The impact of TQM practices on key performance indicators: empirical evidence from automotive dealerships

Abstract

The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The relationship between quality and performance management is still adversarial, wherein the nonfi nancial aspect of performance measurements is signifi cantly ignored. This research is conducted in the context of Malaysian automotive dealerships service centres in which the primary objectives are to identify the total quality management (TQM) practices and the fi nancial and non-fi nancial key performance indicators (KPIs) adopted in this sector, and to examine the impact of TQM practices on AS KPIs. Therefore, a conceptual model proposes that the high implementation of soft and hard dimensions of TQM has a positive impact on KPIs. A quantitative survey methodology was employed and a structured questionnaires was elaborated based on validated theoretical concepts, while the obtained data were analysed with the help of structural equation modelling (SEM) partial least squares technique (PLS). The results refer to equivalent applicability of TQM practices across manufacturing and service sectors, while the infl uence of TQM practices on the multi-oriented KPIs is empirically supported. The article contributes to the literature in service marketing and quality in which it streamlines two paradigms: TQM and performance management as it can form a guideline for scholars to deepen their relevant comprehension. In practice, the fi ndings contribute to service managers by emphasising the importance of TQM practices for the improvement of service performance in both fi nancial and non-fi nancial aspects.

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

“…Within this structured works section, it is worth mentioning the study in [34], wherein the impact of TQM elements on a set of balanced key performance indicators in the automotive industry is determined. Further, [35] investigated the impact of soft TQM on financial performance from a BSC non-financial perspective, affirming that there was a meaningful impact on the financial performance due to the effect of the customer perspective, which was directly impacted by the soft TQM elements.…”

Like-charge polymer-membrane complexation mediated by multivalent cations: One-loop-dressed strong coupling theory

“…In biological systems, exotic electrostatic phenomena challenging our intuition emerge consistently from the presence of multivalent charges [1,2]. From the electrophoretic drag of anionic polymers along the applied electric field [3][4][5] to the folding of strongly charged biopolymers [6][7][8][9] or condensation of like-charged polyelectrolyte solutions [10][11][12][13][14][15][16], a large variety of unconventional electrostatic effects have been so far observed in diverse systems whose common characteristics is the presence of multivalent charges. Naturally, this universality has motivated intensive scientific endeavour in order to identify the nature of the seemingly counterintuitive forces mediated by multivalent ions.…”

Financial Performance – Determinants and Interdependencies Between Measurement Indicators

“…Nonfinancial determinants: TQM practices (Sabbagh et al, 2019); shareholder and structure or size of the board (Al-Sa' eed, 2018; Ayako et al, 2015;Orozco et al, 2018); the number of employees (An & Kim, 2019); dividend policy (Kanakriyah, 2020;Sebastian & Siauwijaya, 2021); corporate lobby (Lin, 2019); leadership practices (Suriyankietkaew & Avery, 2016); research and development, diversification (An & Kim, 2019;Zainudin et al, 2021); competitive advantage (Nguyen et al, 2021); product/service quality, corporate social responsibility (Mahrani & Soewarno, 2018;García-Sánchez & Martínez-Ferrero, 2019); business sustainability (Imhanzenobe, 2020); management practices, innovation capacity (Fuertes-Callén & Cuellar-Fernández, 2019;; corporate governance (Humera et al, 2011).…”

“…The success of companies in this field attracts the attention of investors, who evaluate performance based on an indicator or a set of indicators considered relevant. At the same time, the success of companies in this field was a point of interest for researchers, who sought to assess financial performance (Herciu & Ogrean, 2013;Safaei Ghadikolaei et al, 2014;Pelloneova & Stichhauerova, 2019) or to identify its main determinant factors (Majtan et al, 2017;An & Kim, 2019;Sabbagh et al, 2019;Zainudin et al, 2021). In the research conducted, the performance profile was determined either based on information from the financial statements of the companies, based on information provided by the capital market, or based on perception measures (determined by survey).…”