TQM firms, risks identification and the use of non-financial performance measures: An empirical investigation

Both total quality management (TQM) and risk management (RM) are concerned with the realization of strategy. Some authors have recently focused on the potential integration of quality management and RM, highlighting the need of combining information to improve decision making. The exploratory study presented in this paper addresses the field of TQM and RM, to investigate the influence of the adoption of TQM on risk identification in a sample of large Italian firms. Further, drawing also special attention to the effects of the intangible resources, it examines differences on emphasis placed by firms on non-financial performance measures. The results are based on a survey and non-parametric statistical data analysis is employed. The sampled firms are divided in TQM firms and non-TQM firms, and comparisons are provided between the two groups of firms with reference to the importance placed on identification of strategic risks and to the emphasis placed on non-financial performance measures.