International Journal of Quality & Reliability Management

A cross-cultural study of the differing effects of corporate culture on TQM in three

countries
Andres Sousa‐Poza, Halvard Nystrom, Henry Wiebe,
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IJQRM
18,7
744
Received March 2000
Revised October 2000
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International Journal of Quality &
Reliability Management,
Vol. 18 No. 7, 2001, pp. 744-761.
# MCB University Press, 0265-671X
The current issue and full text archive of this journal is available at
http://www.emerald-library.com/ft
A cross-cultural study of the
differing effects of corporate
culture on TQM in three
countries
Andres Sousa-Poza
Old Dominion University, Norfolk, Virginia, USA,
Halvard Nystrom and Henry Wiebe
University of Missouri-Rolla, Rolla, Missouri, USA
Keywords TQM, Implementation, Corporate culture, Ethnology
Abstract Explores the impact of cross-cultural differences on the facilitating effects of corporate
culture on the implementation of total quality management (TQM). Measures corporate culture
using the competing values model pioneered by Quinn and Rohrbaugh. Measures implementation
levels of TQM using a questionnaire developed at the University of Missouri-Rolla by Wu. Applies
these measures to 133 manufacturing companies in the USA, Switzerland and South Africa to
investigate the relationship between corporate cultures and the implementation of TQM. Using
canonical correlation analysis on the two variable sets (corporate culture and TQM), identifies the
relationships between corporate culture and TQM for each region. The results show that, in each
region, several distinct relationships between the dimensions of TQM implementation and
corporate culture exist. Also determines that the relationships differ between the regions, implying
that the application of TQM should take into account ethnological cultures. Makes conclusions
and recommendations for management action.
Summary of practical value
As global competition and mergers force organizations to expand
geographically across national and cultural boundaries, there is a greater need
to integrate organizations with different ethnological cultures. Since a
significant competitive advantage can be gained by organizations that can
effectively motivate and influence the behavior of their people, it is important to
understand the ethnological impact on the successful implementation of change
programs such as total quality management (TQM). This article clarifies the
impact of corporate culture on TQM implementation in an international
context. It provides specific insights into the impact of ethnological differences
on the implementation of TQM in the USA, Switzerland and South Africa. The
article provides additional insights on the effectiveness of corporate TQM
implementation policies as a function of their flexibility to deal with diversity
within the national or international workforce. It also provides direction for
managers developing policies to establish change programs such as TQM in
other areas of the world.
Introduction
In the decade of the 1990s, TQM received considerable criticism (see Harari,
1997). As a consequence, many management theorists in the West have now
 largely rejected this management style, even though it contributed to the global Differing effects
competitiveness of many Japanese organizations. A possible reason for this of corporate
rejection is that TQM has been very difficult to implement in European and US culture on TQM
organizations. Harari (1997) postulates that only 20 per cent of companies that
implement TQM do so successfully. On the other extreme, Yandrick (1994) is
more positive and claims that about two-thirds are successful. However, in the
companies that TQM has been implemented successfully, it has often provided 745
significant benefits.
There are a number of reasons why TQM has presented a significant
implementation challenge, including the innate complexities of TQM itself.
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TQM is commonly described as a management ``philosophy'', that provides a

shift in the manner that people within an organization think and act, and
consequently changes the way the organization does business (Luthans, 1995,
p. 30; Saylor, 1992, p. 6; Byrne, 1992). TQM is also associated with a number of
management tools or methodologies, such as statistical process control (SPC),
quality circles (QC), just-in-time (JIT), teamwork, empowerment and
benchmarking. According to Shiba et al. (1993, p. 28) TQM is not merely ``an
abstract philosophy'' but includes both concepts (a philosophy) and practices
(tools). A problem that arises from this definition of TQM is that it is very
broad and vague. Application of the management tools can be relatively
straightforward, since it requires limited modification in attitude and behavior.
However, implementation of the ``philosophy'' of TQM is more difficult because
it requires alignment in the way the members of the organization think and
behave.
As implementation issues have surfaced, solutions, ranging from increased
executive involvement to improved training, have been offered. Most recently,
corporate culture has been blamed for TQM-implementation failures (Utley et
al., 1997; Bowen and Lawler, 1992). McNabb and Sepic (1995) place extreme
importance on the influence of corporate culture on the successful
implementation of TQM:
Most if not all of TQM adoption failures ± and failures of other such change initiatives ± are
not failures of management. Rather, they may be attributed to deeper, more critical sources:
the fundamental, pervasive culture of the organization and the operating climate that culture
instills in its employees. Often, managers are victims of that culture, just as change itself is a
victim of the implementation process. In order to improve the odds of success when
attempting to introduce any change into organization ± especially TQM ± managers should
first comprehensively examine their organization's underlying culture and the operating
climate created and constantly influenced by that culture. These two characteristics
determine the readiness required for acceptance of the TQM philosophy (McNabb and Sepic,
1995).

However, there is limited empirical research to direct managers that attempt to

take corporate culture into account during their TQM implementation.
Recommendations are often made that companies should adopt a TQM-type
culture (Bright and Cooper, 1993; Morris, 1994), or ``provide a TQM
environment'' (Hunt, 1992, p. 7). However, what constitutes a TQM-type culture
 IJQRM or environment often follows the Japanese model proposed by Ishikawa (1986),
18,7 and therefore it can be difficult to apply in other cultures.
Kanji and Yui (1997) reinforce this view in a study that compares corporate
cultures of Japanese companies and UK subsidiaries of Japanese companies
that have implemented TQM. One of their most important findings is the range
in the characteristics of companies that have effectively implemented TQM in
746 the two countries. In Japan, there is very little difference in cultural profiles
between companies that have established TQM programs and those that have
not. This suggests that the underlying corporate culture of most Japanese
companies is very suitable for TQM implementation. However, in the UK the
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cultural characteristics of companies applying TQM were markedly different

than those that were not. This suggests that in the UK, only a subset of the local
companies have the characteristics required for implementation and that the
corporate culture of many UK companies is not naturally suited to the TQM
implementation. This apparent ethnological interaction might help to explain
some of the implementation difficulties in other parts of the world.
In order to address some of these regional and national differences, measures
described by Hofstede (1980) can be useful. Hofstede developed four work-
related dimensions for ethnological culture, which are: power distance,
uncertainty avoidance, masculinity and individualism. Hofstede has quantified
these dimensions for most major nations, and the values for the three nations
that are analyzed in this study and those for Japan are presented in Table I. It
shows large differences in most of the dimensions, showing that the
ethnological cultures in these three countries are different from each other, and
even more different than Japan. If these cultural values impact on the
implementation of TQM programs, it can also help to explain some of the
challenges for implementing these programs on a global scale.
Another area that has not been thoroughly studied is the direction of
causality between TQM implementation and corporate culture. It is unclear
whether corporate culture determines the success of the TQM implementation,
or if TQM modifies corporate cultures. This problem presents a paradox
similar to the job satisfaction-performance dilemma (Perrow, 1986; Aamodt,
1991).
Understanding causality is important for the generation of policies for TQM
implementation. If TQM causes the change in corporate culture, then a logical

Index USA Switzerlanda South Africa Japan

Power distance (PDI) 40 26 49 54

Uncertainty avoidance (UAI) 46 56 49 92
Individualism (IDV) 91 69 65 46
Table I. Masculinity (MAS) 62 72 70 95
Ethnological culture
a
dimensions Note: Source data specific for German speaking Switzerland (Hofstede, 1980, p. 230)
 strategy for global implementation would be to institute one strategy for the Differing effects
global organization. This simplifies the plan and creates a more homogeneous of corporate
structure, since the TQM implementation will largely modify the corporate culture on TQM
culture in each site into more favorable configurations. However, if only this
direction of causality were applicable, the modification of the corporate culture
would occur automatically, and corporate culture would barely have to be
considered. This does not appear to be the case, since considerable evidence 747
exists that identifies the importance of corporate culture to effective
implementation (Kanji and Yui, 1997).
If, on the other hand, appropriate corporate cultures are initially required to
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effectively implement TQM, the key to success is the identification of the

correct corporate culture to facilitate the introduction to TQM. Organizations
would then seek to acquire, create or modify local organizations to have an
appropriate corporate culture. However, if this were true, it would severely
limit the potential of TQM to impact on firms in regions where the appropriate
corporate cultures are not common.
It is reasonable to assume that there is a middle ground, a bi-directional
model in which an adequate corporate culture must be present to effectively
implement TQM. However, the implementation process can include activities
that explicitly modify the corporate culture, such as training and instituting
hiring practices to select new workers with characteristics that support the
desired corporate culture. In this bi-directional model, there is an opportunity to
introduce TQM into organizations that do not have precisely the appropriate
corporate cultures, since some modification is possible.
Given the importance of the corporate culture, there are two basic ways to
structure TQM implementation: one that uses a globally standardized
introduction plan, and one that is customized for regional and national
differences. If an effective corporate culture can be identified to support
successful implementation, then it is important to identify which cultures foster
success. Following on this path, Dellana and Hauser (1999) identified that
adhocracy and group cultures were most facilitating for TQM implementation.
If, on the other hand, the effectiveness of the TQM implementation plan is
dependent on the regional and national cultural differences, the implementation
plan should be ``adapted'' to the culture specific to the region in which it is being
implemented. Kekale and Kekale (1995) recommend this approach.
If an adaptive approach is used and the bi-directional causative model is
assumed, the implementation could occur as illustrated in Figure 1. Depending
on the region in which TQM is being implemented, different corporate cultures
may be utilized for its effective implementation. These cultures will affect
specific dimensions of TQM, which in turn will affect the corporate cultures.
Since it is unlikely that a company can change its culture merely by deciding to
implement TQM, the implementation and the corporate culture changes are
likely to occur simultaneously. This concept is further supported by
Trompenaars (1996, p. 51), who states ``strategy is a systematic way of acting
 IJQRM
18,7

748
Figure 1.
Inter-relationship
between TQM and
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corporate culture

on the environment. By definition this process is intimately related to the

cultural context in which it unfolds''.
This exploratory research seeks to determine if specific regional and
national cultures require different approaches to effectively implement TQM.
These approaches can be described by the characteristics of the corporate
cultures that foster TQM implementation. This research also seeks to clarify
the impact of corporate cultures on TQM implementation.
It is hypothesized that specific corporate cultures in different regions or
countries will focus on different aspects of the TQM implementation.

Method
This study is designed to assess if different corporate cultures have an effect on
the ease of implementation of TQM in different countries. In this paper, the
term cross-cultural study refers to research conducted between different
cultures as it is commonly applied in the social sciences (psychology, sociology
and economics). To do this cross-cultural study, quality management
implementation levels and corporate culture conditions are measured for
manufacturing companies in three different regions of the world: USA,
Switzerland and South Africa. The analysis in this paper forms part of a larger
research project that also analyzes the effects of the ethnological culture on the
corporate cultures (see Sousa-Poza, 1999).
The data-gathering instrument is a questionnaire consisting of three parts.
Section one measures select demographic information about the respondent
and the organization in order to make inferences from the results. Section two
measures corporate culture using the same questions as those used by Cameron
and Quinn (1999), Cameron and Ettington (1988) and Chang (1996). The model
underlying this form of measurement of corporate culture is the competing
values model pioneered by Quinn and Rohrbaugh (1981). The application of
principal component factor analysis resulted in grouping the corporate cultures
by four dimensions: people, outward, inward and task cultures, which are
described in Table II. By analyzing specific questions associated with each of
the dimensions, each region is typified using these four dimensions based on
the responses from the firms in those regions.
 Dimension Description Differing effects
of corporate
People-oriented The organization is a personal place that is perceived as an extension of culture on TQM
the family. Bosses behave as mentors that facilitate and co-ordinate
rather than give orders. This produces a participative and comfortable
climate where openness and trust exists. Work is done mainly in teams,
where consensus and participation are fostered without stifling
individual thought. In this open and free atmosphere, people are able
749
and willing to propagate their own opinions, and can afford to take
risks due to the high level of trust. Learning by trial and error is
common and permissible. Success is partially defined by the
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development of human resources and concern for people, which is

reciprocated by employees through loyalty toward the organization
Outward-oriented The head of this organization is a hard driving competitor and is often
characterized by entrepreneurs. He is generally a risk taker, although
this may not be a feature of the employees. The climate in the company
emphasizes competitiveness with regard to other companies. The
company seeks primarily to be the strongest relative to the competition,
and strives to be the first to the market. To this end, there is a high
degree of innovation and development. Management is characterized by
hard driving competitiveness where second best has no place
Inward-oriented These organizations are very structured and formal places. The climate
is one of stability and permanence. Procedures are well defined, and are
enforced implicitly and explicitly through rules and norms. Management
is characterized by its ``longevity'' and predictability
Task-oriented These companies emphasize the tasks that have to be done. The Table II.
achievement of goals is rewarded and is the glue that holds the Characteristics of
company together. The company is production oriented and defines corporate culture
success by the efficiency of operations and resulting low-costs dimensions

Section three of the questionnaire measures TQM implementation using the

questionnaire developed by Wu (1996) and Wu et al. (1997). Wu uses the
Malcolm Baldrige National Quality Award (MBNQA) as a model that generates
scores for key dimensions of TQM implementation. These dimensions are:
leadership (LEAD); information analysis (INFO); strategy (STRAT); business
results (BUSRES)[1]; human resources development (HR); process (PROC);
customer satisfaction and focus (CUST); and finally total score (TOTAL),
which is a linear summation of the seven basic dimensions.
The questionnaire was administered remotely and was only sent to
manufacturing companies in order to limit the amount of variation due to
differences between industries. In total, 293 managers from 133 companies
responded to the survey with a 16.2 per cent response rate, as summarized in
Table III.
In an effort to reduce the regional impact within each country, firms were
limited to specific regions. In the USA, firms were randomly selected from the
State of Missouri. In Switzerland firms were limited to the Germanic region,
and in South Africa the firms were selected from three industrialized regions,
the Vaal Triangle, Port Elizabeth, and Cape Town.
 IJQRM Companies
18,7 Country surveyed Responses Response rate (%)

USA (Missouri) 350 52a 14.9

Germanic Switzerland 220 29 13.2
South Africa 250 52 20.8
750
Total 820 133 16.2
a
Table III. Note: Although 52 companies responded to the survey, 49 companies are included in the
Summary of survey subsequent analysis due to incomplete questionnaires submitted by the respondents of three
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results companies

The companies were randomly selected from lists of manufacturing

organizations for the three regions. Each organization was sent several copies
of the questionnaire. Cameron and Ettington (1988) and Cameron and Quinn
(1999) recommend that more than one individual's perspective of each company
be surveyed to capture better the corporate culture. To facilitate the task for the
respondents, the survey was developed in two languages. The English version
was utilized in the USA and South Africa, and the German version was utilized
in Switzerland. The respondents classified themselves as primarily dealing
with one of the following categories of manufacturing, using the standard
industrial codes (SIC), and shown in Table IV.
Using Van der Wiele and Brown's (1998) classification for company size the
majority of companies in Switzerland and the USA are small (USA 50 per cent,
Switzerland 67 per cent). Both countries have sizeable representations of
medium (USA 25 per cent, Switzerland 22 per cent) and large (USA 25 per cent,
Switzerland 11 per cent) companies. In contrast, the greatest proportion of
companies in South Africa is large (81 per cent), with fewer medium (13 per
cent) and small (6 per cent) companies.

Number of companies/category
South
Code Category USA Switzerland Africa Total

20 Food and kindred products 7 5 10 22

28 Chemicals and allied products 4 3 2 9
34 Fabricated metal products 17 2 3 22
Industrial machinery and
35 equipment 2 6 10 18
Electronic and other electrical
Table IV. 36 equipment 4 2 7 13
SIC classification of 37 Transportation equipment 2 0 4 6
industries used and
response rates for each Other Other manufacturing industries 16 11 16 43
industry Total 52 29 52 133
 Results Differing effects
For each of the three countries, the four corporate culture profiles and the eight of corporate
TQM scores characterized the firms surveyed. The corporate culture and TQM culture on TQM
scores were controlled for the effects of company size and subsections of the
industry type. Using a Kruskal-Wallis test, it was found that the industry type
and company size factors did not provide any significant variances in either the
TQM or corporate culture score, as shown in Table V. The values in Table V 751
represent the significance measures. Values close to zero would indicate that
there is a significant effect due to either company size or industry type on the
measures of corporate culture or TQM implementation.
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Significant relationships between the corporate culture dimensions and the

TQM scores can be identified by performing a canonical correlation analysis on
the companies within each of the countries. The results of the canonical
correlation analysis are presented in Tables VI through VIII.
Canonical correlation analysis is used to capture the full picture of the
relationships between the individual dimensions of TQM and corporate culture.
Unlike regression analysis where a single dependent variable is analyzed at a
time, it includes all dependent variables simultaneously. It also takes into
consideration possible colinearities that exist within the variables sets.
The canonical correlation analysis creates a group of relationships between
two sets of variables. In Tables VI through VIII each relationship created is

Company size Industry type

South South
USA Switzerland Africa USA Switzerland Africa

Corporate culture
People 0.672 0.633 0.215 0.917 0.219 0.162
Outward 0.366 0.366 0.287 0.895 0.263 0.740
Inward 0.159 0.541 0.678 0.893 0.796 0.272
Task 0.439 0.337 0.335 0.823 0.541 0.566
TQM scores
LEAD 0.035 0.155 0.829 0.352 0.457 0.326
INFO 0.894 0.768 0.523 0.109 0.892 0.904
STRAT 0.682 0.611 0.902 0.162 0.431 0.334
HR 0.931 0.526 0.372 0.460 0.345 0.097
PROC 0.393 0.912 0.025 0.379 0.944 0.285
CUST 0.366 0.366 0.167 0.813 0.666 0.220
TOTAL 0.497 0.220 0.318 0.334 0.988 0.258
Notes
Kruskal-Wallis test significance scores
Allowing for a cumulative error due to multiple comparisons, corporate culture comparisons
are considered significant at the 0.0015 level using a Bonferroni correction with 12 groups Table V.
and alpha = 0.10 Effects of industry
Allowing for a cumulative error due to multiple comparisons, TQM score comparisons are type and company size
considered significant at the 0.0005 level using a Bonferroni correction with 21 groups and on corporate culture
alpha = 0.10 and TQM
 IJQRM Corr. Prop. of
18,7 Canon between S1 variance Sum of S2
rel. Canonical variable and S2a explained coeff.

CV1b S1 = 0.966 TASK 0.742 0.265

S2 = 0.624 INFO + 0.540 PROC + 0.483 (0.000) 0.210 1.119
LEAD ± 0.841 STRAT
752
CV2 S1 = 0.953 OUTWARD 0.579 0.239
S2 = 0.855 PROC ± 0.821 CUST ± 0.764 HR (0.014) 0.101 ±0.161
CV3 S1 = 1.016 PEOPLE 0.516 0.228
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S2 = 0.832 STRAT + 0.624 CUST ± 0.557 (0.091) 0.141 0.824

INFO
CV4b S1 = 1.030 INWARD 0.211 0.267
S2 = 0.743 PROC ± 0.982 INFO (0.625) 0.100 ±0.318
Notes
Table VI. Based on standardized canonical coefficients
a
Canonical correlation Significance in parentheses
b
results for Missouri Signs have been changed in S1 and S2 to explain relationships better

Corr. Prop. of
Canon between S1 variance Sum of S2
rel. Canonical variable and S2a explained coeff.

CV1b S1 = 0.989 INWARD 0.983 0.332

S2 = 12.350 HR ± 12.722 LEAD (0.000) 0.056 ±0.377
CV2 S1 = 0.841 PEOPLE + 0.804 OUTWARD 0.866 0.168
S2 = 0660 CUST + 0.452 PROC ± 0.606 (0.005) 0.199 0.629
LEAD ± 0.421 STRAT
CV3b S1 = 0.672 PEOPLE ± 0.647 OUTWARD 0.722 0.231
S2 = 3.916 HR ± 3.223 LEAD (0.124) 0.118 ±0.083
CV4 S1 = 0.938 TASK 0.358 0.269
S2 = 3.816 LEAD ± 4.755 HR (0.574) 0.253 ±0.452
Table VII. Notes
Canonical correlation Based on standardized canonical coefficients
a
results for Germanic Significance in parentheses
b
Switzerland Signs have been changed in S1 and S2 to explain relationships better

labeled CVi, where i is the number assigned to the relationship. Each

relationship CVi has two components S1 and S2 that are relationships created
from the variable sets 1 and 2 respectively. For example, CV1 in Table VI
represents the first relationship between the two data sets. CV1 has two
components, S1 which is a ``dummy'' variable extracted from the corporate
culture dimensions and S2, a ``dummy'' variable extracted from the TQM
dimensions. The strength of the relationship between S1 and S2 that is
 Corr. Prop. of Differing effects
Canon between S1 variance Sum of S2 of corporate
rel. Canonical variable and S2a explained coeff.
culture on TQM
CV1 S1 = 0.784 INWARD ± 0.551 TASK 0.953 0.268
S2 = 14.863 INFO ± 14.682 HR (0.000) 0.033 ±0.151
CV2 b
S1 = 0.967 PEOPLE 0.781 0.227 753
S2 = 3.830 INFO ± 3.554 HR (0.000) 0.189 1.075
CV3 S1 = 0.784 OUTWARD 0.484 0.270
S2 = 4.948 INFO + 1.352 CUST ± 5.632 HR (0.121) 0.185 0.908
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b
CV4 S1 = 0.700 TASK + 0.564 OUTWARD + 0.179 0.235
0.519 INWARD
S2 = 4.097 HR ± 3.671 INFO (0.709) 0.398 0.331
Notes
Based on standardized canonical coefficients Table VIII.
a
Significance in parentheses Canonical correlation
b
Signs have been changed in S1 and S2 to explain relationships better results for South Africa

determined by the strength of the correlation between the two components also
gives an indication of the strength of the relationship, CV1.
The total score is omitted from the canonical correlation analysis. Being a
composite dimension, the effects on the total score can be determined by
analyzing the overall effect on the seven contributing scales. Furthermore,
since canonical correlation analysis takes into consideration colinearities,
including the obviously co-linear total score, including this dimension would
only complicate the relationships without providing any information that
cannot be determined either indirectly or by other methods of analysis. A linear
regression is performed on the total as a direct means to determine the effects of
corporate culture on the total score and presented in Table IX.

Region Fuction
Coefficients Constant People Outward Inward Task

Missouri* 657.236***** 24.027**** 16.143 ±6.346 50.105*****

Germanic 666.531***** 94.423***** 44.967**** ±13.230 8.248
Switzerland**
South Africa*** 661.452***** 49.668**** 6.654 ±1.238 2.469
Notes
OLS regression using a stepwise enter methodology Table IX.
* Function significant at the p < 0.05 level; R2 = 0.554; ** Function significant at the Regression of TQM
p < 0.05 level; R2 = 0.666; *** Function significant at the p < 0.10 level; R2 = 0.403; total score as a
**** Coefficient significant at the p < 0.10 level; ***** Coefficient significant at the function of corporate
p < 0.10 level culture dimensions
 IJQRM In all three regions, two significant relationships between the dimensions of
18,7 corporate culture and TQM exist, and these relationships are different for each
of the regions. These relationships were identified using canonical correlation
and linear regression and are summarized in Table X. These relationships are
associated with higher TQM scores (and support them), or with lower TQM
scores (and hinder them), and are identified as follows:
754 . In Missouri, task culture provides the greatest facilitating effect on the
TQM dimensions: information analysis, process, and leadership. It,
however, negatively affects strategy. This culture is also associated with
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increases of the total score, based on the 1.119 factor on the last column
of Table X. An outward corporate culture supports process scores, but
hinders customer focus and human resource development.
. In Germanic Switzerland, Inward corporate cultures supports human
resource development scores but hinder the leadership scores and on the
total score. The combined effect of increasing people and outward
cultures supports customer focus, process and total but hinders
leadership and strategy.
. In South Africa there are two significant relationships between
corporate culture and TQM implementation. The first relationship
emphasizes inward corporate culture and minimizes task culture,
whereas the second relationship emphasizes people corporate culture.
Both relationships have a positive effect on information analysis and a
negative effect on human resource development. Increasing people
culture also supports the total score.

Increase in corporate Increases (TQM Decreases (TQM

Ethnological region culture score) score)

Missouri Task Information analysis Strategy

Process
Leadership
Total
People Strategy Information analysis
Customer
Total
Germanic Inward Human resources Leadership
Switzerland Total
Combined people and Customer Leadership
outward Process Strategy
Total
Table X. South Africa Contrast inward and Information HR
Summary of effects of task
corporate culture on People Information HR
TQM Total
 . To increase the total TQM scores in each region, different corporate Differing effects
cultures are indicated. In Missouri, task culture plays the dominant role; of corporate
in Switzerland, both people and outward culture are the most important; culture on TQM
and in South Africa people culture has the strongest positive effect.
Furthermore, inward culture appears to have a negative effect in all
countries, particularly in Switzerland.
. No corporate culture is identified that is associated with only positive 755
facilitating effects for either all of the TQM dimensions, in any region.

Discussion
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The results of this study support the hypothesis that specific corporate cultures
in different regions or countries have a different impact on the characteristics of
the TQM implementation. In each of the countries, the relationships between
the dimensions of corporate cultures and the dimensions of TQM
implementation are different. That is, a uniform implementation plan would
probably have different results in each of the three countries. This implies that
the implementation plan should be adapted to the ethnological culture specific
to the region in which TQM is being implemented.
This study also shows that the relationships between corporate culture and
TQM implementation do exist and are complex. Characteristics of specific
corporate cultures seem to provide a facilitating function for some dimensions
of TQM while deterring for others. Furthermore, these relationships are
different for each of the three countries. This implies that simple
implementation strategies are not likely to be effective on a global scale, which
is consistent with the experience of many firms. In addition, it supports the
view that corporate culture is an important factor to consider in the
development of policies for implementation.
Since this study focuses on the relationships between corporate culture and
TQM implementation, and not the causal factors, the results cannot determine
whether corporate culture causes the successful implementation, or the
implementation fosters and modifies the culture. However, the complexities
exhibited by the relationships make it more likely that a simple model that
ignores the impact of the corporate culture or the implementation strategy
would not reflect the real system. A model such as the one displayed in Figure 1
might be a reasonable choice since it integrates the adaptive approach to a bi-
directional causative model. However, this study is not eliminating other
potential causes for poor implementation. Recommended solutions, such as
increased executive participation and improved training, cannot be ignored
based on the results of this study.
To help discuss the results for each country, it is useful to utilize Hofstede's
measures of ethnological cultures. The varied relationships between corporate
culture and TQM can be based on the different approaches taken in each of the
regions due to differences in their cultures. Furthermore, the corporate culture
is also a function of the ethnological culture (Fukuyama, 1995; Hofstede, 1991;
Trompenaars and Hampden-Turner, 1998; Sousa-Poza, 1999).
 IJQRM What aspect of Missourian culture makes a task culture more facilitating for
18,7 TQM implementation? Or for that matter, a combination of people-outward
cultures in Switzerland or, people culture in South Africa? Missourians are
described as being fiercely individualistic people. Furthermore, Americans[2]
also have high power distance (Hofstede, 1980). The combination of high
Individualism and power distance results in an emphasis of task culture
756 characteristics in organizations (see Sousa-Poza, 1999). Consequently,
companies that emphasize aspects of TQM that engender similar
characteristics seem to have a better chance of successfully implementing
TQM. Companies that attempt to reform their corporate culture to emphasize a
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stronger people orientation, and to better suit the original Japanese models, will
be implementing a corporate culture that may not be sustainable given the
Missourian's ethnological culture. Individuals tend to not follow prescribed
behavior when it is in conflict with their ethnological cultural values. This
dynamic interaction is well documented by Davila-Trueba's (1991) study of
USA supervisory training approaches in Mexico. However, the findings
regarding which corporate cultures facilitate TQM implementation contradict
the results found by Dellana and Hauser (1999), who found that adhocracy
(outward) and group (people) cultures are most facilitating for TQM
implementation. The differences in the results may be due to the fact that
Dellana and Hauser (1999) do not allow for a company to exhibit characteristics
of more than one culture type. They apply the competing values model in its
original format, where each organization is defined by a single culture. This
form of categorization might be too restrictive to capture fully the ``essence'' of
an organization's culture.
A similar argument can be made for Switzerland, where power distance and
individualism are very low. In this environment, it is found that people cultures
are very effective mechanisms to achieve desired goals (see Sousa-Poza, 1999).
The low individualism score also results in an emphasis of outward cultures.
Consequently, it should come as no surprise that a combination of these two
corporate cultures creates a facilitating atmosphere for the implementation of
TQM. This can be further supported by qualitative factors. Germanic Swiss
education and training still follow a traditional artisan structure with extensive
apprenticeships. Furthermore, in German, there is no indigenous word for
manager. In fact, the English word ``manager'' is most commonly used when
needed. Management is also commonly viewed as a level that one achieves
within a profession or trade rather than a distinct job. It is therefore common
for individuals in leadership positions to have been workers. In addition, very
few titles are used in traditional Germanic Swiss organizations. Commonly
only the titles, Prokurist and Direktor have been used, contributing toward a
corporate culture that exhibits strong people characteristics. However, firms in
Switzerland are becoming increasingly ``Americanized'' in their structure and in
the use of terms and titles such as consultant, manager and CEO.
South Africa presents an anomaly in that the ethnological culture of most
managers tends to differ greatly from that of the general populace, and
 consequently, the work force. Managers are still commonly affluent whites, in a Differing effects
population that is mostly dark. The ethnological culture that one perceives of corporate
when dealing with managers is generally not applicable to the whole culture on TQM
population. This discrepancy has opened great opportunities for management,
in that a realignment of the corporate culture to better include the indigenous
ethnological cultures can improve company performance (Mbigi and Maree,
1995). In this study, it manifests itself by showing a people culture is associated 757
with an enhanced TQM implementation. Cultures that pay heed to the
development of employees may also take their particular ethnological culture
into consideration. In comparison to the other regions in the study, South
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Africa has the lowest individualism scores and consequently emphasizes

outward corporate culture. The high masculinity index, however, reduces the
people culture dimension, which is associated with improved TQM
implementation. It would appear that the corporate culture that is emphasized
by the ethnological culture[3] is not aligned with the corporate culture best
suited for the populace as a whole. This could imply that South Africa, due to
particular problems of reintegration of blacks into society, will have the
greatest problems implementing TQM.
It is troubling that in South Africa an increase in the people dimension of
culture results in a decrease in the human resource development dimension in
the TQM model. As mentioned, in South Africa an even distribution of jobs
according to the racial and ethnic profile of the country does not exist yet. By
surveying only managers[4] a bias was induced, as their perspective of culture
will not match that of the general population and workers. Consequently, the
interpretation of what good human resource development is, or what good
management is by those managers may in effect not be one shared by the
workforces.
Each region or nation shows different relationships, implying different
possible approaches to enhance the chance of successful TQM implementation.
One approach to reach success is to assess what corporate cultural strength
must be emphasized, or what weaknesses must be overcome and try to modify
the corporate culture. A second option lies in adapting TQM to better suit a
corporate culture that is more easily attained. For instance, in Missouri, TQM
techniques should be used that are quantitative, such as statistical process
control, and set specific goals using techniques such as benchmarking or
management by objectives. This is supported indirectly by Knutton (1995,
p. 59), who states that irrespective of the method used to implement TQM,
``TQM will fail unless your people know what is expected of them''. In
Switzerland, applications such as quality circles, teamwork, or Ford's QWL
teams should be applied. In South Africa, a completely different approach may
be required, by paying attention to very specific needs of the worker's
ethnological culture. These recommended strategies are presented in Figure 2.
These results also imply that in each region, there might be a ``best''
corporate culture depending on the ethnological culture (particularly in
Germanic Switzerland and Missouri). This supports researchers that often
 IJQRM
18,7

758

Figure 2.
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TQM implementation
strategies

make a single recommendation for each area (Fukuyama, 1995; Ettorre, 1996;
Trompenaars, 1996). However, this may be more a result of over-generalization
than precise analysis. For instance, the ethnological values used are assumed
uniform across the entire regions in question. This may not be the case, as the
labor pools from which each company within a region draws its employees
may differ in culture from the rest of the region in question. In addition,
different firms have significantly different corporate cultures. It is therefore
imperative that management be aware of the particular ethnological culture of
its employees. This is particularly true of South Africa, which, due to the
homelands created by apartheid, remains very segregated, not only across
racial lines, but also between ethnic tribal groups.

Summary and conclusions

The results of the empirical analysis show that for each of the three regions,
different aspects of corporate culture have facilitating or inhibiting
consequences on the implementation of TQM. In addition, the relationships
documented by the canonical correlation analysis show that the relationships
are quite complex. It is found that none of the corporate culture dimensions has
only positive associations with the dimensions used to measure TQM. For
instance, it is found that a strong task culture in Missouri is positively related
with information analysis, process and leadership dimensions of TQM, but
negatively related with strategy. Consequently, each organization should judge
what areas of its corporate culture to emphasize depending on what aspects of
TQM it wishes to improve.
This study uses an unconventional approach that emphasizes the
relationships between the elements of TQM and corporate culture. In this
research, no attempt is made to determine if there is a single most effective
corporate culture to implement TQM, as is commonly the case (Chang, 1996;
Chang and Wiebe, 1996). This is because the effects of corporate culture are
probably too complex to allow for the prediction of a single corporate culture
that would be ``most'' suitable for the implementation of TQM. The use of
 canonical correlation analysis is also unconventional. This statistical Differing effects
methodology has widespread use in many of the social sciences, but is not often of corporate
applied to management practice research. culture on TQM
To conclude, this study finds that TQM implementation is a complex
program that has a strong relationship with the organization's corporate
culture. Consequently, no standard implementation strategy or ``ideal''
corporate cultures can be recommended for global application. The study 759
suggests that the complexities of the TQM implantation strategies require an
adaptive approach that takes advantage of the opportunities and strengths
available to the organization, taking into account the threats and weaknesses. If
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true, this makes the success of change programs such as TQM dependent on
leadership that is sensitive to local needs and adaptive to cultural conditions.
Notes
1. The dimension BUSRES is excluded from the ensuing empirical analysis. It is not well
defined in the original construct by Wu (1996) and Wu et al. (1997). The dimension is
furthermore highly correlated to the information analysis dimension, which is included in
the analysis.
2. Note that characteristics of Americans (USA) are applied to Missourians. This is deemed
permissible as Missouri forms part of the USA. A converse generalization can, however,
not be made, i.e. the results of this study are not extendable for the whole of the USA. This
would represent a cross-level-fallacy (Hofstede et al., 1993).
3. The researchers postulate that the ethnological dimensions presented by Hofstede (1980)
are primarily a measure of manager's ethnological culture rather than that of the whole
population. Given that Hofstede collected data in the late 1970s, while the apartheid regime
was still strongly in power, this is not unreasonable. Later research on ethnological culture
by Trompenaars and Hampden-Turner (1998) also suggests this.
4. In South Africa approximately 68 per cent of managers are classified as South African
Whites, 2 per cent South African Blacks, and 30 per cent as expatriates from Europe, the
USA and Asia.

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