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The aim of this study is to research into the relationship between growth in manufacturing companies in the state of Sao Paulo, Brazil, and the adoption of Total Quality Management (TQM) and innovation indicators, applied to products and processes. The authors analyzed data collected by SEADE in 1996 and 2001 in 2,278 organizations of different industrial sectors, and conducted a review of the relevant literature, to provide the necessary conceptual basis in order to refine and compare data, correlating both Innovation and TQM activities, and company growth. The research tools used were the statistical technique of multiple regression and correlation analysis. The results indicate that TQM and Innovation efforts have significant influence on the growth of companies. The analysis also facilitated the comprehension of related subjects underlying the main theme that were revealed during the study, such as the fact that TQM exerts a more significant influence on process innovation than on product innovation.

THE INFLUENCE OF TQM AND INNOVATION ON THE GROWTH OF MANUFACTURING COMPANIES IN THE STATE OF SÃO PAULO, BRAZIL