The synergistic impact of ISO 9000 and TQM on operational performance and competitiveness

An investigation of mediating factors for export–import business performance excellence: a systems perspective framework for Thailand

Purpose

The Baldrige criteria for assessing business performance excellence (BCPE) suggests a relationship among seven self-assessment categories. The purpose of this paper is to take an in-depth look at the BCPE by testing the causal relationship among categories grouped into four basic dimensions – driver triad, work core, outcomes, and brain centre. Identifying meaningful interrelationships for leaders helps them transform their organisations to achieve performance excellence.

Design/methodology/approach

A systems perspective supports system mapping for understanding meaningful interrelationships among dimensions and mediating factors affecting business performance excellence. A 35-item questionnaire designed to measure seven categories of the BCPE (version 2022–2023) was administered to export and import (EXIM) businesses across Thailand. Valid responses (n = 290) were analysed through SPSS and AMOS via structural equation modelling (SEM) to test the hypotheses and explore the influencing factors.

Findings

A strong systems perspective focus is essential for high organisational performance. The result reveals that all seven BCPE categories are significantly linked. In addition, mediation analysis (taking selected mediators) proved hypothesised cause-and-effect relationship as significant. The results demonstrate that the brain centre plays a crucial role in driving business success promulgating its influence within the model.

Research limitations/implications

This study provides the necessary backgrounding in systems perspectives confirming that the BCPE premises on a set of four basic dimensions: driver triad (leadership, strategy, and customers category), work core (workforce and operations category), brain centre (measurement, analysis, and knowledge management category), and outcomes (results category). These four dimensions define the essentials of an integrated management system. Further, the study shows that measurement, analysis, and knowledge management directly influenced customer focus, the highest coefficient path among the criterion in the Baldrige framework. This is the critical driver in predicting performance outcomes via meaningful feedback.

Practical implications

From a managerial point of view, the structured system management framework proposed provides a specific guide for the alignment in quality management, which can change its practice in business management and award assessment. The results evidence a significant relationship among driver triad, work core, brain centre, and outcomes to propose a form of system management. The findings help award examiners or business practitioners provide system mapping for evaluation – i.e. how well organisations meet their goals and how best to prepare feedback reports to applicants that paint meaningful pictures.

Originality/value

This study promotes a systems perspective when approaching business performance excellence, whereas other studies provide evidence to individual relationships. Moreover, the examined interrelationship among dimensions – driver triad, work core, outcomes, and brain centre – provide novel system mapping to guide managers, practitioners, or award examiners in evaluating quality management practice.

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.