Exploring the Causal Relationships in the Criteria for Excellence Performance of China

Since the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China published the GB/T19580‐2004: Criteria for Excellence Performance of China, many enterprises in China have adopted the Criteria to enhance their organization business management and to assess or self‐assess organization performance. On the bases of both the Criteria for Excellence Performance of China and the survey data from China Association for Quality (CAQ), this paper systematically explores the relationships among “leadership”, “strategy planning”, “customer and market”, “information, analysis and improvement”, “resources management”, “process management”, and “performance results” by using structural equations modeling and validates some of the anecdotal beliefs in quality management. This quantitative analysis provides a guideline for organizations in China to identify causal linkage among core value of total quality management and to identify strengths, deficiency, and opportunities to enhance competitive advantages and ensure the future business success.