Gears as leaves on a tree, Process Quality Management

Decoding Innovation: How Process Quality Management Drives Success in Emerging Markets

Elliot Brynn in Business & Economy June 2025 • 4 min read.

"Unlocking the Secrets of Process Quality and Technological Advancement for Competitive Advantage"

In today's rapidly evolving global economy, businesses are constantly seeking ways to enhance their competitive edge. Process quality management (PQM) has emerged as a critical strategy, particularly for firms operating in emerging markets. These markets, characterized by unique challenges and opportunities, require a nuanced approach to innovation and operational excellence. Understanding how PQM interacts with technological innovation is essential for sustained growth and success.

Emerging markets often present an environment of both high potential and significant uncertainty. Companies in these regions must navigate complex institutional landscapes, overcome information asymmetries, and build trust with potential customers. Employing process quality management serves not only as a mechanism for internal control and efficiency, but also as a signal of reliability and competence to external stakeholders. This dual role of PQM—enhancing efficiency while conveying valuable information—makes it a strategic imperative for firms in these dynamic markets.

This article delves into the intricate relationship between process quality management and technological innovation, examining how firms in emerging markets can leverage PQM to drive both explorative and exploitative innovation. We'll explore the contingency perspective, highlighting how local institutional quality moderates the impact of PQM on innovation outcomes. By understanding these dynamics, businesses can optimize their strategies to achieve originality, efficiency, and sustained competitive advantage.

What is Process Quality Management and Why Does It Matter in Emerging Markets?

Gears as leaves on a tree, Process Quality Management

Process Quality Management (PQM) encompasses the managerial practices and associated programs designed to ensure consistent and high-quality outputs. Since the 1980s, PQM has evolved into a cornerstone of organizational strategy, focusing on continuous improvement, variation reduction, and enhanced efficiency. For businesses in emerging markets, PQM is more than just a set of operational guidelines; it's a strategic tool that addresses unique challenges.

In emerging markets, several factors amplify the importance of PQM:

Information Asymmetry: Emerging markets often suffer from a lack of reliable information, making it difficult for customers to assess the quality and reliability of products or services. PQM provides a signal of trustworthiness, reducing perceived risk for potential customers.
Institutional Voids: Weak institutional frameworks can create uncertainty and increase transaction costs. PQM helps firms establish internal controls that compensate for these external deficiencies.
Accelerated Learning: Firms in emerging markets must rapidly acquire and implement new knowledge to compete effectively. PQM facilitates this learning process by providing a structured approach to improvement and innovation.
Symbolic Logic: Adopting PQM practices conveys valuable information to potential customers, signaling a commitment to quality and reliability. This is particularly important in markets where trust is paramount.

By effectively managing process quality, emerging market firms can enhance their originality and maintain efficiency, even when faced with challenging local institutional conditions. The successful implementation of PQM becomes subjective to the local institutional quality, enhancing the potential for overall success and sustainability.

Final Thoughts: PQM as a Catalyst for Innovation and Growth

Process Quality Management is not merely an operational tool; it is a strategic asset that enables firms in emerging markets to navigate complexities, build trust, and drive sustainable innovation. By understanding the interplay between PQM, technological innovation, and institutional quality, businesses can unlock new opportunities for growth and establish a strong competitive advantage in the global landscape. As emerging markets continue to evolve, the strategic importance of PQM will only continue to grow.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1007/s10961-018-9710-4, Alternate LINK

Title: Process Quality Management And Technological Innovation Revisited: A Contingency Perspective From An Emerging Market

Subject: General Engineering

Journal: The Journal of Technology Transfer

Publisher: Springer Science and Business Media LLC

Authors: Jie Wu, Zefu Wu, Kathryn Rudie Harrigan

Published: 2018-11-16

Everything You Need To Know

What exactly is Process Quality Management (PQM) and why is it so vital for businesses operating in emerging markets?

Process Quality Management (PQM) refers to the managerial practices and programs aimed at ensuring consistent, high-quality outputs. Originating in the 1980s, PQM emphasizes continuous improvement, reducing variation, and enhancing efficiency. In emerging markets, PQM is crucial because it helps address challenges like information asymmetry by signaling trustworthiness, compensating for institutional voids through internal controls, accelerating organizational learning, and conveying a commitment to quality, which builds customer trust and enhances competitive advantage.

What key factors in emerging markets amplify the importance of Process Quality Management (PQM) for companies?

In emerging markets, information asymmetry, institutional voids, and the need for accelerated learning make Process Quality Management (PQM) particularly important. Information asymmetry makes it hard for customers to assess product quality, so PQM signals trustworthiness. Institutional voids, such as weak legal systems, are compensated for by PQM's internal controls. Accelerated learning is supported because PQM provides a structured approach to improvement and innovation. The symbolic logic is also crucial, PQM adoption signals a commitment to quality, building trust where it is most needed.

How does Process Quality Management (PQM) foster both explorative and exploitative innovation in emerging market companies?

Process Quality Management (PQM) can drive both explorative and exploitative innovation by providing a structured framework for continuous improvement and efficiency. It is particularly effective when local institutional quality is strong. By improving operational efficiency and signaling reliability, PQM enhances trust and reduces perceived risk, fostering an environment conducive to both incremental and breakthrough innovations. Firms can optimize strategies to achieve originality, efficiency, and sustained competitive advantage by understanding this relationship.

In what ways can Process Quality Management (PQM) help firms in emerging markets enhance originality and maintain efficiency?

Firms in emerging markets can use Process Quality Management (PQM) to enhance their originality while maintaining efficiency by implementing PQM practices to improve operational effectiveness. This allows firms to compensate for institutional weaknesses and build trust with stakeholders. The contingency perspective also plays a part; understanding how local institutional quality moderates the impact of PQM on innovation outcomes enables businesses to balance originality with efficiency, thus achieving a competitive edge.

How does Process Quality Management (PQM) contribute to sustainable innovation and long-term growth for firms in emerging markets?

Process Quality Management (PQM) enables firms in emerging markets to navigate complexities and build trust. By focusing on continuous improvement, PQM helps firms adapt to rapidly changing market conditions and meet evolving customer needs. It is a strategic asset that drives sustainable innovation and fosters long-term growth. The interplay between PQM, technological innovation, and institutional quality allows businesses to unlock opportunities and establish a strong competitive advantage. As emerging markets evolve, the strategic importance of PQM will continue to grow, making it essential for firms seeking to thrive in the global landscape.