Article

 

The relationship between TQM and financial performance of Greek companies of structural construction sector during crisis period (p.61-78)

by

G. Kampouridis, Technological Educational Institute of Western Greece

A.Ch. Yiannopoulos, Technological Educational Institute of Western Greece

G.I. Giannopoulos, Technological Educational Institute of Western Greece

S.A. Tsirkas, Technological Educational Institute of Western Greece

Keywords : Quality, Financial performance, Quantitative analysis, Economic recession

JEL classification : L61, L74, M11

Abstract

The aim of this paper is to contribute, through a quantitative analysis, in the investigation of an important problem: What is the impact of ISO 9001:2008 certification and Process Management practices on the financial performance of companies in structural construction industry during the years 2008-2011 of deep economic recession in Greece. The financial and social crisis in Greece has had a major impact in the field of structural construction industry with extremely negative impact not only on financial outcomes but also on the viability of some of them. The work is based on published financial statements, official presentations of the companies in their respective websites and selected interviews with managers - owners. It is shown, that companies that regularly use - both in production and administration - process management practices had less negative impacts in terms of liquidity and efficiency. Nevertheless, it seems that total quality management utilized techniques could not prevent undesirable effects regarding profitability and solvency.