The effect of total quality management practices on business performance and the moderator role of internal and external audits effectivity

Total quality management is applied by businesses to increase their financial and customer performance. Quality management system standards guides the implementation of total quality management practices in a business. Businesses establish and implement this systems in accordaning this standard. In addition, it has become a necessity to continuously improve the quality management system practices in order to ensure the sustainability of the system. The effectiveness of internal and external audits in total quality management practices; It is important to have a positive effect on the performance of the quality management system, to have truth information about the current situation of the businesses and to obtain data for the future decisions. The aim of study is to investigate the effects of total quality management practices on the financial and customer performances of businesses and the regulatory role of internal and external audits. In this study, firstly, a scale related to internal and external audit activities for quality management system performance measurement was developed and then the effect of this scale on total quality management practices and financial and customer performances of businesses was investigated. In this direction, the data obtained by applying the survey technique to the businesses with ISO 9001 Quality management system certificate in Turkey were analized. These surveys were analyzed by using SPSS and AMOS computer programs. As a result of these analyzes, it was found that there is a statistically significant positive relationship between total quality management practices and financial and customer performance. The effectivity of internal audits has a positive and the effectivity of external audits has a negative regulatory role. In other words, the effect of total quality management practices on financial and customer performance, the financial and customer performance of businesses increases with the increase in the effectivity of internal audits. On the other hand, the effect of total quality management practices on financial and customer performance, the financial and customer performance of businesses decreases with the increase in the effectivity of external audits. Keywords: Total Quality Management, Quality Management system, İnternal Audit, External Audit, Business performance