The effects of technology and TQM on the performance of logistics companies

Purpose – Total quality management (TQM) and technology are fast becoming essential features of business strategy for the success of many leading organizations in the world. More and more companies are using technology and adapting TQM for sustaining competitiveness in the marketplace. TQM works well for internal integration of logistics companies and they can benefit from the use of technology, including information technology (IT), to gain further internal and external integration. Seeks to examine this issue. Design/methodology/approach – This research examines the relationship between quality management practices, technology and performances of the logistics companies. The study seeks to gain insights from organizational variables and their effect on operational, quality, technology and overall business performance. Findings – TQM and technology play important and complementing roles in improving the performance. The analysis shows that both high technology firms and high technology TQM firms perform significantly better than their low technology peers. Research limitations/implications – The use of IT is crucial in improving operational, quality and overall business performance. The information and management technologies strongly correlate to TQM and serve as an enabler to quality performance. Practical implications – The use of technology assists logistics operations in many ways, such as cutting down information and processing lead‐time, improve efficiency and minimize errors to the minimum. Perhaps, the logistics companies should look at the long‐term benefits of technology and gradually engage its use to streamline their operations. Originality/value – The results in this research provide recognition for the importance of technology in quality management in the logistics industry.