Cultural influences on TQM implementation and financial performance in tunisian firms

Abstract

Some recent studies have also advocated that an organization could achieve better performance \nand higher efficiency through establishing right quality culture. Implementing TQM and its main \ncomponents represents a dramatic challenge from those of traditional management. It requires \na massive change in the social and technological components of a workforce. This study examines \nthe relationships between corporate culture, TQM implementation and financial performance of \nTunisian manufacturing firms. The model is tested using structural equations, surveying 70 Tunisi- \nan firms. The causal analysis results show no significant and direct effect of TQM implementation \non Sales and operating income growth, but a negative and significant direct effect of TQM imple- \nmentation on ROA and ROS. Furthermore, results show a positive and a significant relationship \nbetween corporate culture and the TQM implementation. This study also assessed the culture \ndimensions shared among Tunisian manufacturing firms and investigates their relationship with \nTQM practices. Successful adoption of TQM practices lies largely on a culture oriented innovati- \non characterized by an openness to change, propensity to experiment and take risks and culture \noriented people reflecting perceived support, cooperation, mutual respect and consideration be- \ntween organizational members. The results suggested that there was no strong evidence to verify \nthe moderator effect of the corporate culture on the relationship between TQM implementation \nand financial performance. The key managerial implications of these results are that firms should- \nn’t get disillusioned with TQM when short-term improvements did not materialize given that TQM \nimplementation is an expensive immaterial investment and that many cultural traits affect the bene- \nfits of effective TQM implementations.

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