the quality management approaches used by organizations. Numerous quality techniques have been proposed by practitioners and researchers. In general, these techniques can be categorized as people-centered or data-centered (Ettlie, 1997). Deming initially focused on improving quality in manufacturing through statistical process control and other data-centered techniques, but later broadened his approach through his 14 principles of management (Deming, 1986). Juran (1989) stressed both approaches through the three basic processes of quality management--quality control, quality improvement, and quality planning. In contrast to Deming and Juran, Crosby (1979, 1984) has always been a proponent of the people-centered approach through his focus on the cultural and behavioral aspects of quality management. The following paragraphs briefly discuss these two approaches to quality management and connect them to industrialized, newly industrialized, and developing regions.

People-Centered Approach

The people-oriented approach to quality management includes issues such as top management leadership, employee involvement, supplier relations, and focus on customers (Burdett, 1994; Crosby, 1979; Deming, 1986; Juran, 1989; Pulat, 1994). Top management leadership is often the key to continuous quality improvement in organizations. This leadership consists of creating a vision that incorporates quality as integral to the business and of establishing policies, practices, and structures consistent with that vision (Crosby, 1984; Deming, 1986; Garvin, 1986; Juran, 1989; Pulat, 1994). Employee involvement, empowerment, teamwork, participation in training and quality circles, and horizontal coordination across functional areas are considered important aspects of quality management because maintaining high levels of quality depends on using the talents and abilities of the entire work force (Burdett, 1994; Crosby, 1984; Deming, 1986; Pulat, 1994). The quality department's access to top management, its coordination with other units, and its visibility and autonomy can also play a role in the effectiveness of organizational quality improvement efforts.

Supplier relations in product development and problem solving can influence quality, since continuous improvement depends on the quality of procured materials, parts, and services (Crosby, 1984; Deming, 1986; Garvin, 1986). In addition, obtaining customer feedback, meeting and exceeding the needs of internal as well as external customers, and blurring boundaries between functional areas within the organization and between the organization and customers are. integral to managing quality (Burdett, 1994; Deming, 1986; Garvin, 1986; Pulat, 1994).

Data-Centered Approach

In contrast to the approach described above, data-centered techniques such as statistical process control, quality assurance, and information analysis place greater emphasis on the appropriate use of information for improving quality. Statistical process control and the use of control charts are important aspects of quality management. Quality assurance requires that appropriate measures be taken at each stage of product design and manufacture, and then on through the point of delivery to customers. This technique suggests that quality has to be incorporated into the product through tight design specifications, and processes have to be monitored carefully and constantly. In addition, the use of scientific monitoring and measuring techniques can help organizations improve quality (Deming, 1986; Garvin, 1986; Juran, 1989).

Quality management also relies on a steady flow of accurate information about processes that generate products and services, including data about quality costs and measurements (Deming, 1986; Garvin, 1986; Juran, 1989; Pulat, 1994). The timely availability of quality data is enabled by the use of information technology, and analyzing this information allows organizations to make effective decisions about managing quality.

In general, the literature on quality management has moved away from a focus on quality control and statistical techniques (data-centered approach) to an overall strategic perspective on quality with emphasis on the behavior of management and employees (people-centered approach) (Ettlie, 1997; Garvin, 1986). The literature on international quality management may stress the people-centered approach to an even greater extent since this approach is more likely to be influenced by cultural and societal differences among countries and regions.

Research Question 2: Are people-centered techniques or data-centered techniques more prevalent in international quality management publications?

Research Question 3: Is there a connection between the type of quality management approach and the level of industrialization of a country?

The people-centered approach to quality management emphasizes the importance of a number of stakeholders, both internal (management and employees) and external (suppliers and customers). The focus on internal or external stakeholders can be influenced by country-specific factors such as the perceived power of management, attitudes toward employees and customers, and close connections with suppliers. Companies in industrialized countries are more likely to focus on market share and customer satisfaction, whereas those in developing countries with low competition and high trade barriers may perceive customer exploitation as more acceptable (Lakhe & Mohanty, 1994).

Research Question 4: Are internal or external stakeholders more likely to be examined in international quality management publications?

Research Question 5: Is there a connection between the relative focus on internal versus external stakeholders and the level of industrialization of a country?

Finally, international quality standards are an important mechanism for promoting the flow of information about quality practices across countries and can be an indicator of the importance firms place on quality management. Quality standards were primarily designed based on experiences in the US, Europe, and Japan, and companies adopt such standards due to factors such as customer pressure and marketing advantages (Taylor, 1994). Hence, it is likely that most publications on quality standards focus on industrialized countries, and not on developing regions.

Research Question 6: Do publications on international quality standards differ based on the level of industrialization of a country?

METHOD

Sample and Procedure

One hundred and sixty-eight articles published between 1990 and 1996 were obtained from a sample of 23 journals. These journals were selected because they have been identified by scholars as leading research outlets (Barman, Tersine, & Buckley, 1991; Coe & Weistock, 1984; Stahl, Leap, & Wei, 1988). Of these, some were primary Operations Management journals (e.g., Decision Sciences, International Journal of Operations and Production Management, International Journal of Production Economics, International Journal of Purchasing and Materials Management, Journal of Operations Management); others were broader management journals (e.g., Academy of Management Journal, California Management Review, Columbia Journal of World Business, Journal of International Business Studies), and one journal specialized in international quality management (International Journal of Quality and Reliability Management). Although this data set did not provide an exhaustive coverage of all publications in the area of international quality management, it constituted a fairly comprehensive basis for assessing patterns in the literature. All international quality articles from this set of journals were identified in the years 1990 to 1996. Data from 1990 to 1996 was utilized because it covered the key time period in which research in quality management was conducted (Jack, Stephens, & Evans, 1998).

Articles were included in the data set based on the following two criteria: (1) the article should concentrate specifically on the area of quality management, and (2) it should have an international or national focus. For an article to be included in the data set, it needed to have a global, multicountry, or national focus. Articles that compared quality issues across two or more countries were included. In addition, articles with a single-country focus that brought a unique country's perspective on quality issues were also included because such articles can serve as useful sources of information for cross-country comparisons.

Coding of Articles

Each article was coded according to the following categories: year of publication, topic area of international quality management, country-specific or comparative focus, level of industrialization, research methodology, and sector. Based on a reading of the articles and the keywords used by the authors, publications were categorized under one or more of the following topic areas: quality strategy, quality techniques, implementation of quality programs, importance of quality and quality attitudes, quality awards, and international quality standards. Furthermore, the topic area of "quality techniques" was sub-categorized as: people-centered techniques (e.g., management leadership, employee involvement, role of the quality department, customer focus, supplier relations, and continuous improvement) and data-centered techniques (e.g., statistical process control, quality assurance, information analysis, and expert systems for quality).

In addition, the specific countries or regions examined in the publications were identified and the studies were classified according to the level of industrialization of the country. Industrialized countries included the U.S., the U.K., Germany, Australia, New Zealand, and Japan; newly industrialized countries included Singapore, Taiwan, and Hongkong; and developing countries included China, India, Saudi Arabia, and Mexico. Country-specific studies examined and explained quality practices within specific countries, while comparative studies identified similarities and differences across two or more countries. In addition, articles were categorized by sector (manufacturing, service, other) and research methodology (empirical, non empirical). To check for reliability in the classification process, a random sample of a one-year interval was re-coded by an independent rater and the two codings were compared. Inter-rater agreement was calculated as the ratio of the number of agreements in the ratings of the two raters to the total number of articles in the sample (e.g., if a total of 100 articles was coded and the two coders similarly classified 95 articles under the same categories, inter-rater agreement would be 95 per cent). In this research, inter-rater agreement was greater than 95 per cent.

RESULTS

Preliminary analyses suggested that the trend in international quality management publications showed an increase during the seven-year period, but appeared to level off after 1994. (See Figure 1.) Most studies (122) focused on industrialized countries, primarily the U.S. (37) and the U.K. (36). Twenty-two articles focused on developing countries, primarily India and China, and I6 on newly industrialized countries such as Singapore and Taiwan. One hundred and thirty-three articles had a country-specific focus and 13 compared similarities and differences across two or more countries. Based on the frequency of publications, the most researched areas in international quality management were quality tools and techniques (118), quality strategies (25), and importance of quality and quality attitudes (17); most articles were categorized under two or more areas. (See Table 1 for a profile of the data.)

[ILLUSTRATION OMITTED] TABLE 1 Profile of publications (N = 168). Variable N Type of study

country-specific 133

comparative 13

global/not specified 22 Research method

empirical-survey 61

empirical-case study 33

empirical-interview 8

empirical-experiment 6

non-empirical/model-building 60 Sector(a)

manufacturing 65

service 30

other 9

not specified 72 Region(b)

industrialized 122

newly industrialized 22

developing 16 (a) Totals do not add up to 168 since some articles focused on more than one sector. (b) Totals do not add up to 168 since some articles focused on more than one region.

Research Question 1: Are international quality management publications changing their focus from industrialized to newly industrialized and developing countries?

Figures 2 and 3 present the trends in international quality management publications for industrialized, newly industrialized, and developing regions for country-specific and comparative studies. Statistical analyses were conducted to examine whether trends for industrialized, newly industrialized, and developing countries differed. The results suggest that although publications focusing on industrialized countries are increasing, the number of articles focusing on newly industrialized and developing nations are increasing even more rapidly ([R.sup.2] = .35, .77, and .94 respectively). In addition, the number of studies comparing quality practices between two or more industrialized countries decreased, while publications studying quality across countries at different levels of industrialization increased. The overall numbers, however, suggest that the research on international quality management is still focused primarily on industrialized countries, perhaps because of the long history of the quality movement in those regions, although this pattern is slowly changing.

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Research Question 2: Are people-centered techniques or data-centered techniques more prevalent in international quality management publications?

A majority of the publications emphasized the people-centered approach as opposed to the data-centered approach to international quality management, perhaps because the people-centered approach is more likely to be influenced by cultural, societal, and other country-specific differences. This finding suggests a move away from a focus on statistical techniques and data analysis to a consideration of top management leadership, employee involvement, customer focus, and supplier relations. Figure 4 presents the numbers of publications under the two approaches.

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Research Question 3: Is there a connection between the type of quality management approach and the level of industrialization of a country?

Using chi-square tests, differences in the propensity to focus on people-centered versus data-centered approaches were examined across levels of industrialization. Articles focusing on industrial countries were found to be significantly more people-centered, whereas articles focusing on newly industrialized countries were significantly more data-centered ([??.sup.2] = 4.87 and 6.82 respectively, p [is less than] .05). (See Figure 4.)

Research Question 4: Are internal or external stakeholders more likely to be examined in international quality management publications?

The people-centered approach to quality management emphasizes the importance of a number of stakeholders, both internal (management, quality department, and employees) and external (suppliers and customers). Figure 5 suggests that the international quality management publications focused slightly more on internal stakeholders. Researchers examined customer, supplier, management, and employee issues in about equal numbers, although few articles focused on issues pertaining to the quality department. This suggests a move away from quality specialists to holding all employees responsible for the quality of products and services.

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Research Question 5: Is there a connection between the relative focus on internal versus external stakeholders and the level of industrialization of a country?

Chi-square tests were used to examine differences in the propensity to focus on either internal or external stakeholders across levels of industrialization. The results suggest that industrialized, newly industrialized, and developing countries did not significantly differ in their relative emphasis on internal or external stakeholders, although there was a marginally significant tendency for articles on newly industrialized countries to focus on internal stakeholders ([??.sup.2] = 3.44, p [is less than] .10). (See Figure 6)

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Research Question 6: Do publications on international quality standards differ based on the level of industrialization of a country?

Only eight articles in the data set examined international standards, seven of which focused on industrialized countries. As expected, the publication pattern indicated that very little research is being conducted in the area of international standards in developing and newly industrialized countries.

DISCUSSION

Quality management is a ubiquitous phenomenon that has attracted the attention of both practitioners and researchers. Today, quality practices are being adopted in many countries including developing economies. The literature on international quality management consists of numerous case studies of successful companies and quality improvement programs, although there has been no systematic attempt to organize the concepts identified by different authors.

This paper examined the patterns of international quality management publications between 1990 and 1996. The results show that the majority of research is still being conducted in industrialized countries, reflecting the state of quality practice in that region. Publications focusing on developing and newly industrialized areas, however, are increasing at a more rapid rate than those in industrialized regions, perhaps reflecting the shifting industrial base from the North to the South.

The results also indicate that an extremely small number of publications examined similarities and differences across two or more countries, perhaps due to the difficulties involved in conducting such research. Comparative research between industrialized and developing countries, however, is crucial for understanding how quality management techniques from industrialized countries can be successfully transplanted to developing regions. Countries and regions have unique economic, cultural, and geographic factors that affect assumptions about business practices, and companies can be more successful in adopting and implementing quality management if they understand regional differences. Cross-regional studies can also help isolate the influence on quality management of international factors such as the level of infrastructure, education, and the political/legal system. Future researchers should move toward cross-country and cross-region comparisons; only then can we develop generalizable theories of international quality management.

The results denote that most articles focused on the people-centered approach consisting of issues such as top management leadership, employee involvement, customer focus, supplier relations, and continuous improvement. Few studies focused on data-centered issues such as statistical process control, quality assurance, information analysis, and expert systems for quality. This emphasis on people centered issues could be due to implicit assumptions of researchers; the data-centered approach may be assumed to be independent of cultural and regional differences, whereas the people-centered approach may be perceived as contingent upon differences between countries. These assumptions, however, should be empirically tested in future research.

The findings also indicate that articles focusing on newly industrialized countries were more likely to examine data-centered issues, while those focusing on developing and industrialized countries were more likely to investigate people-centered issues. This might be explained by the fact that newly industrialized countries started their development in the late 1960s and 1970s, whereas developing countries are relative newcomers to the global manufacturing environment; in the 1960s and 1970s there was a greater emphasis on technology/machinery transfer as opposed to the development of human resources. Developing countries, however, have an important advantage in that they do not have to repeat the mistakes of newly industrialized countries. The literature suggests that a major problem faced by developing countries is lack of quality management expertise and inadequate training facilities. Therefore, investing in human infrastructure rather than automation should yield better returns.

To compete globally, it is essential that quality is reinforced throughout the supply chain; to this end, both internal and external stakeholders need to be involved in the quality process. Our examination of the literature indicates that further research needs to be conducted on external stakeholders (customers and suppliers) in newly industrialized countries, and on customer issues in developing countries. Finally, researchers need to monitor the flow of quality information into developing and newly industrialized countries, and examine the rate at which companies in these nations are adopting international standards.

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Jasmine Tata is Professor of Management at Loyola University, Chicago. Sameer Prasad is Professor of Management at the University of Wisconsin-Whitewater. Sunil Babbar is Professor in the Department of Information Technology and Operations Research at Florida Atlantic University.