Article2006

An analysis of the relationship between TQM implementation and organizational performance

Mehmet Demirbağ · Ekrem Tatoğlu · Mehmet Tekinkuş · Selim Zaim

402 citations0/0 files storedJournal of Manufacturing Technology Management

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Quality and Supply Management Quality and Management Systems Management Systems and Quality Improvement

Abstract

Abstract Purpose – The principal aim of this paper is to determine the critical factors of total quality management (TQM) and to measure their effect on organizational performance of SMEs operating in Turkish textile industry. Design/methodology/approach – Data for this study was collected using a self‐administered questionnaire that was distributed to 500 SMEs in textile industry in the city of Istanbul in Turkey selected randomly from the database of Turkish Small Business Administration (KOSGEB). Of the 500 questionnaires posted, a total of 163 questionnaires were returned. Findings – Using exploratory and confirmatory factor analyses, seven empirically validated dimensions of TQM were identified. The structural equation modelling technique was employed to investigate the relationship between the implementation of TQM practices and organizational performance. Data analysis reveals that there is a strong positive relationship between TQM practices and non‐financial performance of SMEs, while there is only weak influence of TQM practices on financial performance of SMEs. With only a mediating effect of non‐financial performance that the TQM practices has a strong positive impact on financial performance of SMEs. Research limitations/implications – The sample is restricted to only a single region and a single industry, so it would be strongly recommended that data be gathered from various parts of Turkey including both various manufacturing and service industries. As the data in this study were collected from top managers of organizations on the basis of their subjective evaluations, objective performance indicators should also be employed in the analysis. Originality/value – Despite some attempts on the applicability of TQM practices and advanced manufacturing technologies as well as their impact on organizational performance of SMEs, there is a lack of systematic empirical evidence regarding the extent of TQM implementation and its effect on performance of SMEs in emerging market economies. This paper presents new data and empirical insights into the relationship between TQM implementation and organizational performance in SMEs operating in Turkey.

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References

1997The balanced scorecard: Translating strategy into action 1995Total quality management as competitive advantage: A review and empirical study 1989An Instrument for Measuring the Critical Factors of Quality Management 1994A framework for quality management research and an associated measurement instrument 2003The relationship between total quality management practices and their effects on firm performance 1996Development and Validation of TQM Implementation Constructs 1987Competing on the Eight Dimensions of Quality 1995Total Quality Management: Empirical, Conceptual, and Practical Issues

Cited by

2009Critical success factors for TQM implementation and their impact on performance of SMEs 2008Strategy development by SMEs for competitiveness: a review 2014The Measurements of Firm Performance’s Dimensions 2017A systematic literature review on total quality management critical success factors and the identification of new avenues of research 2019Sustainable development in Asian manufacturing SMEs: Progress and directions 2021

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