Competition, total quality management practices, and performance: Evidence from upscale hotels

Hotels operate in a highly competitive market and therefore place a strong emphasis on quality management in order to gain/maintain competitiveness. This research examined the relationship between total quality management (TQM), market competition, and hotel departmental financial and nonfinancial performance. The data were collected from a sample of Australian and Indian hotels using a self-administered postal survey. The results suggested that while TQM and market competition had a direct interactive effect on hotel departmental nonfinancial performance, the effect on the financial performance was indirect. It was also suggested that those hotels subscribing to TQM philosophy were more likely to thrive on competition.