An empirical study of TQM practices in Japanese‐owned manufacturers in China

Purpose – The main purpose of this study is to explore the relationship between TQM practices and the business performance of Japanese‐owned manufacturers in China. Design/methodology/approach – In this study, 200 companies out of the universe 1000 were chosen by random sampling in June 2002. Findings – A total of 52 usable questionnaires were received and the overall response rate was 26 percent. The survey results show that TQM practices influence overall company performance significantly in Japanese‐owned manufacturers in China. This implies that TQM is an effective method to improve business performance regardless of where the company might be operating as long as the TQM practices are implemented appropriately. In addition to the research data, findings from a field study also provide supplementary evidence to support this conclusion. Originality/value – The findings based on the empirical research would be useful to both decision makers and researchers who are interested in this growing “factory of the world”.