TQM-A predecessor of ERP implementation

Is total quality management (TQM) a predecessor of enterprise resource planning systems (ERP) implementation? This question draws a lot of interest from business managers. Many firms intend to implement both TQM and ERP systems to match the market competition. The question is: Which system should be implemented first? Using US manufacturing companies that have a focus on TQM and have implemented ERP systems, this study examines the relationship among TQM, ERP implementation, operations performance, customer satisfaction, and a firm's performance and subsequently provides a better understanding about the synergistic relationship between TQM and ERP implementation. Structural equation modeling is applied to analyze the data from 154 manufacturing companies in the US. We argue that TQM is a philosophy that emphasizes process improvement, whereas an ERP system is an IT mechanism that implements enterprise-wide process management. Conceptual development and our findings suggest ERP implementation can be successful if it is preceded by a TQM focus. (C) 2008 Published by Elsevier B.V.