Business Model Innovation Is Using by TQM? The Case of Formosa Chang Franchises Chain Restaurant

Yung-Lung Lai, Song-Ching Fan
(College of Business, Feng-Chia University, Taichung 40274, Taiwan)

Abstract: This study aimed to explore the relationship between total quality management (TQM) and the business model, propose that TQM can affect the business model innovation for the food service industry. In order to provide persuasive data to further demonstrate that an organization could influence business model innovation using TQM, this study adopted a case study method to verify that the theoretical framework is consistent in explaining this concept. Thus, Formosa Chang restaurant was chosen for the case study which the business volume was ranked first in Taiwan by IMD 2012 reports. The case studied here belonged to the food service industry, which has a significantly low value in the supply chain. It is noteworthy that different industries value different business model elements, and may gain different results when promoting TQM. The business model innovation could be stimulated by establishing a TQM culture of benchmark learning.

Key words: business model innovation; TQM; street vendor; international chain and franchise

JEL code: L80