A structural equation model of TQM, market orientation and service quality

Abstract

PurposeThe purpose of this paper is to examine the relationship between total quality management (TQM), market orientation and service quality in the Malaysian service industry.Design/methodology/approachData from 150 service firms were collected. Structural equation modeling was employed in this study to examine the associations between TQM, market orientation and service quality.FindingsThis study provides empirical evidence and confirms findings obtained from previous studies that TQM has a positive and significant relationship with both market orientation and service quality. Moreover, it was discovered that market orientation is also significantly related to service quality.Research limitations/implicationsThis research study implies that if firms are not able to comprehend the importance of TQM dimensions, by which the different dimensions of it can influence a firm's performance, they may not succeed in harvesting the full value of market orientation and service quality. Meanwhile, the findings may guide the service practitioners to understand the importance of TQM in their managerial actions in enhancing market orientation and service quality, which serves as a sound foundation for building a distinguished point of differentiation in their services.Originality/valuePast researchers have not looked into the tri‐dimensional relationship between TQM, market orientation and service quality and hence research is to be called for in this area. The paper provides practitioners with useful guidelines on the appropriate TQM practices to be implemented so that market orientation and the quality of service can be enhanced, creating superior value to the customers in a unique way, which subsequently improves a firm's competitiveness.

Does safety-oriented corporate social responsibility promote innovation in the Thai trucking industry?

“…Boon Ooi et al (2007) note the important contribution of customer focus to job satisfaction. Lam et al (2012) find positive relationships among TQM, market orientation, and service quality. Their measure for TQM consists of six TQM dimensions, including customer focus and human resource focus.…”

“…Training and teamwork are constituent elements of TQM practice (Boon Ooi et al, 2007;Lam, Lee, Ooi, & Phusavat, 2012). Although training and teamwork for TQM focus mainly on continuously improving employees' capacity and quality management, these activities can increase customer satisfaction (Forza & Filippini, 1998), therefore, they may result in promoting customer orientation and innovation.…”

Market orientation and corporate social responsibility: towards an integrated conceptual framework

“…According to Voon (2006), service is said to be the competitive tool for differentiation that is difficult for rivals to imitate, and service quality needs to be strategically managed for competitive advantage. The literature underscores the point that market-oriented service behaviors are instrumental in delivering quality service (Camarero 2007;Lam et al 2012;Voon 2006). Market orientation could also lead to improved service quality for service industry organisations (Agarwal et al 2003;Camarero 2007;Lam et al 2012).…”

“…The literature underscores the point that market-oriented service behaviors are instrumental in delivering quality service (Camarero 2007;Lam et al 2012;Voon 2006). Market orientation could also lead to improved service quality for service industry organisations (Agarwal et al 2003;Camarero 2007;Lam et al 2012). Camarero's (2007) study shows that the market-driven financial and insurance companies are more committed to meeting or exceeding their customers' expectations and as such, to providing premium service quality for their customers.…”

“…Thus far, it has been argued that strong market-oriented service providers are more likely to meet or exceed their customer needs and expectations with the provision of superior quality services. Lam et al (2012) investigated the relationship between market orientation and service quality from a developing economy perspective and reported that market orientation is significantly related to service quality.…”