An Investigation on the Influence of Total Quality Management on Financial Performance the Case of Boutan Industrial Corporation

Nowadays, the quality of products has become one of the critical subjects in organizations to satisfy customers and gaining profit. In this respect, Total Quality Management (TQM) is recognized as one of the popular and effective systems in organizations. Although advantages of TQM are enormous, its implementation is justified only when it has a meaningful and considerable impact on financial performance of organization. The main aim of this paper is to investigate the influence of TQM on financial performance in Boutan Industrial Corporation. For this purpose, relevant literature is reviewed and the six ratios are considered for study as the most popular indicators of the financial performance and statues of organization, which include current ratio, quick ratio, return of assets ratio, return on equity ratio, debt to total assets ratio, and total assets turnover ratio. The findings of the investigation imply that almost all of the hypotheses are confirmed at 95% level of confidence, indicating that TQM can have strong and positive influence on financial performance and status of the organization.