An increasing number of organisations in developing countries are implementing management accounting innovations in order to generate improvements in accounting practices, which should ultimately impact on financial performance. This study aims to focus on the implementation of one such innovation, total quality management (TQM), among apparel companies in Sri Lanka, to determine the impact on business strategy, management practices and performance reporting.
A survey is conducted of Sri Lankan companies to identify differences in their management practices depending on whether or not they have implemented TQM.
The results demonstrate a significant difference in the business strategy implemented by the two groups, with those companies adopting TQM regarding quality as more important than cost efficiencies. Significant differences in both quality management practices and performance reporting systems were observed, except in the area of employee empowerment.
The research is subject to the normal limitations of survey research, and its scope means that the findings may not be generalisable to industries other than garment manufacturing, or outside Sri Lanka. The findings should motivate comparative studies to determine the influence of both industry setting and national culture on the results.
The absence of employee empowerment is an important finding, with long‐term implications for the competitiveness of the Sri Lankan apparel industry, suggesting that corrective action is necessary.
The study is one of the few to examine improvements in organisational performance in developing countries.
Malmadana Kapuge, A. and Smith, M. (2007), "Management practices and performance reporting in the Sri Lankan apparel sector", Managerial Auditing Journal, Vol. 22 No. 3, pp. 303-318. https://doi.org/10.1108/02686900710733161Download as .RIS
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