Total quality management in a joint-venture company: a case study

Summary form only given. Researchers have claimed that partnerships such as joint ventures and licensing often lead to the transfer of valuable technological knowledge to partners, which can be detrimental to an innovating firm. In many situations, however, more benefits than losses come from the technology transfer. A case study presented in this paper illustrates benefits of both technology and management practices, especially TQM transfer in Silesia Mill, a company located in Rybnik, Poland. This company became a part of the Rettig Group, which is a family owned Finnish group of companies. As the era of communism ended, the Silesia Mill started to experience many difficulties. One of the possible solutions was a cooperation with a firm who would help with a new product and with money. After many talks and negotiations with the Rettig Group, who started marketing their radiators in Poland, an agreement was signed. The new firm, called Rettig Silesia, Ltd. came into being. A special TQM program was installed in this new company and every employee received necessary training. In November 1995 the firm obtained the ISO 9002 certification granted by the British Standard Institute (BSI). Technological investments done by Rettig Group and the decisions made by the top management together with the employee involvement were crucial in achieving success. Everyone in the company understood that the product must have an outstanding quality in order to compete in the European markets.