TQM & TM PDF
TQM & TM PDF
Performance
MUHAMMAD TASLEEM*, NAWAR KHAN*, AND SYED ATHAR MASOOD**
RECEIVED ON 22.04.2015 ACCEPTED ON 14.12.2015
ABSTRACT
In the growing business competitiveness TQM (Total Quality Management) and TM (Technology
Management) practices have become important for organizational success. TQM fosters business
excellence while TM helps to deal with process and product related technological challenges. However, in
literature TM has received little consideration with TQM. This paper is a research study that attempts to
identify any combined relationship of both concepts with OP (Organizational Performance) while taking
into account different organizational contextual factors including ISO-9001 certification. Responses
from 86 different organizations in Pakistan are collected through questionnaire survey and random
sampling. Statistical analysis shows that OP is positively associated to TQM and TM. Results of this
study indicate the significance of ISO-9001 certification for TQM but do not support it for OP. It is also
observed that organizations of private sector are significantly better in TQM and TM practices, so in OP,
in comparison to government or public sector organizations. The study contributes to explore and augment
both practices for implementation to improve OP.
1. INTRODUCTION
B
enner and Tushman [1] have explained a practices while exploration capability can be managed with
wonderful premise that there is always need to technology advancement and management. Sebastianelli
balance between two dynamic capabilities of and Tamimi [2] have argued that organization’s ability to
exploitation and exploration. The capability of capitalize, integrate and balance the both capabilities
‘exploitation’ enhances productivity and efficiency simultaneously will ensure its competitiveness and
through better use of available resources. The capability performance over time.
of ‘exploration’ enriches technological innovation and
produces new resources and skills. The exploitation Organizations are striving to excel in global competition
capability can be enhanced with TQM philosophy and with increased capabilities through various advanced
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Impact of TQM and Technology Management on Organizational Performance
strategies or techniques [3]. Among which TQM has been industries and sectors in Pakistan. The study also
considered as one of the best business strategy. TQM determines the effects of different organizational
aims to raise customer satisfaction by delivering quality contextual factors and ISO 9001 certification on the OP.
products and services and to increase productivity by Previously a study has suggested that the nature of the
lowering costs [4]. Various studies provide key elements customer base, size of firm and the ISO-9000
and factors of TQM. The most common elements of TQM implementation are associated with perceived TQM and
are; top management commitment, process approach, organizational success [11]. Results through statistical
customer focus, employee involvement, quality analysis show that TQM and TM practices positively
information and continuous improvement [5]. Business associate OP. ISO-9001 certification found significantly
excellence frameworks are considered as TQM models important in case of TQM implementation however,
and establish elements of leadership, strategic planning, results in this study did not support its significance for
process management, customer focus, workforce focus OP, as was also observed in the work by Aarts and Vos
practices and information management. [12].
Today the global competition has impacted the pace of 2. LITERATURE REVIEW
organizational strategies and operations, so in attaining
long term OP the organizations are needful to cope with 2.1 Total Quality Management
technology challenges [6]. Literature suggests TQM is
Quality management has been extended to a specialized
less concerned with technology and is considered as
field, as TQM, which covers both philosophical and
barely administrative or managerial function [7]. In fact,
applied aspects of quality. TQM has been defined in many
various studies have been carried out to observe any
relationship or association of TQM practices and ways. It has been defined as “a system approach to
performance measures [8]. These include identification management that aims to enhance value to customers by
of success factors for TQM program, examination of designing and continually improving organizational
barriers or obstacles in the implementation of TQM in an processes and systems” [13]. It has been also said that
organization and determination of the impact of TQM on “TQM seeks continuous improvement in the quality of
variety of performance factors [2]. But there is little in the all processes, people, products, and services of an
literature that investigates the combined effect of TQM organization”. [14]. TQM is one such philosophy which
and TM on the performance. Rapidly changing markets can help organizations to achieve, maintain and improve
constantly challenge for technological and innovative customer satisfaction [15]. TQM encourages culture of
products in shorter development lifecycles [9]. Therefore, employee involvement that aims for high quality and
TM has become vital in the dimensions of product and customer satisfaction to achieve long-term success to
process advancement. The study on the integration of give benefit to all stakeholders.
TQM and TM becomes important in linkage to firm’s
TQM represents three main aspects; one is the meeting
performance [10].
or exceeding customer satisfaction, the second is the
This paper is a research study of the relationship of continuous improvement of quality and the third training
TQM, TM and OP. A research survey is conducted and and involvement of all employees [16]. Continuous
questionnaire is administered to different fields of improvement, breakthrough and standardization using
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Impact of TQM and Technology Management on Organizational Performance
TQM play a key role as impact procedure to increase 2.2 Technology Management
competitiveness [17]. TQM as a CQI approach leads to
organizational growth and competitiveness [18]. “Technology refers to the theoretical and practical
knowledge, skills, and artifacts that can be used to
Although various theoretical and practical TQM develop products and services as well as their
frameworks have been developed by different production and delivery systems” [26]. Adopting and
researchers and authors yet there is no firm agreement applying new technologies indicates that there are wider
on TQM factors [19]. Because of the diversity of the
issues that have to be considered and needed to
definition and approaches taken by different researchers
recognize and address in order to circumvent the
different sets of TQM factors have been suggested and
problems or challenges [27]. TM has been widely defined
adopted in different studies [20]. Many researchers have
as “a process, which includes planning, directing, control
used elements of quality award criteria and business
and coordination of the development and
excellence models as their preferred TQM factors in their
implementation of technological capabilities to shape
studies in attempt to bridge these disparities. It has been
and accomplish the strategic and operational objectives
presented that quality award models derive a model for
TQM [21]. In recent years, researches have begun for of an organization” [28].
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Impact of TQM and Technology Management on Organizational Performance
[36] deliberated two types of technological innovation – too generic. Aarts and Vos [12] did not find impact of
product and process. Product innovation is the capability ISO-9001 on OP.
to create new products or to upgrade existing products
to achieve customer satisfaction or to attain competitive Mangula [43] has highlighted various other benefits of
advantage. High performance organizations always strive ISO certification including expansion of business relations
to grasp new opportunities and make products of high and entrance to new or international market due to
quality in short product development time to meet the increased chances to win new work contacts. These
needs of the customers. Process innovation is referred as benefits give rise to induce promptness in operational
the capability to deploy efficient methods that create value methodologies to meet customer demands in less time.
in the supply chain from arrangement of raw materials to The author stressed that quality becomes an influential
delivery of products. High performance organizations tend factor through ISO certification that positively affect
to acquire, enhance and utilize new knowledge and skills performance, competitiveness and profitability.
efficiently in operations to gain success. Becker and Egger
[37] ascertained the influence of both modes of innovation 2.4 Organization Performance
to raise a firm’s propensity to export.
OP can be referred to the attainment of actual results by
IT (Information Technology) is another dimension of an organization against its intended targets. There could
technology which has gained its importance in OP. Nair be various dimensions for indicating OP and number of
[38] affirmed the influence of IT on financial and non- studies has been carried out to investigate and discuss
financial performance of the organization. However, the different indicators or parameters of OP. Barros, et. al. [8]
current study takes only 2D (Two Dimensions) of has summarized the works of different authors and has
technology; product and process technology. Since IT is suggested product quality, operational performance,
an embedded aspect of process technology and TQM employee satisfaction, customer satisfaction, market and
dimension of information management. financial performance as some of explicit OP indicators.
Zakuan, et. al. [3] measured OP through two levels of
2.3 ISO-9000 Certification satisfaction (customer satisfaction and employee
The certification to ISO-9000 program has been widely satisfaction) and through business results (including
spread in practice and discussion on its benefits and productivity, profitability and cost performance).
barriers has gained popularity in research too [39]. ISO-
In this study five dimensions of OP have been taken that
9000 focuses on conformance and internal process
include product quality, customer satisfaction, operational
improvement in an organization [40]. Various scholars
efficiency, employee performance and business results.
have been arguing on the significant impact of ISO-
9001 on the OP. There is evidence which suggests that 3. TQM, TM AND OP
organizations can bring internal improvements, or that
ISO-9001 certification is helpful in maintaining or TQM and technology are becoming ever growing
increasing market share [41]. Some authors have essential features of organizational strategy for many
recognized and confirmed that ISO-9001 certification is leading organizations across the world. Many companies
important in gaining market access [42]. Some has argued are adapting TQM and TM for sustaining
that the standard does not bring improvement as it is competitiveness in the global market [44].
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Impact of TQM and Technology Management on Organizational Performance
There are several studies which have been carried out to workforce focus, and information management. The 2D
determine the linkages or predictive correlations between of TM are product technology and process technology,
TQM elements or factors and performance measures [8]. and the 5D of OP are product quality, customer
The studies include research works to identify critical satisfaction, operational efficiency, employee
success factors for TQM implementation, to examine performance, and business results. Each dimension
barriers or obstacles in path to TQM program and to comprises different number of items.
identify the relationships and effects of TQM on
performance measures [2]. But no much work in literature 4.2 Research Design
is available that examines the combined and interrelated
The research study was carried out through development
effect of TQM and TM on the certain parameters or factors
and distribution of a questionnaire. The questionnaire
of OP.
contained four sections. The first section of the
Perera and Kuruppuarachchi [45] carried out a study, in questionnaire included information regarding
Sri Lanka, to investigate the impact of TQM and TM respondent’s introduction and organizational profile. The
practices on operations performance. Results showed major organizational contextual factors which were
significant relationship of TQM while insignificant included were information about the organizational size,
relationship of TM to operations performance; however, location, sector, nature of operation and ISO-9000
strong interrelationship between TQM and TM was certification status. The second and third section included
observed. Brah and Lim [44] examined the influence of the information on the implementation of TQM and TM
TQM and technology on the performance of logistics practices. While the fourth section contained information
companies and it was determined that high technology on the perceived organizational performance in 5D.
TQM firms perform significantly better than those to with
4.3 Research Survey
low technology firms. Tasleem, et. al. [33] examined the
integrated role of TM and TQM in the perspective of The research survey was conducted through selecting
organizational sustainability. Prajogo and Sohal [10] a random sample of 320 organizations in different
explored the association between TQM, Technology/R&D
provinces and cities of Pakistan. The survey was not
(Research & Development) management and quality and
specific to single kind of industry or sector but was
innovation performance, and suggested the implication
spread across multiple industries and sectors including
to augment TQM in harmony with TM to enhance OP.
private, public, government, production, R&D, service,
engineering, aerospace, defense, healthcare, textile,
4. METHODOLOGY
chemical etc. A set of questionnaire, supplemented with
4.1 Research Framework
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Impact of TQM and Technology Management on Organizational Performance
cover letter and self-addressed, stamp attached, Table 1 shows that the percentage response from
envelope was mailed to management personnel who were engineering and manufacturing industry is 24.4%, from
relevant and familiar with the field. The survey private sector is 52.3%, from large organizations is 47.7%,
participants were mainly from the operations departments and from Punjab province is 48.8%. It can also be noticed
including manufacturing, production planning, quality that 73.9% of the respondent organizations are ISO-9001
control, maintenance, human resource and sales and certified.
marketing. The promptness on the response was also
5. RESULTS AND ANALYSIS
alerted and requested through emails and telephone
calls. After discarding ten incomplete survey forms and 5.1 Descriptive Statistics
four for extreme outliers, the survey yielded 86 usable
responses, or a 26.9% effective response rate. Such The received responses were statistically analyzed with
response rate is acceptable as greater than the suggested multiple techniques and graphs by use of Minitab software
cut off of 20% [46]. The received responses were then and SPSS (Statistical Package for the Social Science). Table
categorized in percentages, in Table 1, according to type 2 depicts number of items for each dimension and shows
of industry, type of operation, size, location (province) some descriptive statistics including mean, SEM
and status of ISO-9001 certification. (Standard Error Mean), and SD (Standard Deviation). It
Nature of Operation
Production 45.4 Service 41.8 R&D 12.8
Size
Large 47.7 Medium 38.4 Small 13.9
Location
Capital 24.4 Sind 15.1 Balochistan 2.3
Punjab 48 . 8 K.P.K 9.4
Length of Establishment (Years)
<5 7.0 11- 15 20.9 26- 50 19.8
6- 10 10.4 1 6- 2 5 23.3 >50 18.6
ISO- 9001 Certification
Yes 70.9 No 29.1
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Impact of TQM and Technology Management on Organizational Performance
can be observed that the highest mean value is obtained organizations employing ISO certifications are ahead in
in case of leadership which is 3.99, and the lowest mean TQM implementation to those of non-certified. The
value is for product technology which is 3.65. SEM and finding showing the impact of ISO-9001 certification in
SD values does not depict noticeable dispersion of data TQM program does also support the literature. Therefore,
and indicates uniformity of the sample. organizations, in Pakistan too, are enjoying the benefit of
ISO-9001 for the better implementation of TQM. However,
5.2 Analysis of Variance the results did not show significant influence of ISO
certification on OP, as also observed by Aarts and Vos
The difference of means of different organizational
[12]. TQM and TM practices, and the OP, have been
contextual factors with respect to TQM, TM and OP are
observed significantly better in private sector
observed through ANOVA (Analysis of Variances)
organizations as compared to government or other sector
technique. Results pertaining to DoF (Degree of
organizations. This finding also supports the general
Freedom), F statistic, coefficient of determination R-sq,
perception of the working style of private and government
R-sq (adjusted) and observed p-value are presented in
sectors in Pakistan.
Table 3.
5.3 Reliability and Validity
No organizational contextual factor determined as
significant except ISO-9001 certification for TQM and type Reliability is referred as the ability of an instrument to
of ‘sector’ for each construct. The significance of the provide consistent results in repeated uses [47].
result pertaining to ISO-9001 certification and ‘sector’ on Cronbach’s alpha is a statistic that is used to test reliability
TQM is also evident from Fig. 2. The mean scores of of questionnaire across various items [48]. The alpha
TQM for ISO certified and private sector organizations value ranges from 0-1 where the higher value depicts
are higher than to its counterparts. It can be stated that higher level of internal consistency [49]. Value of 0.7 is a
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Impact of TQM and Technology Management on Organizational Performance
common benchmark and can be used to imply that the 5.4 Factor Analysis
items measure the same construct [50]. Table 3 depicts
that all values are achieved greater than 0.7 thus ensures Factor analysis is conducted separately on each factor in
the consistency of items. order to find that a factor can only be valid if all the items
of that factor form a single variable with Eigen value greater
Validity identifies how well individual items measure the
same scale [11]. The items of main dimensions were mainly
derived from literature review and MBNQA criteria. The
content validity of the questionnaire was assured through
peer review and review feedback from the consultants
and professionals of the field. Construct validity is assured
by the application of factor analysis conducted separately
on each dimension of main constructs. It is determined
that the set of items in each factor are composing or
forming a single factor within that factor with Eigen value
greater than 1. FIG. 2. MAIN EFFECT PLOT FOR TQM WITH RESPECT TO
‘SECTOR TYPE’ AND ‘ISO CERTIFICATION’
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Impact of TQM and Technology Management on Organizational Performance
than 1 [51]. The corresponding ‘Eigen values’ and ‘% of mean values of OP with increase in mean values of TQM
variation’ are measured and presented in Table 4. All Eigen and TM.
values are observed greater than 1, while ‘% of variance’
for each factor is observed satisfactory except for 6.2 Regression Analysis
‘customer focus’ which is less than 50% in this case.
Regression Analysis generates an equation to describe
However the corresponding Cronbach’s alpha and Eigen
the statistical relationship between one or more predictors
values are acceptable All KMO (Kaiser-Meyer-Oklin)
and the response variable and to predict new
values observed greater than 0.7 for each factor which
observations. Regression results indicate the direction,
describes that sampling adequacy is good. KMO value size, and statistical significance of the relationship
greater than 0.5 has been recommended as acceptable between a predictor and response. Linear regression is
[52]. Chi-square (2) values, as calculated from SPSS, observed as a composite relationship among the three
attest the significance to achieve Bartlett’s test of variables of the study.
sphericity in the study.
Linear regression analysis of individual dimensions of
6. RELATIONSHIP OF TQM, TM AND OP TQM and TM is performed and it is determined that
relationship of both independent variables is significant
6.1 Correlation Plot (p-values) with dependant variable (OP). However,
relationship of two individual TQM dimensions; ‘strategic
The important aspect of the analysis was to determine planning’ and ‘information management’, is insignificant
the relationship of the dependant (OP) and independent while it is negative in case of ‘information management’.
variables (TQM and TM). All correlation values of the Table 5 shows regression statistics of the individual
dimensions of main constructs were observed significant. dimensions of TQM, TM and of the composite model of
Fig. 3 is a correlation plot that indicates positive trend of both with OP.
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Impact of TQM and Technology Management on Organizational Performance
Model
(Constant) 0.307 0.195 1.573 0.120 0.914 0.832 211.632 0.000
TQM 0.501 0.099 0.459 5.044 0.000
TM 0.422 0.079 0.486 5.347 0.000
Dependant Variable: OP
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Impact of TQM and Technology Management on Organizational Performance
(v) There is positive and strong relationship observed significant. The results showed that
observed between OP, TQM and TM through organizations from private sector are significantly better
correlation plots and regression statistics. in implementing TQM and TM practices and in OP in
comparison to organizations from government and public
(vi) Regression results (Table 5) shows that TQM, sector. These results also support the general perception
TM and OP are strongly associated and their about the comparatively less performance and TQM
combined link as a regression model predicts a approach of government and public sectors in Pakistan.
good fit against observed statistics (R, adjusted The results showed that there is a positive association
R-square, F and P-values). The regression between TQM and TM practices and OP. The linear
statistics for individual TQM and TM dimensions regression analysis predicted good model fits for TQM
have been separately calculated which also show and TM, both as combined or separate, with OP.
that both TQM and TM predict good regression
model fit for OP. However, there is insignificant The study exhibits important contribution to research
representation of two individual TQM literature since it draws attention to the integration of
both management and technological aspects and attempts
dimensions, including ‘strategic planning’ and
to explore and determines their impact on OP. The focused
‘information management’ with Sig. values as
aspects and results of the study can augment management
0.727 and 0.366 respectively.
practitioners and academicians to explore and gain future
7. CONCLUSIONS course of implementation strategy in challenging business
environment.
The quality management field has been extended as TQM
and various studies revealed the importance of TQM for ACKNOWLEDGMENTS
the success of the organizations. The main elements of
Authors are extremely thankful to all who objectively
TQM are continual improvement, employee involvement, reviewed and contributed to complete this research work.
leadership and customer satisfaction. Studies have been Authors also pay special gratitude to Dr. Asim Nisar,
carried out to find the relationship of organizational Centre of Excellence in Sciences & Applied Technologies,
contextual factors including ISO-9001 certification on Islamabad, Pakistan, for providing valuable feedback and
TQM and OP. Product, customer, employee, financial and motivation for the study.
market results are indicators for OP. However, the
organizations have to cope with the global pace of
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