Quality Management Approaches and their impact on firms’ financial performance (The Case of EFQM)

At the national level, attention to quality and efforts to its constant improvement, play the major role in economic development and neglecting these leads to the loss of domestic production and will increase imports. The model of excellence is a tool to reflect a comprehensive image of the organization. These models validate the performance of firms in implementing improvement programs at different period of times and also they are utilized as a driver for organizations and businesses for excellence, growth and earning money. The aim of this study is investigating the effect of the quality management on the Financial Performance Efficiency of companies and the impact of the equipment on the productivity improvements and labor and capital efficiency during the periods before EFQM certification and after that for the period of 1390 to 1393 through semi-longitudinal and cross-sectional data and the Wilcoxon test was used. Results indicate there is not any significant difference among financial variables ROA, ROS and VADLAB on financial performance and as a result, hypothesis based on the impact of EFQM Model on financial performance is rejected. It means the companies have failed in improving their financial performance and only the result of the test of third hypothesis of financial efficiency variable on financial performance has been significant CAPLAB.