This study investigates the impact of quality management practices on performance and the extent to which industry rivalry and entry barriers in Queensland businesses moderate the relationship between the implementation of quality management practices and quality management performance. The results show that firms with high levels of executive commitment to quality management tend to improve their competitive position, view quality as positive for the organisation and improve overall performance, The findings suggest that the higher the degree of quality management implementation, the less likely that firms are encountering entry barriers (in terms of economies of scale) or rivalry problems arising from lagging behind in innovation, research and development. It was also found that firms were more likely to experience higher levels of organisational performance as a result of (1) a higher level of entry barriers due to their relative protection against new competitors, and (2) a higher level of innovation, research and development, due to the pressure of maintaining a competitive edge.