In this study, we investigate the transferability of TQM practices to offshore manufacturing firms by validating direct and indirect relationships among top management commitment, HR-focused TQM practices, employee satisfaction, and employee loyalty. Our research objective is to isolate critical TQM practices that would enhance employee satisfaction and loyalty among maquiladora workers. On-site surveys were conducted at two leading maquiladora firms that have long implemented TQM. The statistical results indicate that employee empowerment, teamwork, and employee compensation have a significant and positive influence on employee satisfaction. The improved employee satisfaction leads to a higher level of employee loyalty. In addition, the results indicate that the effects of top management commitment on employee empowerment and teamwork are significantly mediated by employee training, implying that the success of employee empowerment and quality teams can be dependent upon the level of employee training.

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Journal of Operations Management
Sprott School of Business

Jun, M. (Minjoon), Cai, S, & Shin, H. (Hojung). (2006). TQM practice in maquiladora: Antecedents of employee satisfaction and loyalty. Journal of Operations Management, 24(6), 791–812. doi:10.1016/j.jom.2005.09.006