Impact of quality management systems on firm performance

Vision Communication and Firm Quality Performance: The Mediating Role of Employee Involvement and the Moderating Effect of Leader Support

Vision communication (VC) is an important way for leaders to express their ideas about a blueprint of the future to convince employees that their work is valuable and meaningful in total quality management. This research studies the influence of vision communication (VC) on quality performance (QP) through the mediation of total employee involvement (EI) and the moderation of leader support (LS). With the use of Smartpls 3.0, the collected data based on 2996 samples in Shanghai were used to analyze the various constructs. The results show that both VC and EI affect QP and should be influenced by LS. EI was found to partially mediate the relationship between VC and QP. The results also demonstrate that EI can positively affect improvement in QP via stronger LS and that high-level employee involvement is positively associated with quality performance when leader support is high (vs. low). This research can be inferred as one of the very limited empirical analyses that explored the mediating impact of EI on VC and QP. In the quality management (QM) field, the exploration of the moderating effect of LS on the mediation of the EI between VC and QP can be viewed to be a significant theoretical finding. The findings will be instrumental in assisting managers and administrators in understanding the significance of vision communication and leader support in quality management practice.

Exploring the indirect links between enterprise risk management and the financial performance of SMEs

This paper responds to the lack of empirical evidence on how enterprise risk management (ERM) and the financial performance of small and medium-sized enterprises (SMEs) are related. Structural equation modeling is used to explore new mediators in the relationship between ERM and SME financial performance. The results show that organizational culture (mission dimension) and strategic risk management performance are full and positive mediators between ERM and financial performance. These research results highlight the fact that the implementation of ERM in an enterprise does not by itself generate the expected effects without the existence of a mature organizational culture and the monitoring of strategic risk management performance. These findings are particularly relevant for SMEs with “pretend ERM” that lacks the strategic and operational components. ERM also helps to transform the negative effect of foreign capital in SME equity on financial performance into a positive effect.

Total quality management in Peruvian goods companies during the COVID-19 pandemic

Purpose

The aim of this research is to empirically assess the nine dimensions of the Total Quality Management (TQM) model, which have been categorized into four blocks: the top management block, the supplier block, the process management block and the customer block. The nine dimensions represent key strategic activities of company performance. A comparative analysis of companies with ISO 9001 certification and those without certification in a developing country during the COVID-19 pandemic is carried out.

Design/methodology/approach

A survey was administered to the management of 259 Peruvian goods companies (in the mining, repair and manufacturing sectors) during the COVID-19 pandemic. The survey consisted of 35 Likert-scale items, which were grouped into the following nine TQM dimensions: Top management (leadership), quality planning, quality audit and assessment, product design, suppliers' quality management, process control and improvement, education and training, quality circles and focus on customer satisfaction. Then, Cronbach's alpha, the Kolmogorov–Smirnov test, the Mann–Whitney U test and means were computed for each of the dimensions. This analysis made it possible to estimate significant differences between ISO 9001 certified and non-certified goods companies in terms of the dimensions.

Findings

The results showed that, for ISO 9001 certified companies, the averages for all of the dimensions were significantly different from those of non-certified companies, except for the education and training dimension. ISO 9001 certified companies scored higher than non-certified companies in the TQM dimensions. For both certified and non-certified companies, the leadership dimension had the highest average and the quality circles dimension had the lowest average.

Originality/value

This study addresses two main gaps highlighted in the research on quality management: the application of Quality Management Systems (QMS) in developing countries like Peru, and the impact of ISO 9001 on the performance of goods companies during the COVID-19 pandemic.

Zero Defect Manufacturing in the Food Industry: Virgin Olive Oil Production

This paper provides a zero defect manufacturing (ZDM) approach designed for the virgin olive oil (VOO) industry, with the objective of producing the best possible product using sustainable methods. A deep analysis of related work for ZDM and the current state-of-the-art technology in the VOO elaboration process is presented, along with the implications of the well-known trade-off between quality and extraction yield and the importance of having the right information on the state of the fruits and the main technological variables of the process. Currently available new technologies, such as smart devices with cloud connectivity, enable having the required amount of data and information in real-time, thus making the concept of ZDM possible. Together with the proposed ZDM approach and strategies, the basic requirements and the first steps towards the implementation of ZDM in this productive sector are identified.

Benefits on productivity indicators after quality management implementation: evidence in the dairy industry

Purpose

This study aims to address two objectives: to analyse how the benefits of quality management (QM) are perceived on specific productivity indicators of the Colombian dairy industry and to analyse the degree of QM implementation.

Design/methodology/approach

The methodology used was a multiple case study and involved four companies in the Colombian dairy industry. The study variables were 32 QM practices and 7 productivity indicators. Data collection instruments were in-depth interviews and checklists.

Findings

Findings revealed that all productivity indicators exhibit changes after QM implementation. In addition, cases approaching ISO 9001 have the highest number of practices implemented, as well as evidence of control of all productivity indicators, which allows them to perceive greater benefits.

Originality/value

This research generates novel findings that contribute to the consolidation of theory by analysing changes in specific productivity indicators of the dairy industry after the QM implementation. At the same time, it provides valuable and useful information for managers, practitioners and policymakers.

Benchmarking the practices of flexibility with maturity models and frameworks of organizational capabilities

Purpose

Organizational capabilities are crucial to achieve the objectives. A plethora of maturity models is available to guide organizational capabilities that create a perplexing situation about what stuff to improve and what to leave. Therefore, a unified maturity model addressing a wide range of capabilities is a necessity. This paper establishes that a flexibility maturity model is an unified model containing the operational, strategic and human capabilities.

Design/methodology/approach

This paper does a comparative analysis/benchmarking studies of different maturity models/frameworks widely used in the information technology (IT) sector with respect to the flexibility maturity model to establish its comprehensiveness and application in the organization to handle multiple goals.

Findings

This study confirms that the flexibility maturity model has the crucial elements of all the maturity models. If the organizations use the flexibility maturity model, they can avoid the burden of complying with multiple ones and become objective-driven rather than compliance-driven.

Research limitations/implications

The maturity models used in information technology sectors are used. This work will inspire other maturity models to adopt flexibility phenomena.

Practical implications

The comparative analysis will give confidence in application of flexibility framework. The business environment and strategic options across organizations are inherently different that the flexibility maturity model well handles.

Social implications

A choice is put to an organization to see the comparison tables produced in this paper and choose the right framework according to the prevailing business situation.

Originality/value

This is the first study that makes a conclusion based on comparative benchmarking of existing maturity models.

Relationship between ISO 9001:2015 and operational and business performance of manufacturing industries in a developing country (Indonesia)

Previous research has emphasized the need to further investigate the impact of ISO 9001 on company performance in the manufacturing sector of developing countries. Indonesia is one of those developing countries where the implementation of ISO 9001 is yet to be adequately researched. The Indonesian automotive manufacturing industry is still unable to compete with Malaysia and Thailand even though many companies have implemented ISO 9001. This study aimed to examine the relationship between ISO 9001 and operational (productivity, customer satisfaction, and product quality) and business (sales growth, profit rate, and market share) performance of Indonesian automotive component manufacturing industries. It also aimed to identify major obstacles in the effective implementation of ISO 9001. Multiple linear regression analyses about operational and business performance were employed for this purpose. The sample size comprised 50 automotive component manufacturing industries located in the Jakarta, Bogor, Tangerang, and Bekasi region of Indonesia. The study demonstrates that the implementation of the ISO 9001:2015 quality management system has a significant positive impact on the operational performance as well as the business performance. Additionally, the operational performance has a significant positive impact on the business performance. This study also reveals the major obstacles in the effective implementation of ISO 9001 in the manufacturing industry, which include a lack of qualified personnel, inadequate training, employee resistance, and lack of commitment among top-level management executives. It offers clear implications for managers who focus on elements that will enhance the effectiveness of ISO 9001 implementation by choosing the correct strategies, allocating sufficient resources, and improving their firm's performance. The novelty of this study lies in filling the existing research gap, which involves a detailed examination of the relationship between the implementation of ISO 9001 and the company's performance, particularly in manufacturing industries of developing countries.

Quality cost management in the SMEs of Poland

Purpose

The purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.

Design/methodology/approach

The primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.

Findings

The pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.

Research limitations/implications

The research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.

Practical implications

The results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.

Originality/value

The questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.

Extension of technology continuance theory (TCT) with task technology fit (TTF) in the context of Internet banking user continuance intention

Purpose

The advancement in Internet technology has played a significant role in revolutionizing the Internet banking services. Therefore, little is discussed about factors that motivate technology user to continue the use of Internet banking services. The current study investigates Internet banking user continuance behavior toward the use of Internet banking services with the integration of two-well known information system (IS) theories namely task technology fit (TTF) and technology continuance theory (TCT).

Design/methodology/approach

The research design of this study is based on positivist paradigm and followed quantitative research approach. Data were collected from 360 Internet banking users of commercial banks across Pakistan. The research model was tested with structural equation modeling (SEM).

Findings

The research model had explained 53.9% variance in Internet banking user continuance intention. Next to this, the predictive relevance of the research model was tested with Stone-Geisser's Q² values using blindfolding procedure. Results revealed that the newly developed integrated technology continuance research model has substantial power to predict Internet banking user continuance intention. Moreover, the effect size analysis revealed that factors like satisfaction and user expectation were the most important factors in determining Internet banking user continuance intention.

Practical implications

For practical implications importance performance matrix analysis (IPMA) has used to see the importance and performance of the underpinned factors. Findings indicate that managers and policy makers should focus on user satisfaction, perceived usefulness and expectation confirmation in order to enhance the Internet banking user continuance intention toward the use of Internet banking services. Some of the ways banks can do this is to develop esthetic Internet banking website with charm of novelty, relevant information and smooth flows with less complex redirects.

Originality/value

Unlike prior studies that focus on Internet banking user pre-adoption issues, the current study examines post-adoption issue of Internet banking users and investigates Internet banking user continuance intention. This study is significant as it integrates two-well known theories namely TCT and TTF in Internet banking user continuance intention and augments the IS literature by developing an integrated technology continuance model (TCM).

Integration of continuous improvement strategies with Industry 4.0: a systematic review and agenda for further research

Purpose

The purpose of this paper is to provide a review of the history, trends and needs of continuous improvement (CI) and Industry 4.0. Four strategies are reviewed, namely, Lean, Six Sigma, Kaizen and Sustainability.

Design/methodology/approach

Digitalization and CI practices contribute to a major transformation in industrial practices. There exists a need to amalgamate Industry 4.0 technologies with CI strategies to ensure significant benefits. A systematic literature review methodology has been followed to review CI strategy and Industry 4.0 papers (n = 92).

Findings

Various frameworks of Industry 4.0, their advantages and disadvantages were explored. A conceptual framework integrating CI strategies and Industry 4.0 is being presented in this paper.

Practical implications

The benefits and practical application of the developed framework has been presented.

Originality/value

The article is an attempt to review CI strategies with Industry 4.0. A conceptual framework for the integration is also being presented.

Linking ISO 9000 certification to firm performance and financial crisis: a matched sample longitudinal analysis

Purpose

This is a longitudinal study exploring the effect of ISO 9000 certification on firm's financial performance in the pre-crisis period and the 2008 financial crisis period.

Design/methodology/approach

The empirical analysis is based on a 22-year dataset with balance sheet data from 136 Greek listed firms covering the period 1992–2013. A matching technique is applied to properly estimate potential differences in the impact of ISO 9000 on firm's financial performance between the groups of certified and matched non-certified (control) firms in the entire period but, most importantly, in pre-crisis vs crisis periods, using the difference-in-differences econometric approach.

Findings

The findings indicate that certified firms exhibit significantly higher financial performance relative to the matched non-certified group in both the pre-crisis and crisis periods, which tends to persist for several years post-certification. The financial crisis has a negative and statistically significant effect on firm performance in both the certified and matched non-certified groups, which nevertheless did not differ significantly between them. Controlling for sectoral and technological differences did not harm the higher performance of certified firms relative to the matched control peers. The results remain in the same direction when the authors test the ISO 9000 effect in the sub-group of certified firms that obtained the certification at the firm-level.

Originality/value

The study is original in its sample design and hypothesis testing. The matched sample created from a sufficiently long and continuous time dataset enabled the authors to properly estimate firm performance differences of ISO 9000 between pre-crisis and crisis periods. Of additional value is the testing of sectoral/technological differences and the distinction between firm-level and plant-level certification.

An integrated fuzzy framework for analyzing barriers to the implementation of continuous improvement in manufacturing

Purpose

Delivering premium services and quality products are critical strategies for success in manufacturing. Continuous improvement (CI), as an underlying foundation for quality management, is an ongoing effort allowing manufacturing companies to see beyond the present to create a bright future. We propose a novel integrated fuzzy framework for analyzing the barriers to the implementation of CI in manufacturing companies.

Design/methodology/approach

We use the fuzzy failure mode and effect analysis (FMEA) and a fuzzy Shannon's entropy to identify and weigh the most significant barriers. We then use fuzzy multi-objective optimization based on ratio analysis (MOORA), the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS) and fuzzy simple additive weighting (SAW) methods for prioritizing and ranking the barriers with each method. Finally, we aggregate these results with Copeland's method and extract the main CI implementation barriers in manufacturing.

Findings

We show “low cooperation and integration of the team in CI activities” is the most important barrier in CI implementation. Other important barriers are “limited management support in CI activities,” “low employee involvement in CI activities,” “weak communication system in the organization,” and “lack of knowledge in the organization to implement CI projects.”

Originality/value

We initially identify the barriers to the implementation of CI through rigorous literature review and then apply a unique integrated fuzzy approach to identify the most important barriers based on the opinions of industry experts and academics.

The effectiveness of quality awards on the company's performance – the case of Iran's national quality awards

Purpose

The purpose of this study is to clarify the relationship between getting quality awards by companies and their financial performance in Iran's business.

Design/methodology/approach

In the first step, the relationship between awards scores and financial performance by canonical correlation analysis was examined. Then, binary and multinomial logistic regression was used to determine the degree of impact of each financial performance measure on getting quality awards. Finally, two forecasting functions were explored: the probability of achieving quality awards and the probability of achieving different levels of these awards.

Findings

Based on the analyzed data of 112 companies through canonical correlation analysis, there was a weak relationship between financial performance and getting quality awards. Also, by using logistic regression, no result was found to prove the impact of financial performance measures on getting Iran's national quality awards. It can be concluded that conceptually, deployment of excellence organizational models will not result in favorable outcomes, especially in the financial scope. Also, practically, excellence models have not been well deployed in Iranian companies, or these models do not fit to Iran's business environment. Organizational culture may not be consistent with quality.

Originality/value

Quality awards are given to qualified companies following the establishment of models of excellence such as the European Foundation for Quality Management (EFQM). The main novelty of this research is to clarify the relationship between getting quality awards by companies and their financial performance in Iran's business.

An evaluation of alternative business excellence models using AHP

Purpose

The purpose of this paper is to compare some major National Quality Award/Business Excellence Models (NQA/BEM) in terms of the criteria employed and their relative weights. It shows that these models vary both in terms of criteria and their weights. Whereas some of them are changing weights frequently, others are almost static. It employs the analytic hierarchy process (AHP) to allocate scores to 12 criteria identified in the model by Agrawal et al. (1998) to propose a modified quality award model similar to that. The six quality award models used in the USA, Canada, Europe, Australia, Japan and India are compared with the proposed model using AHP and their relative rankings are obtained.

Design/methodology/approach

First, a literature review is done to identify various quality award models globally, with their features being compared. Furthermore, paired comparison technique is used to rationalize the relative weights of proposed 12 criteria, and then AHP is again used to rank this proposed model with six major award models.

Findings

This paper shows that the six NQA models vary substantially on parameter weights. They do not include some relevant criteria to evaluate the organizational performance holistically. It also reveals how some models have been revising criteria weights very frequently, whereas others are static. In some models, the results get much higher weightage than enablers, and hence the performance may not be sustainable. The modified Agrawal et al. (1998) model is taken as a base model, with weights rationalized in it using the AHP. The rankings obtained using AHP reveal that proposed model scores over the other six prominent quality award models. The result also reveals that for organizational excellence, the quality of people plays a major role in the successful implementation of quality processes. Hence, it is very important to focus on improving the quality of people before expecting improvement in the quality of products and services.

Research limitations/implications

The paired comparison results are based on the researchers’ own perception and do not consider interdependence among the criteria, which is a limitation of AHP. Analytic network process can be further explored to overcome the limitation. The proposed model has not been tested in a variety of real-world situations, which can constitute a scope for further work in the direction.

Practical implications

The proposed model framework and weightages evolved using AHP can provide a universally acceptable quality award model framework. The companies can adopt it with or without modifications to address their contextual adaptation. It can possibly become a standard model framework globally. This model does not capture the measurement of the softer aspects that impact the people quality. As people play an important role in the success of the implementation of any practice, hence measurement of people quality is another important aspect that can be further studied and researched.

Originality/value

This comparative study & analysis of National Quality Award/Business Excellence Models using AHP is presented for the first time. The authors have not come across any such studies in their literature review. This paper is an original conceptualization of the application of the AHP on the various Quality Award model parameters, and it has been submitted exclusively to JAMR for publishing.

Factors affecting quality management at the Thai national institute of health

Purpose

The purpose of this paper is to confirm and examine organization-related factors that could affect quality management at the Thai national reference laboratory known as National Institute of Health.

Design/methodology/approach

The authors invited 340 laboratory staff members to complete a questionnaire that enquired about their skills, opinions, perceptions, leadership, work environment, organizational culture and organizational commitment in relation to quality management. Confirmatory factor analysis (CFA) and multiple linear regression were used to analyze the data.

Findings

In total, 65 percent of institute members responded to the questionnaire. CFA revealed that all factors were related to quality management. Three factors, leadership, organizational commitment and work environment, significantly affected quality management, but organizational culture did not.

Research limitations/implications

Other data types should be collected for an in-depth understanding, i.e. focus groups or in-depth interviews. A longitudinal study could also enhance quality management understanding to see how each variable changes over time.

Originality/value

Analyzing quality management through confirmatory factor and regression analysis showed that the four analyzed variables are statistically significant in relation to quality management at the laboratory. Managers could apply this information to revise the current policy.

Effects of Service Quality Policies in the Tourism Sector Performance: An Empirical Analysis of Spanish Hotels and Restaurants

In the last few years, it has become essential, in order for companies to ensure their survival, to approach the customer and bet on quality. This is due to the importance of tourism in many economies and the increase in supply and demand. For this reason, there are numerous studies found in literature that evaluate the extent to which quality practices impact finances and competitiveness of tourism companies. Furthermore, the usual practice in many of these studies is to classify all types of tourism businesses in the same category, even though there seem to be significant a priori differences between them. The main objects of scrutiny in this study are restaurants and hospitality. The analysis of the aggregate results of two surveys carried out among executives in Spain that employed SEM methodology demonstrates that quality practices have influence, albeit indirectly, on a firm’s performance in a positive way. However, separate analysis of subsamples show disparities between hotels and restaurants. This paper illustrates that, although both subgroups operate in the same sector, they obtain different results from implementing quality policies. Therefore, the specific features and typology of the selected tourism company should be considered.