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THE INFLUENCE OF QUALITY PRACTICES ON BH COMPANIES' BUSINESS PERFORMANCE

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Abstract:

This paper analyzed relationships between quality practices and business performance in Bosnian and Herzegovinian (BH) companies. The main goal was to measure the impact that quality dimensions: employee management, process orientation and customer orientation, have on business performance and the differences between the manufacturing and service sector. If firms' focus is correlated with customer needs and requests, these dimensions will improve customer satisfaction and thus create positive influence on business results.

Business results are represented by financial and market performance, and by integral dimension consisted out of: improvement of the business results, efficiency of the organization and utilization of the resources and business. Main findings of the research are that process orientation dimension has the highest influence in manufacturing/trading firms, while service firms can accept it, in certain circumstances, aiming to increase efficiency.

Service firms have to take into account services specificities and if it is in line with the requisites and preferences of customers, it will affect the business results positively. If service firm doesn't have strong processes, it must focus on the employee management, as the key resource of providing services to customers and creating customer satisfaction.

Keywords: business performance; customer satisfaction; employee management; marketing services; quality management

Document Type: Research Article

DOI: https://doi.org/10.5848/APBJ.2012.00029

Publication date: 2012-01-01

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  • The International Journal of Management Cases (IJMC) developed in 2002 from its predecessor The Journal of Management Cases, and present case studies across a broad range of management disciplines. The IJMC is the official journal of the CIRCLE Research Centre. CIRCLE (Centre for International Research Consumers, Locations and their Environments) is a virtual research group spreading over 70 universities.
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