The effects of soft total quality management on the sustainable development of SMEs

Abstract

This study investigates the soft total quality management (soft TQM) dimensions that affect the environmental and social sustainability of Finnish small and medium‐sized enterprises (SMEs), considering the company‘s business, size, and possible certificates as control variables. Sustainable business has been found to be key to the success of companies, so investing in it is essential for companies. With the help of extensive literature research, the TQM dimensions covering the entire business activity were determined, from which detailed issues were identified. To ascertain the level of implementation of detailed issues, the survey was constructed and sent to 6889 randomly selected CEOs in autumn 2020. A total of 271 responses were received. Based on prior literature and studies, 10 hypotheses were proposed. The collected data were analyzed using regression analysis. The results reveal that two practices—business management systems and human resources (HR) practices—were related to environmental sustainability, while only business management system was related to social sustainability. None of the control variables affected environmental sustainability; however, the industrial sector influenced social sustainability. The study presents recommendations for company managers and the government to support sustainable development, especially in Finnish SMEs. As a practical contribution, the study demonstrates the importance of designing and implementing business management systems for enhanced sustainability. Management should also appreciate that sustainability will not automatically be set at a high level upon certification; thus, the performance of operations and processes should be monitored.

Evaluation and optimization of business environment based on sustainable development perspective: Exploring the role of the reform of government functions

“…The business environment can fully reflect the core competitiveness of independent economies, is related to the vital interests of market entities, and is a critical factor for market entities to achieve sustainable development (Lepistö et al, 2023). With the continuous promotion of sustainable development goals (SDGs) in recent years, higher requirements have been put forward for the business environment.…”

Innovating for impact: Proposing quality 4.0 integration to achieve sustainable development goals in microenterprises

“…This is because it makes it possible to be more connected, facilitating the evaluation, monitoring, and regulation of every process. As a result, the decision-making process based on facts and information in realtime will be adopted, jointly with the expansion of the manufacturing and service processes' capacity and productivity and the creation of new products and services for the market (Lepistö et al, 2023).…”

“…On the other hand, quality management can be used as a strategy to embrace cleaner production operating models, which can include social responsibility and environmental protection (Lepistö et al, 2023). In addition, it has demonstrated to promote sustainable development and strive for excellence.…”

“…In addition, it has demonstrated to promote sustainable development and strive for excellence. Training staff, comprehending client needs, measuring essential business operations, and minimising variability are some of its goals (Lepistö et al, 2023).…”

“…The adoption of these technologies makes it possible to increase its environmental and social sustainability, which guarantees the future success of the company, and obtain a competitive advantage in the market (Lepistö et al, 2023). Although microenterprises and SMEs have limited resources, the drive to adopt technology allows them to save costs, waste, and energy, improve production processes and the development of new skills by their employees (Lepistö et al, 2023). In the study of Jardon and Martinez-Cobas (2020) mentions that micro and SMEs enterprises, are constantly seeking to adopt strategies and tools that help them to have a continuous improvement while achieving the SDGs.…”