TQM practices in Costa Rican companies

As regional import barriers fall and trading blocks are formed, small nations become viable options for sourcing components as part of multinationals’ value chain activities. Such countries can seek to gain competitive advantage either through complex or simple endowment factors. Analyzes several TQM domains (those used within the criteria for the Malcolm Baldrige Award) to identify whether Costa Rica has the capability to provide a key complex factor: the ability to absorb quality management methodologies. Concludes that Costa Rican organizations do focus more on quality than on low‐cost volume production and have appropriately trained personnel. Points out areas where Costa Rican firms need to improve performance and particularly the need to incorporate quality management at the design phase.