The effect of TQM on organisational performance: empirical evidence from the textile sector of a developing country using SEM

Abstract

Total Quality Management (TQM) is a widely used management philosophy across many sectors. Organisations implement TQM in order to gain competitive advantage in terms of quality, productivity, customer satisfaction, and profitability. However, the literature seems inconclusive about the positive effect of TQM on organisational performance. Several studies argue that the effect of TQM practices on organisational performance need to be evaluated in different social, cultural, and economic settings. The effect of national culture on TQM implementation is also gaining importance. Therefore, this study provides empirical evidence from a developing country of South Asia. This study was conducted in the context of textile companies of Pakistan. The data was collected from the member companies of All Pakistan Textile Mills Association (APTMA) by using a questionnaire. The questionnaires were sent to 210 textile companies and the respondents were quality or production managers. Structural Equation Modelling (SEM) was used to investigate the relationship between TQM practices and organisational performance. The findings of this study indicate that TQM has a highly positive effect on organisational performance. These findings support the divergence argument which indicates that the positive effect of TQM on organisational performance is not limited only to the companies located in developed nations, but can also be equally achieved in the other parts of the world. All the TQM elements have positive relationship with financial and non-financial results. However, the element of people does not have significant relationship with financial and non-financial results.

The mediating role of total quality management between entrepreneurial orientation and SMEs export performance

“…Our firm export has fully met our expectation. Source: Shafiq et al (2017); Boso et al (2012); Shoham et al (2008) …”

“…The total quality management in this study contains five dimensions, where the leadership, strategy, people, resources, and process contained 6, 6, 6, 5 and 7 respectively (Shafiq et al, 2017).…”

Determinants of SME export performance

“…The operationalization of total quality management is not thus far developed, subsequently, researchers operationalized the TQM on the theme of TQM practices, some of studies operationalized base on TQM models such as Malcolm Baldrige National Quality Award (MBNQA) and European Foundation for Quality Management (EFQM) (Jafari, 2013). Moreover, a most famous model which got more intention is a European Foundation for Quality Management (EFQM), this is more applicable in the valuation of the firm performance (M. Shafiq et al, 2017). Nevertheless, some of the researchers found a positive connection between total quality management and export performance and further they suggested that TQM can be an influential resource for SME export performance, especially in context of Pakistan (Abeykoon & de Alwis, 2016;Lages et al, 2009).…”

The influence of TQM on export performance of SMEs: Empirical evidence from manufacturing sector in Pakistan using PLS-SEM

“…The TQM in this study contains five dimensions including leadership, strategy, people, resources, and process contained with numbers of 6, 6, 6,5 and 7, respectively (Muhammad Shafiq et al, 2017). In addition, the modified version of export performance (EXPERF) scale with 9 items (Shoham et al, 2008) was adapted.…”