The impact of total quality management practices with effects from moderators and mediators on business performance
Total Quality Management (TQM) is a very vital driver in determining that an organisation can survive in the global market. Based on institutional theory, TQM is a solution for improving business performance. Japanese companies have had superior achievement and left their non-Japanese counterparts f...
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| Format: | Thesis |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/7772/ http://eprints.uthm.edu.my/7772/1/mdfauziph113123d14ttp.pdf |
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| Summary: | Total Quality Management (TQM) is a very vital driver in determining that
an organisation can survive in the global market. Based on institutional theory, TQM
is a solution for improving business performance. Japanese companies have had
superior achievement and left their non-Japanese counterparts far behind. One of the
TQM strengths as observed in Japanese companies is technical aspects, i.e., tools and
techniques namely total productive maintenance (TPM), statistical process control
(SPC) and lean production. However, most previous works have given less emphasis
on TPM, SPC and lean production as mediators; this has thus been identified as a
theoretical gap. The main objective of this study is to develop a conceptual
framework with TPM, SPC and lean production as mediators. Ownership, Asean
Free Trade Agreement (AFTA) and mechanistic organisation were tested as
moderators. Finally, a combination conceptual framework between mediators and
moderators was developed for further evaluation to examine the mediator effects in
different ownership via moderated mediation model. First, three theories namely
institutional, system and contingency theory were identified and applied in this study.
32 hypotheses were proposed to develop conceptual framework based on structural
equation modelling (SEM). Four conceptual frameworks were identified and
developed. Data were obtained from 319 automotive companies and related suppliers
in Malaysia with 21.3% response rate. The structural model results proved that TQM
has a significant impact on business performance. TQM practices were better
predictor of business performance in Japanese companies. This study revealed that
tools and techniques namely TPM, SPC and lean production were important as
mediators between TQM and business performance. Furthermore, based on
moderated mediation testing of ownership on mediator effect, TPM and SPC showed
significant effect, with Japanese companies having greater relationship than non-
Japanese companies. In this study, researchers proposed business ethics and
transformation performance as new variables in TQM and business performance
constructs. In addition, this study proposed step by step improvement in sequence as
follows: TQM, TPM, SPC and lean production. Based on the moderator test,
ownership, AFTA and mechanistic were significant moderators between TQM and
business performance. Management leadership, information and analysis, new
product management, business ethics and human resource development showed
significant difference in TQM practices in favour of Japanese companies. This is a
theoretical and managerial finding that adds to the existing literature on quality
management since few studies have been conducted combining the three theories as
mentioned in the conceptual framework in TQM. |
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