The impact of soft TQM on financial performance

Modelling the added value of corporate real estate on organizational performance

Purpose

This study aims to establish the statistical relationships between corporate real estate added value indicators of cost reduction, increasing productivity, risk reduction and flexibility and organizational financial and non-financial performance.

Design/methodology/approach

The study adopted a mixed methods approach which encompasses initial expert interviews and subsequent questionnaire surveys. Partial least squares structural equation modelling was applied to test the proposed hypotheses of the study.

Findings

The results highlight the significant influence of three added value indicators on organizational performance while highlighting the need for strategic corporate real estate risk management to enhance performance.

Practical implications

The results of the study are useful to identify relevant added value indicators that can improve organizational performance as well as potential added value indicators that deserve attention for performance improvement. Moreover, it presents knowledge on corporate performance indicators which is sparsely explored in corporate real estate management literature.

Originality/value

This study makes a novel contribution to corporate real estate management literature by presenting a parsimonious model to alert corporate real estate managers on essential added value parameters towards organizational performance. The model set the theoretical debates to exploit additional added value dimensions and organizational performance.

Green creativity, TQM and business sustainability of large manufacturing firms in Malaysia

Purpose

This paper examines the effect of green creativity (GC) on the business sustainability (BS) of large manufacturing firms (LMFs) in Malaysia and investigates the mediating effect of total quality management (TQM) on this relationship.

Design/Methodology/Approach

A quantitative approach was adopted, using a sample of 206 LMFs; the formulated hypotheses were analysed using partial least squares structural equation modeling.

Findings

The findings revealed a significant positive effect of GC on the TQM and BS of LMFs and a significant positive effect of TQM on their BS. TQM also has a full mediating effect on the relationship between GC and BS.

Research Limitations/Implications

One of the limitations of this study is its focus on Malaysian LMFs. It nevertheless contributes to the literature by extending knowledge concerning their TQM, GC and multi-faceted perspectives. This is largely ignored in literature and, as such, the study paves the way for additional research.

Practical Implications

The findings of this study may be used as guidelines for CEOs, particularly on the way TQM and GC can be developed for enhanced BS, in the context of South Asian countries.

Originality/Value

This study is the first to test the influence of GC on Malaysian LMFs’ BS and the first worldwide to investigate the mediating effect of TQM on their GC-BS relationship.

Quality 4.0 – understanding the criticality of the dimensions using the analytic hierarchy process (AHP) technique

Purpose

In this era of Industry 4.0, characterized by disruptive technologies, there is a need to identify and understand the role of the quality function in the excellence journey. Quality 4.0 refers to the digitalization of quality work in the context of Industry 4.0. As Quality 4.0 is a new concept, empirical research on the subject is extremely scant. Therefore, this study aims to identify and understand the criticality of the dimensions of Quality 4.0.

Design/methodology/approach

The present research identifies 12 axes (dimensions) of Quality 4.0 based on literature review and inputs from experts. The identified axes have been prioritized using the analytic hierarchy process (AHP) technique.

Findings

The study concludes that the 12 dimensions contribute to outcome indicators such as organizational performance, agility and sustainability. It further adds that though technology is vital for Quality 4.0, elements of traditional quality such as leadership, quality culture, customer focus, quality systems, compliance, competence, analytical thinking, data-driven decision making, etc. are mandatory for the transformation journey. In today's context except for a few matured organizations, others are even struggling to implement the traditional aspects of quality.

Research limitations/implications

Cues to further research are provided which would help in the better understanding of Quality 4.0 and its role in the Industry 4.0 scenario.

Practical implications

This research would help the practitioners understand the determinants of Quality 4.0 system and their effects on organizational performance, agility and sustainability.

Originality/value

The present research work strives to throw light on the criticality of the dimensions of Quality 4.0, thereby contributing to theory building, especially given the paucity of literature in Quality 4.0.

Relationship between Sustainable Management Activities and Financial Performance: Mediating Effects of Non-Financial Performance and Moderating Effects of Institutional Environment

The importance of corporate responsibility for society and environments is emphasized by increasing influence of firms on various stakeholders. Firms strengthen environmental, social, and governance (ESG) activities, which are critical elements for sustainable management. However, there are inconsistent findings on the relationship between ESG activities and firms’ financial performance in prior studies because of the lack of full consideration of internal mechanisms and external conditions. To overcome this limitation, this study investigates the mediating effect of non-financial performance and the moderating effect of the institutional environment on the relationship between firms’ ESG activities and their financial performance in a unified moderated mediation model. Samples for empirical analyses were collected by a survey from 304 small and medium-sized Chinese manufacturers. The results of a mediation analysis reveal that each ESG activity has a positive effect on firms’ financial performance, and the impact of ESG activities on financial performance is completely mediated by non-financial performance. The results of a moderated mediation analysis further indicate that the mediating effect varies depending on the level of institutional pressure from the government, consumers, and competitors. The study suggests the need for interdisciplinary research in sustainable management and institutional theory and emphasizes the importance of sustainable management for performance improvement in a changing environment.

The influence of soft and hard TQM on quality performance and patient satisfaction in health care: investigating direct and indirect effects

PURPOSE

The present study conceptualizes total quality management (TQM) in terms of soft and hard aspects and examines their effects on quality performance and patient satisfaction. The indirect effects of soft and hard TQM on patient satisfaction through quality performance are also investigated.

DESIGN/METHODOLOGY/APPROACH

A multi-item questionnaire was prepared to gather primary data from a sample of 312 medical employees in private hospitals in Jordan. The measurement model was evaluated for validity and reliability and determined to be acceptable. Structural equation modeling (SEM) was applied to test the research hypotheses.

FINDINGS

The results revealed that soft TQM has a strong positive effect on quality performance and patient satisfaction. Hard TQM was found to positively affect quality performance but to a lesser extent compared to soft TQM. The effect of hard TQM on patient satisfaction, meanwhile, was not significant. Quality performance positively mediated the relationship between TQM - both soft and hard - and patient satisfaction.

ORIGINALITY/VALUE

This study is one of the first to conceptualize TQM in terms of soft and hard aspects in a health care context. It offers valuable insights for managers of private hospitals looking to enhance quality performance and patient satisfaction. The results reveal that soft TQM is the primary driver of quality performance and patient satisfaction in the health care context, which is in stark contrast to the manufacturing sector.

Impact of soft TQM practices on employee work role performance: role of innovative work behaviour and initiative climate

Purpose

The purpose of this paper is to investigate the effect of soft total quality management (TQM) practices on employee work role performance in the manufacturing sector of United Arab Emirates. It also examined the indirect effect of innovative work behaviour and initiative climate.

Design/methodology/approach

The study is based on a conclusive research design and survey data was collected from 290 employees working in non-managerial positions across various manufacturing companies in UAE. The hypotheses of the empirical study are tested using structural equation modelling. The indirect effects created through moderated mediation are analysed using Hayes Process Macro.

Findings

The results show that soft TQM practices have a positive influence on work role performance. Employee innovative work behaviour acts as a partial mediator and initiative climate moderates the relationship.

Research limitations/implications

The study adopted a cross-sectional analysis and single informants are used, so it is advised that the interpretation of the results is made with enough caution.

Practical implications

Practitioners must bear in mind that when the employees are adequately trained, empowered, involved and organized as team, it would result in employee innovative behaviour and improved work role performance. The top management should be persuaded to be more committed to the above-mentioned activities for more positive employee-level outcomes.

Originality/value

Very few studies have conducted an empirical validation at the intersection of human resource management (HRM) and TQM. This is one of the first studies to examine the relationship between soft TQM and employee work role performance.

Pharmacy service factors and pharmacy performance: the role of patient satisfaction in community pharmacies

Purpose

This study aims to examine the effects of pharmacy service factors (namely, medication teaching, service promptness, pharmacist attitudes, medication supply and pharmacy location) on patient satisfaction with community pharmacies in Jordan and to explore the effect of patient satisfaction on pharmacy performance.

Design/methodology/approach

Descriptive analytical methodology, with a quantitative approach using survey strategy was applied. The study population represented the whole population of Jordan (2.033 million households). Data were collected using an online questionnaire. A convenient quota sample of 1,000 respondents was targeted; 502 valid questionnaires were returned, representing an effective response rate of 50.2%. The study hypotheses were tested using path analysis.

Findings

The results showed that the service factors contributing most significantly to patient satisfaction in Jordan are medication supply, pharmacist attitudes, medication teaching and service promptness, in descending order of influence. Meanwhile, the effect of pharmacy location on patient satisfaction proved to be insignificant. In addition, patient satisfaction proved to have a highly positive impact on pharmacy performance.

Originality/value

This study addresses a debatable issue in the literature regarding the influence that pharmacy service factors can have on patient satisfaction. In addition, to the best of the researchers’ knowledge, this is the first study to explore the proposed effects in Jordan. It is also one of the first to investigate the effect of patient satisfaction on community pharmacy performance.

The impact of quality management practices on innovation: an empirical research study of Brazilian manufacturing companies

Purpose

The aim of this study is to investigate the effects of soft and hard quality management (QM) practices on innovation performance, considering innovation practices as a contextual variable mediating this relationship.

Design/methodology/approach

Using data from 132 Brazilian manufacturing companies, partial least square–structural equation modeling (PLS–SEM) is employed to test if soft and hard QM practices, directly, affect innovation practices and, indirectly, innovation performance. This investigation also aims to identify whether the relationships are maintained regardless of the size of the company.

Findings

The results suggest that soft QM has a positive effect on hard QM. However, only soft QM, not hard QM, has a significant effect on innovation practices. Additionally, soft QM has a significant positive effect on innovation performance through innovation practices. Company size does not influence the relationships.

Practical implications

The findings can help managers to adjust their managerial practices to enhance the effective impact of QM on innovation performance.

Originality/value

The previous literature presents conflicting results on the relationship between QM and innovation performance. Most studies have proposed a direct relationship between both constructs. This study considers innovation practices as a mediator in this relationship. Furthermore, this paper adds to the scarce literature reporting related studies conducted in developing countries.

The impact of organizational culture archetypes on quality performance and total quality management: the role of employee engagement and individual values

Purpose

The relationship between organizational culture and total quality management (TQM) can be facilitated by the virtue of certain psychological states. Employee engagement refers to a mechanism foreseeable to predict the successful implementation of TQM. Therefore, this study focuses on the attribution theory to propose a model that presents a differential impact of organizational culture archetypes on quality performance and TQM, while underlying role of employee engagement and individual values.

Design/methodology/approach

An empirical study was performed based on the data collected from 153 senior employees working in hotel companies. This study has used partial least squares path modeling (PLS-SEM) to test the relationships and model proposed.

Findings

The findings have confirmed the hypotheses using PLS-SEM and provided a positive significant impact of organizational culture archetypes on employee engagement with quality initiatives; individual values on organizational cultural archetypes and employee engagement with quality initiatives on TQM implementation.

Originality/value

The study concluded that the impact of organizational culture on quality performance and TQM is significant. It is, therefore, suggested that management of hotel companies should work to increase the level of engagement, encourage cultures, while reducing the level of power culture with the emphasis given to individual and organizational quality initiatives.

Beware of side effects on quality! Investigating the implications of home working on work-life balance in educational services

Purpose

Telecommuting from home is back up on the agenda as a result of the unforeseen challenges brought by COVID-19. Working from home permits to avoid disruption in the ordinary functioning of educational institutions triggered by social distancing. However, home-based telecommuting may have some side effects on employees, especially in terms of work-life balance. Soft Total Quality Management (TQM) initiatives are needed to address these side effects. The article intends to shed light on these issues, providing some food for thought to scholars and practitioners.

Design/methodology/approach

Secondary data about the working conditions of 2,046 people employed in the education sector across Europe were investigated. A serial mediation analysis was designed to examine the direct and indirect implications of working from home on work-life balance.

Findings

The study suggests that home-based telecommuting may trigger work-to-life and life-to-work conflicts, due to the blurring of boundaries between work and everyday life. Soft tools, such as organizational meaningfulness (OM) and work-related well-being (WB), mediate the relationship between working from home (HW) and work-life conflicts (WLC), lessening the negative implications of working from home on work-life balance.

Practical implications

The design and the implementation of home-based telecommuting arrangements should include a special concern for soft TQM practices. Among others, OM and WB are likely to minimize the disruption of remote employees' jobs and interpersonal relationships. Failure to do so impairs the ability of home-based employees to make sense out of their working arrangements and to achieve a sustainable work-life balance.

Originality/value

This is one of the first attempts to illuminate the side effects of home-based telecommuting and to investigate the role of soft TQM in addressing these side effects.

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).

The effect of corporate social responsibility performance on financial performance: the case of food industry

Purpose

The present study examines the impact of the different dimensions of corporate social responsibility (CSR) performance on the financial performance of food companies.

Design/methodology/approach

As proxies for the financial performance, two different indices are employed: a single index, namely, operating income and an aggregate financial index, namely, economic score. The CSR performance based on Thomson Reuter’s data stream methodology involves three distinct aspects of the CSR concept: environmental, social and governance for the time spanning 2012–2017.

Findings

Findings based on estimated generalized least squares (EGLS) indicate that the higher level of environmental performance (as described by an aggregate environmental index), the publishing of a stand-alone sustainable report and the implementation of quality principles, such as Total Quality Management (TQM), Lean and Six Sigma positively affect the financial performance.

Originality/value

The results provide useful implications to stakeholders, mainly to corporate managers and investors for uptaking initiatives aiming toward the eco-efficiency of the food company.

An ANP-Balanced Scorecard Methodology to Quantify the Impact of TQM Elements on Organisational Strategic Sustainable Development: Application to an Oil Firm

This paper presents a methodology for quantifying the impact of Total Quality Management TQM elements on organisational strategic sustainable development, integrating within it the well-known strategic management tool of Balanced Scorecard to represent the strategic part of the organisations, and the multi-criteria technique Analytic Network Process (ANP) to identify and quantify the mentioned impact. Additionally, the application of TQM generates directly some organisational improvements—or outputs—which help model a decisional ANP network constituted by all three building blocks—TQM elements, strategic objectives and outputs—and their interrelationships. The application of the methodology to an oil firm carried out by an expert group offered, from a decision-making point of view, meaningful results that were developed following three different analyses: Global analysis, which identified the global weight of each variable; Analysis of Influences, which established sound cause–effect relationships between the variables to identify the elements—TQM and outputs—that are more important to achieve the strategic objectives; and the Integrated analysis, which pointed out which TQM elements should be fostered in order to achieve the most important sustainable strategic objectives. Finally, it is suggested to apply the methodology to other types of size and sector activity organisations, as well as to use other techniques that introduce fuzzy elements.

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.

Job stress and organizational commitment in hospitals

Purpose

This study aims to examine the effect of job stress on perceived organizational support (POS) and organizational commitment in hospitals in Amman, Jordan. It also investigated the mediating role of POS on the relationship between job stress and organizational commitment.

Design/methodology/approach

The study used a cross-sectional, quantitative survey design to collect data from 500 employees in six hospitals in Amman, Jordan. An Arabic version of a reliable and valid measurement instrument was used. A convenience sample was selected from employees in the targeted hospitals. Mediating effect was tested using the approach proposed by Baron and Kenny (1986). Validity and reliability tests were applied, and regression analyses were used to test the study hypotheses.

Findings

The results revealed a significant negative effect of job stress on POS and organizational commitment. The results also indicated full negative mediating effect of POS on the relationship between job stress and organizational commitment.

Practical implications

This research promotes hospitals to implement strategies that reduce employees’ job stress, increase levels of POS among employees working at hospitals, which, in turn, will enhance employees’ commitment to their hospitals.

Originality/value

This study is one of the first to investigate the proposed effects in Jordan in particular, and the Middle East in general. In addition, it contributes to the literature by examining the mediating effect of POS on the relationship between job stress and organizational commitment. Recommendations are provided to practitioners in hospitals based on the study results.

Human Resource Abilities and Skills in TQM for Sustainable Enterprises

Total quality management (TQM) is a lean manufacturing tool that focuses on ensuring the production of goods that meet design specifications and give customer satisfaction, both attractive benefits highly appreciated by managers. However, there are several factors involved in the success of TQM programs, many of which are cultural aspects associated with human resources (HR). This article presents a structural equation model that integrates three latent variables related to internal HR: “managerial commitment,” “employee integration,” and “training and education,” which are linked to the operational benefits of a manufacturing system. The variables are connected through six hypotheses that have been validated with information obtained from 398 responses of a questionnaire applied to manufacturing industry professionals. In addition, a sensitivity analysis was carried out to describe the probabilities of occurrence for the variables at low and high levels. The hypotheses were statistically validated with the partial least squared technique, where the results showed that human factors play an essential role in the success of TQM, since the direct, indirect, and total effects of managerial commitment, employee integration and training, and education processes on the benefits obtained from the implementation of TQM were statistically significant at 95% confidence.

Lean management and operational performance in health care

Purpose

The purpose of this paper is to examine the impact of lean management (LM) on operational performance (OP) in the context of health care in Jordanian private hospitals. LM is measured using four bundles: total quality management (TQM), human resource management (HRM), just-in-time system (JIT) and total productive maintenance (TPM). The study also investigates the effects of OP dimensions on hospitals’ business performance (BP).

Design/methodology/approach

The study is based on survey data collected from 260 respondents from 25 private hospitals in Jordan. Validity and reliability analyses were performed using SPSS and Amos, and the study hypotheses were tested using structural equation modeling.

Findings

The study found that the TQM bundle affects quality performance positively, but does not affect efficiency and accessibility performances, while the HRM bundle positively affects all OP dimensions. Furthermore, the JIT bundle positively contributes to both efficiency and accessibility performances, while the TPM bundle positively influences quality and accessibility performances. Moreover, the results have demonstrated that OP dimensions of quality and accessibility significantly and positively affect hospitals’ BP.

Originality/value

This study is one of the first to adapt the four lean bundles popularized in the manufacturing sector and apply them in a health-care context. It examines the effects of the four lean bundles on hospitals’ OP in terms of efficiency, quality and accessibility. In addition, the study demonstrates the role of OP dimensions in improving private hospitals’ BP.