Quality/productivity practices and company performance in China

Examines the relationships between quality and productivity improvement approaches currently adopted by Chinese firms and the quality, operating, and financial performances of these firms. Three major hypotheses were formed, namely: a company’s quality performance is correlated to its quality and productivity improvement approaches; a company’s operation performance is correlated to its quality and productivity improvement approaches; and a company’s financial performance is correlated to its quality and productivity improvement approaches. The hypotheses were tested by using sample data collected from 373 companies in the People’s Republic of China. The first two hypotheses were confirmed, although the second was only weakly supported. The findings of this paper are to large extent consistent with those of previous studies.