TQM, strategy, and performance: a firm‐level analysis

Modeling the significance of dynamic capability on the performance of microfinance institutions

According to strategic management theory, dynamic capability plays a significant role in enhancing organizational performance. Using a cross-sectional research design, the current study quantitatively assesses the mediating effect of dynamic capability on the relationships of total quality management, customer intellectual capital, and human resource management practice with the performance of microfinance institutions. An online survey involving 120 members of Induk Koperasi Kredit, a credit union association in West Kalimantan, Indonesia, is conducted. All the data are subjected to variance-based partial least squares structural equation modeling (PLS-SEM) analysis. The obtained results demonstrate the significant and positive influence of total quality management and human resource management practice on dynamic capability. Furthermore, dynamic capability is found to mediate the relationship between total quality management and human resource management practice on the performance of microfinance institutions. However, this study is unable to conclude that total quality management and human resource management practice have any significant impact on the performance of microfinance institutions. Nonetheless, this study demonstrates the crucial need for microfinance institutions to enhance their management activities via dynamic capability to enhance performance. This is one of the earliest studies conducted during the COVID-19 pandemic to examine the capabilities and performance of microfinance institutions in Indonesia. Notably, the performance of microfinance institutions can be further sustained by improving customers' intellectual and dynamic capabilities.

Innovative profiles of TQM in banking management. The relationship between employee training and risk mitigation

Purpose

This paper aims to investigate the relationship between employee training and bank risk to verify whether and to what extent an increase in employee training, as a soft component of total quality management (TQM), affects bank risk.

Design/methodology/approach

The research adopts a panel regression, based on a unique dataset of a sample of Italian banks over the period 2011–2018, to test whether employee training affects bank risk, measured alternatively in terms of Z-score, a proxy of bank stability and non-performing loans (NPLs)/gross loans ratio as a proxy of credit risk.

Findings

Research findings reveal that increasing employee training leads to growing bank stability. In contrast, credit risk is not affected by employee training. However, by investigating training heterogeneity, this study found that the increase in the number of managerial training hours, as a proxy for soft skills training, negatively impacts credit risk. Therefore, an increase in soft skills leads to a reduction in bank credit risk.

Research limitations/implications

This study provides empirical evidence in support of the relationship between employee training and bank risk, which seems novel in the literature. From a managerial point of view, this study highlights the need for banks to pay attention to the skills, particularly soft skills, that banks' employees must possess to effectively manage bank risk and, more specifically, the core bank risk.

Originality/value

Empirical evidence on the relationship between employee training, soft/hard skills and bank risk appears limited if not absent. Therefore, the findings provide insights for a more nuanced interpretation of variables that affect bank risk.

Entrepreneurial coaching mediating relationship between TQM soft practices and firm performance: cases of certified Tunisian companies

Purpose

This paper aims to study implicitly the mediating role of entrepreneurial coaching between TQM soft practice and firm performance.

Design/methodology/approach

The data was gathered from 160 Tunisian-certified companies. The direct and indirect effect between TQM soft practice, entrepreneurial coaching and firm performance are shown using the structural equation modeling. It was performed using SPSS 20 software and AMOS 20 software.

Findings

First, TQM practices have a positive effect on entrepreneurial coaching. Second, entrepreneurial coaching has a positive effect on firm performance. Third, TQM soft practices have a positive effect on firm performance. So, entrepreneurial coaching may implicitly mediate the relationship between TQM soft practice and firm performance.

Research limitations/implications

This paper helps the practitioner to understand how entrepreneurial coaching ensure TQM soft practice implementation and how entrepreneurial coaching affects firm performance.

Originality/value

To the best of the author’s knowledge, this paper presents an innovative approach since it is among the first research study that treats the relationship between entrepreneurial support and TQM soft practice implementation and especially the relationship between entrepreneurial coaching and the success of the TQM soft practices implementation.

What would QMS implementation really bring to a company?‐ Theoretical review on benefits and disadvantages researched in practice

Purpose

This study aims to provide information on particular combination of benefits or disadvantages with exact timing of their appearance in the company after its first certification, along with the information on the value range each benefit and disadvantage would take, as well as on the duration period of expected values.

Design/methodology/approach

Survey was conducted from October 2015 to January 2019 in 306 certified companies with respondent rate of 58.82%. A questionnaire, structured using literature review to identify all possible benefits and disadvantages of QMS, was used to determine the time of appearance, value range and duration of each identified benefit or disadvantage. Results were used to define indicators for fully applied QMS in each age of its maturity, then the indicators were verified using the records of two ISO certified companies.

Findings

There is a difference in the set of benefits and disadvantages in companies with fully implemented QMS and those that are using QMS only to maintain the certificate. In each age of QMS application a specific set of benefits and disadvantages can be expected as well as the volume range of each of them. These timely sets of benefits and disadvantages can be used as indicators to distinguish well-implemented QMS from those partially implemented.

Research limitations/implications

The sample consists of companies from Balkan area, therefore economy, politics and culture could have influenced results, predominantly regarding the value ranges of some benefits and disadvantages.

Practical implications

Companies which already have implemented or are about to implement QMS may use results of the research to plan its effects in years ahead, concerning costs and profit dynamics, as well as to prepare themselves for upcoming probable issues. Auditors can use results in addition to certification criteria to determine the level of QMS implementation and to forecast whether audited company would keep the certificate in the future.

Social implications

Supply chain management could use research findings in selection of chain members to support and speed up third party audits since the benefits and disadvantages of fully implemented QMS are known for each QMS age. This would further imply better structure of supply chains, which would consequently lead to lower production costs, higher quality and competitive prices at the market, which has beneficial implications on the whole society.

Originality/value

For each age of QMS maturity, starting from the first year of certification, expected combination of benefits and disadvantages along with its expected value range and duration are defined. A set of indicators with their expected values.

Assessment of quality performance in the Egyptian manufacturing industry

Purpose

The purpose of this study was to examine the quality performance of the Egyptian manufacturing industry based on Flynn's quality management practices framework.

Design/methodology/approach

A literature-based questionnaire was developed to collect the research data. The sample studied included 193 professionals from different manufacturing firms in Egypt. The research model utilized seven first-order constructs to measure infrastructure and core quality practices and the model was analyzed by structural equation modeling.

Findings

The results of the study showed that infrastructure practices had a positive effect on core quality practices, which in turn, significantly influenced quality performance. The findings confirmed that Egyptian manufacturing firms have a good foundation of quality management practices enabling them to improve quality performance.

Practical implications

This study provides a foundation for Egyptian manufacturing firms to develop a practical plan for implementing total quality management (TQM). In addition, the results of this study will help managers and policy makers develop a thorough understanding of the current status of TQM initiatives, enablers and barriers in Egypt.

Originality/value

The study represents one of the few attempts to examine quality practices and quality performance in the manufacturing sector in Egypt. To the best of the author's knowledge, this is the first study to examine these parameters in this context in Egypt.

Innovation mediating relationship between TQM and performance: cases of industrial certified companies

Purpose

The purpose of this research is to analyze the reciprocal relation between total quality management (TQM) and innovation (product innovation and process innovation) and their impact on operational and financial performance.

Design/methodology/approach

The data were obtained from a survey of 205 manufacturing companies. Structural equation modeling (SEM) was performed to evaluate the research model.

Findings

The results reveal that there is a reciprocal relationship between TQM and innovation. Moreover, the findings indicate a significant positive effect of product innovation and process innovation on operational performance and insignificant direct impact of TQM on operational performance. However, this effect is significant when it is mediated through product innovation and process innovation.

Research limitations/implications

This paper helps practitioners to understand how TQM practices support both product and process innovation and the role of the latter in promoting the implementation of TQM practices and ensuring operational performance.

Originality/value

This study presents an innovative approach since it is among the first research studies that provide empirical evidence to a reciprocal association between TQM and innovation. Additionally, this paper examines the dimensions studied in different aspects. It considered financial performance and operational performance, and with respect to innovation, this dimension was analyzed through two different perspectives, namely product innovation and process innovation. This study is also among the first and few research studies that have studied the mediating effect of innovation.

Aligning operational practices to competitive strategies to enhance the performance of Indian manufacturing firms

Purpose

The main purpose of this study is to understand how collective operational practices are adapted or stimulated by a firm's competitive strategy.

Design/methodology/approach

This study employed a data set drawn from 124 plant managers and directors of Indian manufacturing firms. Multiple regression was used to examine the impact of operational practices of lean, total quality management (TQM) and supply chain management (SCM) within competitive clusters of cost leadership, differentiation and focus strategy.

Findings

Results of the study show that the pattern of impact of operational practices on firm's performance varies according to type of the competitive strategy employed. All the three competitive strategy clusters have reported that TQM is the most important trigger for Indian manufacturing firms with relative effect of TQM practices on firm's performance being higher than that of lean and SCM practices.

Research limitations/implications

Cross-sectional data from Indian manufacturing firms were used, and it would be interesting to test the analytical framework of the study for more sectors and countries. Future studies can take a longitudinal research approach to strengthen the findings of the study.

Practical implications

The findings explain how operational practices are aligned with competitive strategies for practitioners so that they can assign limited resources to build diverse operational capabilities based on their strategic choices.

Originality/value

Although very few classical studies are reported in various contexts involving competitive strategy, operational practices and firm's performance, no existing study focuses on how these three domains are linked together in the context of Indian manufacturing sector.

Effect of entrepreneurial orientation, market orientation and total quality management on performance

Purpose

This study aims to examine the joint effect of entrepreneurial orientation (EO), market orientation (MO), total quality management (TQM) and organisational performance in the Kingdom of Saudi Arabia’s (KSA's) small and medium enterprise (SME) sector.

Design/methodology/approach

This paper used a quantitative research design. A total of 393 questionnaires were distributed to and collected from owners/managers of SMEs in KSA to acquire requisite data for examining the hypothesised model of the study. Partial least squares structural equation modelling was used to analyse the research data.

Findings

The results indicate that EO, MO and TQM are positively and significantly related to the organisational performance of SMEs. In addition, the findings reveal that TQM has contributed the most to the enhancement of organisational development, which is followed by EO and finally, MO.

Practical implications

Developing economies consider SMEs as an approach to generate new jobs and enhance economic growth. The results provide owners/managers, practitioners and academicians with an enhanced understanding of the relationship and effects of EO, MO and TQM on organisational performance, particularly in the SME sector. Thus, owners/managers are guided to develop improved and further effective decisions for the implementation of TQM practices with strong EO and MO. Consequently, firms realise superior performance and continuously compete within their market.

Originality/value

From the perspective of developing countries, this study contributes to the existing literature by providing empirical evidence regarding the effects of EO, MO, TQM and SMEs' performance. This study is the first to empirically examine the SME sector within the KSA's economy regarding the new orientation among decision makers in terms of increasing the significance of non-oil activities. This study also confirms the usability of resource-based view theory and strategic orientations variables in the KSA SMEs.

The relationship between TQM practices and organisational innovation outcomes

Purpose

The purpose of this paper is to study the role of slack (both moderating and mediating) to stimulate the relationship between total quality management (TQM) factors and innovation outcomes relative to gaining competitive industry advantages.

Design/methodology/approach

The research methodology includes a multi-item scale questionnaire completed in three waves between 2016 and 2017, and later analysed in 2018. A final response rate of 29.5 per cent was obtained, representing 190 organisations from both manufacturing and service industries in the United Arab Emirates (UAE). Partial least squares structural equation modelling was used to test the multi-collinearity, moderation and mediation analysis.

Findings

Analysis confirmed that factors such as continuous improvement (CI), human resource management (HRM) and information measurement (IM) were positively linked to innovation. However, when slack was introduced as a moderator, innovation outcomes were stimulated through HRM and IM. The results indicate that slack acts as a full mediator for management leadership but only partially mediates supplier quality, IM, CI, HRM and process management.

Research limitations/implications

In terms of geographical coverage, research was limited to the UAE. Organisations striving for excellence through innovation may benefit from the outcomes, as they help in understanding the relationship between TQM and innovation moderated and/or mediated by slack. This could also lead businesses to develop new strategies that harmonise TQM policies with “rationale” slack policies, thus, promoting innovation.

Originality/value

This study is the first to examine the use of slack to stimulate the relationship between TQM factors and innovation outcomes. Using slack as a mediator can help in understanding when TQM might influence innovation, while slack as a moderator could invert the relationship between the two.

An empirical study to investigate the effects of critical factors on TQM implementation in the garment industry in Bangladesh

Purpose

The purpose of this paper is to investigate the factors that enable total quality management (TQM) implementation in the readymade garment (RMG) sector of Bangladesh. More specifically, the present study is a supplement of the previous call from research to investigate the TQM-enabling factors from a broader aspect of organizational change.

Design/methodology/approach

This study was conducted through an online survey, followed by phone calls. Data were collected using a questionnaire survey with 256 respondents of the Bangladeshi RMG sector. The TQM-enabling factors were divided into five distinct groups, based on strategic or overall changes required within an organization for TQM implementation. A theoretical research model was created to investigate the contingency of various TQM-enabling factors. Structural equation modeling (SEM) was applied to confirm the factor that enabled TQM implementation in the RMG sector of Bangladesh.

Findings

The main finding of this study shows that structural, strategic, contextual and human resource-enabling factors are significant to TQM implementation in the Bangladeshi RMG sector.

Research limitations/implications

This study has been completed in single time frame. Therefore, consideration of the time factor is completely ignored in this research. Furthermore, understanding of TQM-enabling factors in this research relied on quantitative findings only. Also, this study was limited to one industry and one geographic region. However, this study could determine whether data triangulation will provide a good perception on enabling factors and the methodology can be extended to other industries and regions.

Practical implications

This study provides a research methodology for other manufacturing industries that are planning to implement TQM in their organization. This research will contribute to the existing literature by examining the contingency of various TQM-enabling factors in the context of the Bangladeshi RMG sector, and it, therefore, provides direction to increase the success rate of TQM implementation. Furthermore, the research methodology can be used in other studies for variation of contextual variables such as size of the industry, developed or underdeveloped country and manufacturing or service industry.

Originality/value

The methodology used in this study can lead the way for other industries in the RMG sector that implements TQM in their organization. Also, this research further contributes to the existing literature by investigating the contingency of various TQM enabling factors in the context of the Bangladeshi RMG sector and developing associated strategies to raise success rate of TQM implementation.

Does CSR matter in the pharmaceutical distribution industry?

Purpose

Given the important role of corporate social responsibility (CSR) in today’s business world, this study aims to investigate how it affects the performance of pharmaceutical distribution companies by using the balanced scorecard (BSC).

Design/methodology/approach

Drawing upon the existing literature, a questionnaire consisting of 32 questions was prepared and distributed to examine ongoing practices and to probe uninvestigated domains related to CSR. To confirm the efficiency of the research model and the accuracy of the measurement model – which was utilized to examine the correlation between different variables – variable scores were acquired from a national study and were entered into a structural equation model.

Findings

Analysis of 933 completed questionnaires revealed the existence of large correlation between subsets of the considered dimensions. The questionnaire contained five underlying dimensions: employee relations, corporate governance, societal concern, economic and financial concern and environmental concerns. All CSR variables can be condensed into these five dimensions, which are the main features of the CSR model proposed for the Iranian pharmaceutical distribution companies. Not only did the results support the research model but also indicated that CSR’s impact on BSC and its four components – financial perspective, customer perspective, internal process perspective and learning and growth perspective – was both positive and significant.

Practical implications

This paper identifies five dimensions through which CSR practices can effect positive changes in an organization’s performance in relation to the four BSC perspectives. Thus, in focusing on these dimensions, a company increases its likelihood of enhancing its performance and, consequently, realizing significant gains. In addition, as managers play the most significant role in CSR implementation, they should support all associated practices to achieve their strategic goals.

Originality/value

Pharmaceutical distribution companies tend to apply CSR – which is commonly described as informal and voluntary humanitarian activities – to different domains, including the workplace, marketplace, community and environment. This study contributes to the existing literature by shedding light on various domains in which CSR practices are applied to enhance organizational success in pharmaceutical distribution companies.

Testing the readiness of an organisational culture profile to a TQM implementation

Purpose

The purpose of this paper is to apply an existing theoretical model of organisational culture contextualised for total quality management (TQM) as a means of assessing the readiness for implementing TQM in the workplace. The “Amalgamated Model” is a hybrid that encapsulates organisational culture traits and their relative contribution as indictors of effective TQM implementation.

Design/methodology/approach

A questionnaire that would test the theoretical model was devised and administered to a sample population in a production facility located in Central Europe, Organisation X.

Findings

A profile of the organisation was derived which revealed the strengths and weaknesses of the organisation in relation to the cultural traits of the theoretical model.

Research limitations/implications

The research population comprised management/supervisory staff only and thus provides a partial view of Organisation X.

Practical implications

For practitioners, particularly those who specialise in quality management, the practical implications of this research are twofold: first, it provides insights into aspects of organisational culture and TQM implementation; and second, it demonstrates how a theoretical framework may be applied in the workplace to assess readiness for TQM implementation.

Originality/value

This research contributes to the subject area body of knowledge by applying a recent theoretical model to assess readiness for implementing TQM.

The key factors of total quality management in the service sector: a cross-cultural study

Purpose

Literature refers to the key factors of total quality management (TQM) based on studies carried out in individual countries. However, few studies focus on studying the TQM factors in service companies based on multinational data. The purpose of this paper is to empirically identify the key TQM factors and their impact on internal and external customer performance measures across different countries.

Design/methodology/approach

The research questions regarding the TQM factors and their effects were examined using a sample of service organisations from three countries (131 from Greece, 70 from Mexico and 151 from Spain). TQM factors and their impact on employee and customer satisfaction were analysed separately for each country. Exploratory factor analyses, coupled with multiple linear regression analyses, were conducted.

Findings

The key TQM factors identified are common among the three participating countries and can be summarised as follows: quality practices of top management, process management, employee quality management, customer focus, and employee knowledge and education. The adoption level of these five key factors of TQM varies across service organisations in different countries. The results also confirmed that some of the TQM elements are antecedents of customer- and employee-focused performance.

Practical implications

Multinational service organisations may use such an instrument to evaluate TQM implementation among worldwide operations and then benchmark their performance. In addition, an understanding of similarities and differences among countries would help managers around the world to address difficulties of TQM implementation related to the country culture.

Originality/value

Previous studies have compared key TQM factors across different countries in manufacturing, but overall, there has been a little attempt in the literature to analyse the adoption of TQM factors among service firms, as well the relationships between quality improvement and performance across different geographical regions.

The moderating effect of structural barriers on TQM-performance relationship in Egyptian service organizations

Purpose

This paper aims to empirically investigate how structural barriers affect the relationship between total quality management (TQM) practices implementation and organizational performance in service industries.

Design/methodology/approach

This research hypothesized the moderation effect of structural barriers on the relationship between TQM practices implementation and organizational performance. A questionnaire was adopted to collect data form 153 Egyptian service companies. Moderated regression analysis was used to test the study hypothesis.

Findings

The empirical analysis suggests that structural barriers partially moderate the relationship between TQM practices implementation and organizational performance. The analysis reveals that the effect of Quality Improvement, Process Improvement, External and Internal Relations and Employee Development – being as TQM dimensions – on performance is moderated by structural barriers. While the results provided insufficient evidence on the moderating effect of structural barriers on the relationship between both Performance Management – being as a TQM dimension – and performance.

Research limitations/implications

This research presents a new perspective for researches to understand the TQM–Performance relationship in the light of the contingency theory. However, the adopted sampling technique and the small sample size might limit the generalizability of the research findings.

Practical implications

This study provides useful insights for service organizations about the necessity of developing suitable structural platform for supporting their TQM efforts to boost their performance which, in turn, improves their competitiveness.

Originality/value

This research proposed and empirically validated how structural barriers play a significant role as moderators to the relationship between TQM implementation and organizational performance within service organizations context.

Determinants of Firm’s Export Performance in China’s Automobile Industry

The automobile industry has significantly contributed towards China’s economy. After producing approximately 24.5 million vehicles in 2015, China’s automobile industry has achieved its greatest height by emerging worldwide as the top automobile producer. However, China’s automobile industry could not sustain this achievement and it witnessed a sudden growth rate decrease in 2016–2017, reflecting their poor export performance. To address this problem, the prime objective of this research is to explore the roles of total quality management (TQM), entrepreneurial orientation (EO), export market orientation (EMO), brand orientation (BO) and cleaner production (CP) in firm export performance (FEP). For this reason, a quantitative research approach with cross-sectional research design was adopted by gathering the data from 347 respondents working as export managers at Chinese automobile companies via simple random technique. Partial least square structural equation modeling (PLS-SEM) through software smartPLS-3.2.7 employed to analyze data. Results revealed that the TQM, EO, EMO, BO, and CP has a significant association with FEP. Additionally, findings confirmed CP as a moderating variable that contributes positively to FEP. The research has eminently contributed to the export performance of the automobile industry, specifically in China. It is very beneficial to practitioners in the Chinese automobile industry as it will assist them in regaining and exceeding their record export performance while also contributes to resource-based-view theory.

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.

Impact of quality management systems on firm performance

Purpose

Within the operations management literature, quality management (QM) has been one of the most popular research areas over the last few decades. The impact of QM systems on firm performance has been the subject of constant interest and challenge among researchers. Last such review was done in 2002 based on QM-related articles published between 1994 and 1999 and these were primarily on Total Quality Management (TQM). In the last 18 years, a large number of empirical studies have been attempted to investigate QM system-performance relationships in different contexts, covering not only TQM but also other QM systems such as ISO 9001, Total Productive Maintenance (TPM), Lean Manufacturing, Theory of Constraints (TOC), and Six Sigma Continuous Improvement projects. The paper aims to discuss these issues.

Design/methodology/approach

Based on an extensive review of 263 papers published in 17 reputed journals during the period 2000 to 2017, this paper shows the reflections of QM systems with respect to study of different QM systems, type of research designs being used, performance categories and metrics being used, and application of tools/techniques.

Findings

The literature review has revealed several gaps in research in the area of QM and calls for research on: empirical longitudinal case studies; implementation of multiple QM systems; identification of leading indicators of firm’s performance; standardization of performance measures; safety, environment and health-related performance measures; the differences in the QM systems on firm’s performance for manufacturing vs service organizations; application of QM systems in developing countries including Asian countries; and impact of ISO 9001 QM system on firm’s performance.

Originality/value

The literature reviews in the past had considered only the TQM-related articles published in reputed journals and did not cover other QM systems such as TPM, TOC, Toyota Production System, Six Sigma, ISO 9001 QMS, etc., which have also been widely used in many organizations, more so in the last 15 years.

Perceptions of fine dining restaurants in Pakistan

Purpose

The purpose of this paper is to explore the relationship between restaurant key attributes, customer satisfaction and behavioral intentions. The mediating role of customer satisfaction is assessed between restaurants’ key attributes of service quality and behavioral intentions.

Design/methodology/approach

Data were collected from a sample of 296 customers dining in the fine dining restaurants of Pakistan through a self-administered questionnaire. The data were then analyzed through regression analysis and gap analysis. Model fitness was checked in SPSS AMOS through CFA.

Findings

The findings suggest that the key restaurant attributes have a significant positive effect on behavioral intentions. Customer satisfaction partially mediates the relationship between key restaurant attributes and behavioral intentions. The findings also suggest that there is a significant gap between the perceptions of customers regarding the importance and performance of key restaurant attributes.

Practical implications

The result indicates that food taste and environmental cleanliness are the cornerstones of fine dining restaurants’ success in Pakistan and are among the strongest predictor of customer satisfaction and behavioral intentions; while improvement efforts should be made in four key areas, i.e., healthy food option, food freshness, food safety and fair price.

Originality/value

No comparative study has been directed in fine dining restaurants of Pakistan with respect to the key restaurants attributes, i.e., food quality attributes, service quality attributes, atmospheric quality attributes, and other attributes which have been analyzed in the current study. This research was conducted to investigate the perceptions of customers toward the fine dining restaurants of Pakistan to measure the key restaurants’ attributes that influence customers’ satisfaction and their post-dining behavioral intentions. This study will facilitate restaurants’ managers to understand the stronger and as well as the weaker aspects of service quality and permit them to investigate the factors which contribute toward customers’ satisfaction and their post-dining behavioral intentions in order to build and maintain long-term relationship between restaurants and customers.

A structural equation model for evaluating the relationship between total quality management and employees’ productivity

Purpose

The purpose of this paper is to analyze the influences of TQM implementation on employees’ productivity in crumb rubber industry (case study conducted in the XYZ firm), and analyze the predominant factors affecting employees’ productivity in order to establish the success of TQM implementation.

Design/methodology/approach

Data used in the research was primary data obtained from interview and questionnaire, and secondary data obtained from the study of literatures, internet, and company’s documents. The number of respondents in this research was 191. The analysis was done through structural equation modeling (SEM) using the smart partial least square software.

Findings

The findings of this study showed that TQM implementation had positive influences on employees’ productivity in XYZ. Tool is the most predominant factor in order to achieve a successful TQM implementation in XYZ. Therefore, the XYZ company will need to work on improving the development and management of the tool which has been available to sustain the effectiveness of TQM practices.

Research limitations/implications

Using a large sample size in the SEM method could improve the results. The implications of this study can be demonstrated through how top managers in this rubber company can improve their employees’ productivity through total quality management practices.

Practical implications

This research is useful for manufacturing companies in Indonesia, especially in the crumb rubber industry.

Originality/value

This research used the variable based on the empirical research. TQM was measured using six indicators: human resources, standard, tools, organization, internal audit, and training and education. On the other hand, the work productivity of employees is measured by four indicators: work willingness, work ability, work environment, and work relations.

Effects of total quality management in local authorities

Purpose

The purpose of this study is to determine the main total quality management (TQM) factors adopted and the respective results achieved by local authorities – municipalities. Determining the degree to which TQM influences the respective results is also an aim of the present study.

Design/methodology/approach

A research study was designed to be carried out in Greek local authorities – municipalities, 125 of which were approached through interviews with chief executive officers (CEOs) based on a structured questionnaire. The TQM practices and results identified in the literature were used as measured variables of the questionnaire. Descriptive statistics and linear regression analyses were applied for the purpose of the study.

Findings

The TQM philosophy is not highly adopted by the Greek local authorities participating in the present study. Moreover, the Greek local authorities do not seem to derive significant TQM benefits. Finally, adopting TQM strongly and positively influences, first, operational and quality performance of the local authorities; second, citizen satisfaction and society results; and third, employee satisfaction.

Research limitations/implications

Subjective data were collected from the CEOs of a small sample of local authorities operating in a European Union country, under circumstances of financial crisis. Based on these limitations, future research studies are recommended.

Practical implications

Areas for improvement are identified for a local authority to develop a robust TQM model, approach business excellence and derive significant benefits.

Originality/value

This is the first research study in the field of TQM to be conducted at city-level administration in Greece.

Direct effects of quality management on competitive advantage

Purpose

The purpose of this paper is to examine direct effects of quality management on competitive advantage within the context of the resource-based view of a firm.

Design/methodology/approach

Survey data have been obtained from 288 general managers of luxury hotels in Egypt. The authors have used six dimensions and 22 indicators of quality management, two indicators of competitive advantage that manifest the hotel’s above average financial performance relative to competitors within the study sample, and a multi-group analysis in structural equation modeling (SEM).

Findings

The results indicate that quality management may be a source of competitive advantage. Top management leadership and supplier management differentiate hotels with above average financial performance from its competitors. The role of customer focus and employee management in generating competitive advantage is questionable while process management and quality data and reporting may not contribute to achieving competitive advantage.

Research limitations/implications

Only direct effects of quality management on competitive advantage are examined within the context of a luxury hotel industry in Egypt. Similar studies within other contexts and models that study indirect effects of quality management on competitive advantage with factors that might moderate these effects are needed. Future studies could compare effects of quality management on competitive advantage with effects of quality management on other business outcomes.

Practical implications

The results may inform management decision making concerning the development of capabilities that may generate competitive advantage.

Social implications

The current study contributes in providing further evidence that may contribute to enhancing the understanding and knowledge of the relationship between quality management and competitive advantage.

Originality/value

This study contributes to the debate on strategic value of quality management and resource-based sources of competitive advantage. Methodologically, this study shows an alternative approach to measuring competitive advantage and indicates that applying a multi-group analysis in SEM may contribute to producing original results.

TQM and market orientation in care home services

Purpose

The purpose of this paper is to operationalize the concepts of total quality management (TQM) and market orientation (MO) and to analyze the relationship between them in a major economic sector of activity, namely, the social services sector.

Design/methodology/approach

The paper analyzes the aforementioned relationships by means of a quantitative study carried out with information from managers of 137 Spanish organizations in the field of social service provision and, more specifically, in nursing homes for the elderly. Structural equation models were used to contrast the relationships.

Findings

Evidence is provided for the multi-dimensional structure of TQM and MO. The results confirm that TQM contributes to a greater degree of MO in the organizations analyzed, since a significant positive relationship between a set of components of the first concept (namely, processes, leadership and people) and the second is found.

Practical implications

Managers need to take into account the fact that the application of a management system in nursing homes that is based on TQM dimensions favors the development of an MO culture. The staff are the key factor in orientating the residential home toward the market.

Originality/value

The research covers a gap in the literature since these relationships have not been studied empirically in depth in service sectors such as social services and nursing homes, despite great and growing economic importance of this sector.

An approach to TQM evaluation in pharma business

Purpose

– The purpose of this paper is to explore the good practice (GxP) and standardised management system integration within total quality management (TQM) paradigm in pharmaceutical sector in Serbia. Also, the impact of all interested parties on quality management has been assessed.

Design/methodology/approach

– The cross-sectional study was performed, including different stakeholders within the pharmaceutical sector in Serbia: manufacturers, distributors, big pharma representative offices, as well as national regulatory authority. A survey instrument was developed, consisted of 16 questions, which were organised into four groups: questions in relation to implementation of ISO 9001, implementation of good distribution practice/good manufacturing practice, integration of management systems, and impact on TQM and business excellence. Total number of participants was 121.

Findings

– Standardised management systems (ISO 9001, ISO 14001, OHSAS 18001) support companies to improve business environment and management sustainability, but this survey indicated that it was ranked at the lower level then GxP, for pharmaceutical sector in Serbia. Although pharmaceutical companies has faced many challenges in recent years, the survey revealed high level of confidence in quality management systems, as well as the necessity of various management systems integration.

Originality/value

– The perception of TQM by the experts in pharmaceutical companies and regulatory authority is wider than the common TQM definition. From pharmaceutical point of view, TQM is a holistic approach to long-term success of organisation, oriented to all interested parties, with focus on a public health. Risk-based approach in new revision of both ISO and GxP will facilitate integration process towards TQM and business excellence.

Investigating the readiness of people in manufacturing SMEs to embark on Lean Six Sigma projects

Purpose

– The purpose of this paper is to focus on three fundamental human-related behaviour factors associated with Lean Six Sigma (LSS) projects in German manufacturing small-and medium-sized enterprises (SMEs) on the readiness of people (managers and their staff) to commence LSS projects. These are core personal competence, strategic vision of the people and the organisational culture of the specific organisation.

Design/methodology/approach

– Based on a thorough review of the academic literature a set of hypotheses were constructed to examine the level of association between people’s competence, vision and culture with LSS readiness within SMEs. This was done using correlation and regression analysis. Data collection were carried out in seven different German manufacturing SMEs involved in aerospace supply and agro-food manufacturing using a survey instrument.

Findings

– It was found that there is a strong positive association between the core competence of people and organisational culture with readiness for commencing LSS in the manufacturing SMEs studied. The core values of people, education level and the vision of making continuous quality improvement were identified as key variables in promoting LSS readiness in these manufacturing SMEs. This study indicates that these “softer” variables can be essential to successful LSS implementation and need to be explored further before undertaking the process.

Practical implications

– From the perspective of the implementers of LSS the results of this research could be of interest to different manufacturing SMEs intending to embark upon an LSS journey as it highlights the significance of human-related behavioural factors in the process. SME organisations may consider carrying out development or training with their managers and employees around personal and organisational values, addressing core competence and strengthening organisational culture in order to facilitate LSS readiness and enhance the prospect of its success.

Originality/value

– It would appear that this LSS research has not been carried out within the German manufacturing SME context before and although discrete in nature has surfaced the “softer” variables of core competence of staff and organisational culture as important readiness issues to address when undertaking LSS. This integrated approach of human behavioural factors, organisational culture, LSS and manufacturing SMEs demonstrates the originality of the research.

The impact of total quality management on service company performance: evidence from Spain

Purpose

– The purpose of the paper is to explore the impact of total quality management (TQM) factors on performance dimensions of service companies.

Design/methodology/approach

– A research project was designed in the Spanish services sector. Companies that had already participated in activities with regard to business excellence were randomly selected and approached through a structured questionnaire, yielding a sample of 151 responding companies. By analyzing TQM implementation and company performance through the exploratory factor analysis, specific TQM factors and performance dimensions are extracted. The TQM factors that significantly influence the performance dimensions are determined through multiple linear regression analyses.

Findings

– According to the findings, the factors describing TQM implementation in service companies concern quality practices of top management, employee quality management, process management, employee knowledge and education and customer focus. Similarly, the performance dimensions revealed concern financial performance, operational performance, customer satisfaction and product/service quality performance. The TQM factors concerning customers, employees and top management significantly affect the performance dimensions.

Research limitations/implications

– The subjective data were collected from quality managers of a small-sized sample of companies operating in a European Union country and belonging to different services sub-sectors. Based on these limitations, future research studies are recommended.

Practical implications

– By focussing on specific TQM factors, a service company can improve its performance dimensions. In doing so, it can lay the foundations not only to survive but to be competitive in the current global scenario that is characterized by an economic downturn.

Originality/value

– This paper describes a reliable TQM model that can be implemented in the services sector and a means by which a service company can improve its performance.

After 20 years, what has remained of TQM?

Purpose

– Many Brazilian organizations have adopted total quality management (TQM). However, this model has lost prominence in academic and business environments. The purpose of this paper is to determine which aspects of TQM have endured over 20 years.

Design/methodology/approach

– With descriptive and exploratory objectives, this study used case studies of four companies that have adopted TQM, using temporal and comparative approaches in Brazil. The analysis explores the transcendence of disseminated aspects of TQM.

Findings

– The results revealed 19 percent disuse of TQM practices, 28 percent disuse of TQM tools and 57 percent disuse of TQM methodologies. However, the principles of TQM showed an average use of 96 percent, i.e. the predominant management philosophy remains part of the organizational environment of the companies. Although many practices, tools and methodologies are not described or named in the same way, their essence remains preserved and other practices, tools and methodologies have been incorporated into the automated systems of the companies.

Research limitations/implications

– Simple statistical tools are used as we use an exploratory and qualitative approach (with just four samples), making generalizations impossible. For future research the authors suggest a more quantitative approach using more complex statistical tools.

Originality/value

– The originality is demonstrated by the investigation of the cases of disuse, which contradicts most studies that analyze success stories. This paper aims to contribute to the understanding of how certain aspects of the models or “fads” survive or disappear over time.

The impact of organizational citizenship behavior on enterprise resource planning success

Purpose

– Although the research on organizational citizenship behaviors (OCBs) has increased dramatically in diverse fields during the past decade, little is known about the OCBs in the information systems area. The purpose of this study was to explore whether total quality management (TQM) mediates between OCB and enterprise resource planning (ERP) system success.

Design/methodology/approach

– Data were collected with a questionnaire from subordinates of leaders in steel melting industry in Iran and were used to test the model introduced.

Findings

– The authors discovered the relationship between OCB and ERP success and the mediating role of TQM in this model.

Research limitations/implications

– Based on the findings of this study, managers who try for the success of ERP systems can revise their assessment systems through TQM to identify and reward employees who have positive impact in the field of OCB.

Originality/value

– Limited knowledge is available on the mediating role of TQM between OCB and ERP success in the managing field. The authors prepare a model and test this model in that company.