The purpose of this article is to examine the relationship between Total Quality Management (TQM) practices and their effects on firms’ performances’ in Palestine. It also aims to discuss management commitment, employee involvement, training and education, reward and recognition on quality improvement within 57 Palestinian firms. The study employs survey data collected from Palestinian manufacturing and service firms. The results of this study revealed that management commitment, employee involvement, training, education, rewards and recognition are significantly positively associated with firms’ quality improvement practice. It was perceived that employee involvement was a dominant factor for quality improvement; it was associated with significant improvements in firms’ quality improvement.