Total Quality Management Dimension and SME Performance: A Quantitative Approach
Keywords:
Total Quality Management, Business Performance, SMEsAbstract
The objective of this study is to measure the relationship between some TQM dimensions and business performance of SMEs. The study seeks to advance the understanding of TQM and also resolves some controversies that appear in the literature concerning the relationship between TQM dimensions and performance relationship. Using questionnaire, the data for this study was drawn from 367 SMEs operating in Punjab, Pakistan. Structural equation modeling (SEM) technique was used for analysis. The findings indicate that management leadership has a significant effect on business performance of SMEs, whereas, the customer focus and continuous improvement to business performance relationship were found not significant.
Downloads
References
Joiner, T. a. (2007). Total quality management and performance: The role of organization support and co-worker support. International Journal of Quality & Reliability Management, 24(6), 617–627. doi:10.1108/02656710710757808
Arawati, A. (2005). The structural linkages between TQM, product quality performance, and business performance: Preliminary empirical study in electronics companies. Singapore Management Review, 27(1), 87-105.
Arawati, Ridzuan & Joiner, T. a. (2007). Total quality management and performance: The role of organization support and co-worker support. International Journal of Quality & Reliability Management, 24(6), 617–627.
Bagozzi, R. P. & Lynn, P. W. (1982). Representing and Testing Organizational Theories: A Holistic Construal. Administrative Science Quarterly 27, 459–489.
Benavent, F. B., Ros, S. C., & Moreno-Luzon, M. (2005). A model of quality management self-assessment: An exploratory research. International Journal of Quality & Reliability Management, 22(5), 432-451.
Brah, S. A., Tee, S. S. L., & Rao, B. M.(2002). Relationship between TQM and performance of Singaporean companies. International Journal of Quality & Reliability, 19(4), 356- 379.
Choi, T. Y., & Eboch, K. (1998). The TQM paradox: relation among TQM practices, plant performance, and customer satisfaction. Journal of Operations Management, 17, 59-75.
Chuan, T. K., & Soon, L. C. (2000). A detailed trend analysis of national quality awards worldwide. Total Quality Management, 11(8), 1065-1080.
Das, A., Handfield, R. B., Calantone, R. J., & Ghosh, S. (2000). A contingent view of quality management- the impact of international competition on quality. Decision Sciences, 31, 649-690.
Demirbag M. T., Tatoglu, E., Tekinus, M., & Zaim, S. (2006). An analysis of the relationship between TQM implementation and organizational performance: evidence from Turkish SMEs. Journal of Manufacturing Technology Management,17(6), 829-847.
Douglas, T. J., & Judge Jr, Q. W. (2001). Total Quality Management and competitive advantage; the role of structural control and exploration. Academy of Management Journal, 44, 158-169.
Escrig-Tena, A. B.(2004). TQM as a competitive factor: A theoretical and Empirical Analysis. International Journal of Quality & Reliability Management, 21(6), 612-637.
Feng, J., Prajogo, D. I., Tan, K. C., & Sohal, A. S. ( 2006). The impact of TQM practices on performance: A comparative study between Australian and Singaporean organizations. European Journal of Innovation Management, 9(3), 269-278.
Flynn, B.B., Schroeder, R.C. & Sakakibara, S. (1994). A framework for quality management research and an associated measurement instrument. Journal of Operations Management, 11, 339-405.
Fornell, C., & Larcker, D.F. (1981). Evaluating structural equation models with unobservable variable and measurement error. Journal of Marketing Research, 18(1), 39-50.
Gatchalian, M. M. (1997). People empowerment: The key to TQM success. The TQM Magazine, 9(6), 429-433.
Joiner, T. A. (2007). Total quality management and performance: The role of organization support and co-worker support. International Journal of Quality & Reliability Management, 24(6), 617–627. doi:10.1108/02656710710757808
Hair, J. F., Black, Andersen, R. E., & Tatham, R. L., & Black, W.C. (1998). Multivariate data analysis (5th ed.). NJ: Pearson Education international, Inc.
Hair, J. F., Andersen, R. E., & Tatham, R. L.(2010). Multivariate data analysis (7thed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Harrington, D., & Williams, B. (2004). Moving the quality efforts foreward- the emerging role of the middle manager. Managing Service Quality, 14, 297-308.
Hendrick, K. B., & Singhal, V. R. (2001). Firm characterstics, total quality management, and firm performance. Journal of Operations management, 19, 269-285.
Hitt, M. A., & Ireland, R. D. (2002). The essence of strategic leadership: Managing human and social capital. Journal of Leadership & Organizational Studies, 9, 3-15.
Hooley, G., Fahy, J., Greenley, G., & Beracs, J. e. a. (2003). Market orientation in the service sector of transition economies of Central Europe. European Journal of Marketing, 37, 86-107.
Jabeen, R., & Mahmood, R. (2014). The Relationship between TQM, EO and Business Performance of SMEs: Mediating Role of Market Orientation. International Postgraduate Business Journal, vol. 6 (Special Issues) (1), 77-93.
Joiner, T. A. (2007). Total quality management and performance: The role of organization support and co-worker support. International Journal of Quality & Reliability Management, 24(6), 617–627.
Jutla, D., Bodorik, P. & Dhaliqal, J. (2002). Supporting the e-business readiness of small and medium-sized enterprises: approaches and metrics. Internet Research: Electronic Networking Applications and Policy, 12(2),139-164.
Kaynak, H. (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21, 405-435.
Koehler, J. W. & Pankowski, J. M. (1996). Quality government: Designing, developing and implementing TQM. Florida: St Lucie Press.
Li, J. H., Andersen, A. R., & Harrison, R. T. (2003). Total quality management principles and practices in China. International Journal of Quality & Reliability Management, 20(9), 1026-1050.
Llorens Montes, F. J., & Verdu Jover, A. J. (2004). Total quality management, institutional isomorphism and performance: The case of financial services. The Service Industries Journal, 24(5), 103-119.
Madu, C.N., Kuei, C., & Lin, C. (1995). A comparative analysis of quality practice in manufacturing firms in the US and Taiwan. Decision Sciences 26, 621–635.
Matzler, K., Hinterhuber, H., Daxer, C., & Huber, M. (2005). The relationship between customer satisfaction and shareholder value. Total Quality Management and Business Excellence, 16, 671-680.
McCabe, D. &Wilkinson, A. (1998). The rise and fall of TQM: the vision, meaning and operation of change. Industrial Relations Journal, 29,18-29.
Mehra, S., Hoffman, J.M. , & Sirias, D. (2001) TQM as a management strategy for the next millennium. International Journal of Operations & Production Management, 21(5/6), 855-876.
Nair, A. (2006). Meta-analysis of the relationship between quality management practices and firm performance-implications for quality management theory development. Journal of Operations Management, 24, 948-975.
O’Regan, N., Ghobadian, A. & Sims, M. (2006). Fast tracking innovation in manufacturing SMEs. Technovation, 26(2), 251-261.
Pinho, J. C. (2008). TQM and performance in small medium enterprises: The mediating effect of customer orientation and innovation. International Journal of Quality & Reliability Management, 25(3), 256-275.
Powell, T.C. (1995).Total quality management as competitive advantage: A review and empirical study. Strategic Management Journal, 16, 15-37.
Ross, J. E. (1994). Total Quality Management: Text and Cases Readings, (2nd Ed). Kogan Page, London.
Samson, D., & Terziovski, M. (1999). The relationship between total quality management practices and operational performance. Journal of Operations Management, 17(3), 393-409.
Shehu, A.M., & Mahmood, R. (2014a). Determinig the effect of organizational culture on
Small and Medium Enterprises performance: A SEM Approach. Journal of Economics and Sustainable Development, 5(17), 1-9.
Shehu, A.M., & Mahmood, R. (2014b). Market orientation and organizational culture’s
impact on SME performance: A SEM Approach. International Affairs and Global Strategy, 24, 1-10.
Westland, A. H., Gustafsson, C., Lang, E., & Mattsoon, B. (2005). On customer satisfaction and financial results in Swedish real estate market. Total Quality Management and Business Excellence, 16, 1149-1159.
Yasin, M. M., Kunt, J. A. M., & Zimmerer, T. W. (2004). TQM practices in service organizations: An exploratory study into the implementation, outcomes and effectiveness. Managing Service Quality, 14(5), 377-389.
Yeung, C. L., & Chan, L.Y. (1998). Quality management system development: Some implications from case studies. Computers and Industrial Engineering, 35.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Disclaimer
Global Business Management Review (GBMR) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Global Business Management Review (GBMR) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.
Submission of an article is done with the understanding that the article has not been published before (except in the form of an abstract or as part of a published lecture, or thesis) that it is not under consideration for publication somewhere else; that if and when the article is accepted for publication, the author's consent to automatic transfer of the copyright to the publisher.