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The Taiwan National Quality Award (TNQA) has been conducted for 14 years. However, small and medium‐sized companies (SMSCs) rarely win the TNQA. This study undertakes a capability analysis to explore how SMSCs do win the TNQA. A survey instrument involving 149 questions extracted from “the 2001 Handbook of Standard Criteria for Evaluation of TNQA” is used to measure the capability of SMSCs in competing for the TNQA. The paper concludes with a summary of the essential qualities required by an SMSC if it is to compete successfully for the TNQA.

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