Does Quality Management Improve Performance? A Longitudinal Multilevel Approach

Informações

Código: GOL1725
Divisão: GOL - Gestão de Operações e Logística
Tema de Interesse: GOL-A - Operações Industriais e de Serviços

Autores

Luiz Artur Ledur Brito, Alexandre Pignanelli, João Mário Csillag

Resumo

The paper introduces a new approach to investigate the relationship between qualitymanagement and financial performance: the multilevel modeling. It offers unique advantages,like the measurement of variables and variances at each level and the recognition of thenatural hierarchical structure of the data overlooked in traditional methods. A sample of firmsacknowledged by the Brazilian National Quality Award (PNQ) had its financial performanceover 20 years compared with a control group formed by companies from the same sectors. Intotal, 10,389 observations from 2,364 companies were used. The performance was separatedinto profitability and growth, and the results revealed a positive relationship between qualityand performance only for profitability. The analysis of longitudinal data with the multilevelmethods showed no evidence that this profitability improves over the time, suggesting theexistence of a covariation link, rather than a causal link, between quality and profitability.

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