International Journal for Quality Research 7(4) 479–492 ISSN 1800-6450 479 Rashmi Srinivas 1 Swamy D R Article info: Received 25 November 2013 Accepted 9 December 2013 UDC – 65.012.7 QUALITY MANAGEMENT PRACTICES IN RURAL AND URBAN SMEs – A COMPARATIVE STUDY Abstract: The level of awareness on Quality Management Practices (QMP) has increased considerably over the last decade, but the literature findings reveal the lack of studies on QMP and its implementation in rural SMEs. The exploratory research focuses on identifying, analysing and comparing the level of QMP implementation in urban and rural Small and Medium Enterprises (SMEs) in Bangalore. The research hypothesis is that, urban and rural SMEs would differ significantly in implementation of different quality practices. Data was collected through structured questionnaire and analyzed using F-test and chi-square test, as appropriate, to detect the statistical significance of QMP implementation in urban and rural SMEs. The research findings suggest that research, rural firms are performing at a higher level of sophistication and experience in QMP, further, TQM is the major drive for QMP implementation. Keywords: Quality Management Practices, Small and Medium Enterprises, TQM 1. Introduction 1 In a globally changing landscape characterized by continuous structural changes and enhanced competitive pressure, the role of Small and Medium Enterprises (SMEs) in society has become even more important as providers of employment opportunities and key players for the well- being of local and regional communities. SMEs are fundamental part of the economy in developing countries, and they play a significant role in further growth, innovation and success. Globalization and liberalization has led to new opportunities as well as challenges for SMEs. It is very vital for 1 Corresponding author: Rashmi Srinivas email: rashmi_srinivas.8127@yahoo.com SMEs to identify and exploit these opportunities and deal with the challenges. Meanwhile, in order to compete and sustain competition at the global level it is essential for SMEs to emphasize on quality and ensure that quality is integrated into all aspects of products, processes, and services. Quality management practices have become widespread among the SMEs during the last decade. The aim being to adapt to new customer requirements on a global market is of vital importance for long term success. Hence Quality Management Practices (QMP) has become increasingly popular as one of the managerial tool in ensuring continuous improvement. In such a scenario there is need for SMEs, to implement QMP in order to compete with the larger firms and to sustain the fierce competition.