The importance of market orientation, learning orientation, and quality orientation capabilities in TQM: an example from Taiwanese software industry

Abstract

This paper investigates three important capabilities in TQM – market orientation, learning orientation, and quality orientation – and examines the relationships among them for achieving greater firm performance. From the capability perspective, market orientation as a customer-focused capability may lead to success in TQM, but its effect cannot be fully understood in isolation without considering the complemented capabilities that transform market intelligence into final products/services. This study proposes two other sources of TQM capabilities – learning orientation and quality orientation, and investigates the relationships between the three core values of TQM and firm performance. Based on the data collected from 101 Taiwanese software firms, the results suggest that organizations should link internal processes with market activities by focusing on customer/market information collection and dissemination, exploring market information through adaptive and generative learning, producing innovative improving strategies, then implementing creative strategies with quality processes. As such, firms can gain better product and service performance. Finally, the implications of the study are provided.

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