Because of the changing competitive environment, quality might have lost some of its luster and emphasis in business. The research question we aim to address in this paper is: Does quality still pay in the new competitive environment? Using replication research, we re-examine the impact of an effective total quality management (TQM) program on a firm's operating performance in the new competitive environment. We use publicly available data for award-winning firms and adopt several control-firm-selection approaches in our event study. Based on data from more than 500 firms, we find that over a 10-year period—6 years before to 3 years after winning their first quality award—firms in our sample perform significantly better than control groups in various operating performance measures. Not only do award-winning firms have better results after receiving awards, they also have superior performance records before the award. Our results suggest that quality is still critical to achieving long-term competitive advantages, and firms who continuously improve their quality continue to reap rewards by way of sales and financial performances exceeding those of their competitors.