On adopting quality orientation as an operations philosophy to improve business performance in banking services

The impact of strategic quality orientation on innovation capabilities and sustainable business growth

Purpose

The purpose of this paper is to present a new conceptual framework for service organizations to achieve sustainable business performance through strategic quality orientation and innovation capabilities on the basis of relevant literature review and integration of various innovation and business sustainability theories and models. The study tests if the strategic quality orientation enhances innovation capabilities in terms of exploitation and explorative innovation, which, in turn, can lead to sustainable business growth. Mediating impact of innovation capabilities between strategic quality orientation and sustainable business growth relationship is also examined.

Design/methodology/approach

A conceptual framework was developed to test and establish these relationships. Results were analyzed based on 442 questionnaires collected from five different service industries of Pakistan, and the structural equation modeling technique was used to empirically test the conceptual framework.

Findings

The results indicate that strategic quality orientation directly affects innovation capabilities and sustainable business growth and also indirectly impacts sustainable business growth through its effect on innovation capabilities.

Practical implications

The study suggests service organizations can jointly implement quality and innovation using a structured approach, with strategic quality orientation as the foundation. In this way, they can leverage from their strategic quality management, supplier relationship, corporate quality culture, continual improvement and people management in order to ensure innovation and sustainability in their business growth.

Originality/value

The study integrates strategic quality orientation and innovation capabilities, and validates a new organizational framework through empirical examination which can be used by service organizations to ensure their sustainable business growth.

Supply chain and total quality management framework design for business performance-case study evidence

Purpose

– The purpose of this paper is to identify the importance of integration of supply chain management practices with total quality management (TQM) practices to augment business performance. The objective of paper is to focus on the two important dimensions, namely, supply chain and TQM of an organization with special reference to the concepts: exploration and exploitation.

Design/methodology/approach

– In total, 20 variables have been identified (independent variables) which impact business performance (dependent variable). Variables have been extracted into four categories with a combination of two orientations, i.e., exploitation and exploration, with respect to quality management and supply chain practices.

Findings

– Configurationally four different combinations concerning supply chain and TQM were identified in which an enterprise can operate. This is supported with the four different case studies.

Practical implications

– This study leads to some interesting practical implications for practicing managers as it offers a framework in which the supply chain and TQM practices can be implemented with respect to an organizational structure (mechanistic or organic structure), environmental conditions (uncertain environment and rapidly changing product life cycle) and identification of customer orientations (whether customer is price sensitive or customer makes buying decision on account of trust or relation to the product).

Originality/value

– The concept of supply chain exploitation and supply chain exploration with different orientations of quality management is not studied comprehensively before. This paper provides a background for establishing a framework of strategies for supply chain and quality practices, with respect to the exploitation and exploration scenario.