| Abstract: | Maquiladoras, border factories and assembly operations in Mexico, are an important source of foreign direct investment and jobs. In the past decade, there has been rapid growth in the number of maquiladoras. It is estimated that in 1999 there were 3,219 maquiladoras employing over 1 million workers. Along with this growth, there has been a structural transformation of the industry. As a result of major investments in the automobile and electronics sectors, there has been a shift from low‐wage manufacturing towards total quality manufacturing TQM], including flexible manufacturing and just‐in‐time inventory systems. Since their inception maquiladoras have suffered from high turnover and absenteeism. These two problems serve as major obstacles to the successful implementation of TQM programs and increase the cost of recruitment and training. This paper surveys the literature and presents a theory that relates the success of TQM programs to cross‐cultural management. Our hypothesis is that strategic quality initiatives like TQM work best when they incorporate top leadership involvement and worker‐focused human resources policies integrated to provide both salary and non‐salary benefits that increase worker satisfaction. We hold that effective cross‐cultural management based upon top leadership involvement responds to deep‐seated cultural needs by constructing approximations of traditional elements of Mexican culture. Therefore, incorporating and respecting traditional culture and the worker's need for community will positively influence worker acceptance of TQM programs and reduce turnover. |
