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TQM AND KNOWLEDGE MANAGEMENT IMPACTS ON SME PERFORMANCE

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The purpose of this study is to examine the impact of Total quality management, Knowledge management and business performance of small and medium enterprises in Nigeria. SMEs are important to the economic growth of Nigeria, they are the major source of employment, innovation, poverty alleviation as well as the improvement of living standards. The study employed cross sectional research design, using structured questionnaire survey with a sample of 640 SMEs fully operational in Kano state, a total of 511 valid questionnaires were completed and returned representing 79.8 percent response rate. The finding from the study shows that the relationship between TQM, KM and business performance was found to be significant. The finding of this study will benefit owner/managers of SMEs, regulatory agencies, government at all levels and will also serve as a frame to future studies. Research limitations and direction for future studies discussed.
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23 IPBJ Vol. 6 (2), 23-43 (2014)
TQM AND KNOWLEDGE MANAGEMENT
IMPACTS ON SME PERFORMANCE
RUBINA JABEEN1, ALIYU MUKHTAR SHEHU2
1/2Othmam Yeop Abdullah Graduate School of Business,
Universiti Utara Malaysia
ROSLI MAHMOOD3
3School of Business Management, College of Business,
Universiti Utara Malaysia
BALA ADO KOFAR MATA4
4Department of Business Administration and Entrepreneurship,
Bayero University
ABSTRACT
The purpose of this study is to examine the impact of Total quality management,
Knowledge management and business performance of small and medium
enterprises in Nigeria. SMEs are important to the economic growth of Nigeria,
they are the major source of employment, innovation, poverty alleviation as well
as the improvement of living standards. The study employed cross sectional
research design, using structured questionnaire survey with a sample of 640
SMEs fully operational in Kano state, a total of 511 valid questionnaires were
completed and returned representing 79.8 percent response rate. The nding
from the study shows that the relationship between TQM, KM and business
performance was found to be signicant. The nding of this study will benet
owner/managers of SMEs, regulatory agencies, government at all levels and
will also serve as a frame to future studies. Research limitations and direction
for future studies discussed.
Keywords: Total Quality Management, Knowledge Management, Business
Performance, SMEs.
INTRODUCTION
In today’s dynamic competitive and rapidly changing economic
environment, rm’s aention is increasingly focused on how to manage
their tangible and intangible assets and resources to enhance their
performance and create competitive edge. Total quality management
24 IPBJ Vol. 6 (2), 23-43 (2014)
(TQM) and knowledge management (KM) are considered as
important organizational resources and capabilities used to increase
competitiveness and higher performance. On the one hand, TQM is one
of the important factor that can inuence rm’s performance, while on the
other hand knowledge management has been recognized as an enabler
that contribute to higher performance by creating, storing, transferring
and applying knowledge. Thus it is appropriate to say that both TQM
and KM have similar aims and objectives that is of gaining competitive
advantage and improved performance (Waddell & Stewart, 2008).
According to resource-based view, strategic capabilities are a pool of
internal resources that create competitive advantages (Barney, 1991).
So, these unimitated and unique combination of resources within a
rm have potential to enhance rm’s performance and create sustained
competitive advantages (Barney, 1995; Miller & Shamsie, 1996). In the
view of the resource-based view of the rm (RBV), TQM and KM can be
viewed as important strategic capabilities and organizational intangible
resources. In this empirical study TQM and KM as key strategies have
been associated together and it is expected that the synergy of these two
dierent management approaches will improve the eectiveness and
performance of the rm. However, each strategy is often studied as a
separate discipline in the literature.
LITERATURE REVIEW
Business performance
Generally business performance refers to meeting the rm’s objective or
the success of the business. According to Alchian and Demse (1972)
business performance of a rm can be dened as “the comparison of
the value created by a rm with the value owners expected to receive
from the rm”. On the other hand, Flapper, Fortuin and Stoop (1996)
performance is “the way organization carries its objectives into eect”.
According to (Daft, 2000) business performance is the rm’s ability and
capacity to achieve organizational objectives. Previous studies have
widely investigated how to improve business performance and dierent
predictors and factors of rm performance. In the literature dierent
performance measures such as nancial or non nancial or subjective
measures have been used to measure the business performance of a rm.
In the present challenging dynamic business environment, the
competition has been signicantly increasing in quantity and quality
of products and services. The main purpose of any rm is to provide
IPBJ Vol. 6 (2), 23-43 (2014) 25
customers with products and services that meet and satisfy their needs
and wants (Al-Marri et al., 2007). In the eld of organizational studies and
strategic management literature, performance is considered as one of the
most important constructs (Combs, Crook & Shook, 2005). Therefore,
researchers have conducted considerable amount of research work on
rm’s performance seeking to understand the factors, processes, and
other antecedents that can increase the rm’s outcomes (Jing & Avery,
2008). According to Rogers and Wright (1998); March and Suon (1997)
business performance of a rm has widely been studied as a dependent
variable in organizational research studies.
Total quality management (TQM)
Total Quality Management (TQM) is a management strategy which is
gaining an increasing aention and interest by many researchers (Ehigie
& McAndrew, 2005). TQM is considered as a critical determinant of
the success and survival and a source of competitive advantage of both
manufacturing and service organizations (Douglas & Judge, 2001).
According to Juran (1995) in the global challenging business environment
the signicance of TQM implementation can full the needs and demand
of customers by providing them with quality products and services. In a
similar context, Williams, Wiele, Iwaardeen and Visser (2004) examined
that TQM is one of the main factor in the creation of sustainable
competitive advantage. Total quality management (TQM) is a holistic
approach to continuously improving the quality of products and
services through the involvement of all the stakeholders at all levels and
functions of an organisation (Pfau, 1989). According to Yusuf et al., (2007)
TQM is business management philosophy for the whole organization
to maximize customer satisfaction, gain beer product quality, and to
obtain higher productivity through the systematic removal of waste and
the reduction of non-productive activities.
Knowledge management
Knowledge is debatably as the asset most directly relate to overall
organizational performance (Assudani, 2005; Drucker, 1993). An
increasing body of literature also advocates that in highly dynamic
environments, increased organizational knowledge can reduce risks and
uncertainties (Liebeskind, 1996; Collins, Worthington, Reyes & Romero,
2010). Thus, rms capable of acquiring, storing, utilizing, and integrating
newly discovered knowledge add to their existing knowledge stock
(Ketchen, Snow & Street, 2004). Combining the rm’s current knowledge
resource-stock with newly acquired knowledge-stock can lead to the
26 IPBJ Vol. 6 (2), 23-43 (2014)
creation of new knowledge within the rm (Ketchen et al., 2004) and
the discovery or creation of entrepreneurial opportunities (Zahra, 2008).
While knowledge is a vital resource for any rm, knowledge management
is the level necessary in transforming resource into capability.
The key for eective knowledge application, comprise one of the primary
avenues through which rms eectively utilize their knowledge-based
resources. These capabilities can be particularly valuable to rms in many
competitive contexts (Makino & Delios, 1996; Reed & DeFillippi, 1990).
Firms that have used their knowledge management capability are likely
to succed and survive a myriad of competitive threats in the external
environment (Kogut & Zander, 1993). In particular, eectively managing
the rm’s stocks of knowledge is associated with improved decision
making within the rm (Ling, 2013). In highly competitive industries,
rms need to focus on enhancing their knowledge management
capability to ensure survival. These rms are more likely to integrate
matching resources and achieve superior performance (Harrison et
al., 2001; Ireland et al., 2002). Firms can meet this challenge by actively
managing their knowledge inventories; to do so eectively require that
they focus on building and diusing knowledge. Thus, the development
of knowledge management expertise involves multiplesteps associated
to the acquisition and utilization of knowledge within the rm.
Organizations that actively utilize knowledge management tools can
enhance their ability to create new knowledge within the rm and
achieve superior rm’s performance (Wiltbank et al., 2006).
Total quality management and business performance
In a competitive business environment, businesses need to emphasis
more on quality by geing the information from customers about
their requirements, timely delivery of products and to respond to the
market changes (Martin-Pena & Diaz-Garrido, 2008). According to
Deming (1986) quality is major determinant of success in competitive
environment. Feng et al., (2006) argued that in today’s dynamic market
place, rms must focus on improving quality and innovativeness.
Total quality management is the main factor for gaining sustainable
competitive advantage (Reed et al., 2000). It was also suggested that there
is a relationship between quality and productivity. As quality improves,
there will be less wastage or rework and customer satisfaction will also
be enhanced. Deming (1986) stated that TQM would generate improved
products and services, reduced costs, more satised customers and
employees and improved boom line nancial performance.
IPBJ Vol. 6 (2), 23-43 (2014) 27
Small and medium sized enterprises (SMEs) play a dominant role in
the current global economy and have been considered as the back bone
in most developed and developing countries (Ghobadian & Gallear,
1996). Several researchers such as Fening et al., (2008); Ahire and Golhar
(1996); Bayati and Taghavi (2007) and Temtime and Solomon (2002)
have emphasized that TQM practices can help small and medium sized
enterprises, to be more ecient and more market-focused. Rahman
(2001) explored that most of the literature focused on the implementation
of TQM in large organizations and lile aention has been paid to their
implementation in SMEs. In a similar context, Demirbag et al., (2006)
also noted that there is dearth of literature investigating the relationship
between TQM business performance of SMEs. Moreover, many studies
regarding the implementation of TQM in SMEs were conducted in the
context of developed countries such as US, UK and other European
countries.
Temtime and Solomon (2002) in their study on 52 SMEs in Ethiopia
identied eight critical TQM factors namely; managerial leadership
and commitment; customer satisfaction; continuous improvement;
employees empowerment and involvement; supplier partnership;
quality culture and philosophy; and measurement and feedback. Their
ndings supported that SMEs should adopt TQM for growth and long
term sustainability. Fening, Pesakovic and Amaria (2008) in their aempt
to investigate the relationship between TQM and performance of SMEs
in Ghana, concluded that there are positive signicant relationships
between the seven management practices used in the study namely,
leadership; strategic planning; information and analysis; human resource
management; customer and market focus; quality process management;
and business results and the SMEs business performance. Similarly,
the ndings of empirical study conducted by Salaheldin (2009) on 139
Qatari SMEs revealed that there is a signicant eect of TQM factors on
operational and the organizational performance of SMEs.
Demirbag et al., (2006) examined the relationship between TQM and
performance on 163 SMEs in Turkey and their ndings supported the
existence of strong positive relationship between TQM critical factors
and non-nancial performance of SMEs. Moreover, Lee (2004) carried
out an empirical research on 112 SMEs in China and identied many
diculties in TQM implementation such as the lack of resources, lack
of knowledge, and ineective quality training and poor employee
involvement. However, there has been a consensus among SMEs’ owners
about the importance of TQM for higher business outcomes. In addition,
the ndings of his study showed a positive relationship between TQM
28 IPBJ Vol. 6 (2), 23-43 (2014)
and performance of SMEs. While some studies empirically support that
the successful implementation of TQM can improve performance of rms
(Hendrick & Singhal, 2001; Douglas & Judge, 2001) Kaynak, 2003). On
the contrary, Harari (1993) and Salegna and Fazel (1995) found no aect
of TQM on performance. Similary, McCabe and Wilkinson (1998) and
Yeung and Chan, 1998) found negative relationship amid TQM and the
business performance. In the light of above discussion, it is hypothesized
that,
H1: TQM has a signicant relationship with business performance of
SMEs.
Knowledge management and business performance
Several studies been conducted on knowledge management and
organizational performance, the ndings form the previous studies
appeared to be mixed. Lin and Lee (2005) assessed the inuence of
organizational learning factors and knowledge management process
on e – business adoption. A survey of two hundred and two executives
from Taiwan was used with structural equation modelling for data
analysis. The ndings indicated that organizational learning factors and
KM process are related to the level of e business adoption. However,
knowledge sharing did nit signicantly aects e – business adoption
system level. Choi, Lee and Yoo (2010) examined information technology
and transactive memory system on knowledge sharing, application and
team performance. A sample of one hundred and thirty nine on – going
teams of seven hundred and forty three indiduals from two major rms
in South Korea was employed. The nding indicated that IT support
in organizations has a positive impact on the development of TMS in
teams, and that both TMS and IT support have a positive inuence on
knowledge sharing and knowledge application. Further, knowledge
sharing has a positive impact on on knowledge application, which has
a direct impact on team performance. Additionally, knowledge sharing
does not have impact on team performance, and team performance was
fully mediated by knowledge application. Similarly, the nding of
Arising from these, Jain (2011) reported a perfect negative relationship
between personal knowledge management and organizational KM and
productivity. Wu and Hu (2012) supported the KM to performance
relationships. Klaas, Semadeni, Klinchak and Ward (2012) examined
the impact of high – performance work systems in SMEs based on
leaders capacity to obtain additional human resource knowledge from
an external experts. A sample of two hundred and ninety four small
IPBJ Vol. 6 (2), 23-43 (2014) 29
business organizations was used. Leaders perceptions of HR eectiveness
are positively related to the use of HPWSs, and that the relationship
is moderated both by the communication pateerns between small
business leaders. The study of Yang (2013) investigated how dierent
knowledge management processes of knowledge acquisition and
dissemination aects manufacturer’s performance. Knowledge based
view and transaction cost economics were employed as the theoretical
underpinnings. The ndings from the study reported a signicant and
positive relationship between KM process and performance relationship.
Additionally, Ling (2013) purposively sampled one thousand top
Taiwanese companies, with one hundred and forty six questionnaire
response. The outcome from the study shows that intellectual capital
positively relate to performance, and knowledge management was found
to moderatebetween intellectual capital and organizational performance.
Aiken, Gu and Wang (2013) established that task technology ts mediates
between knowledge sharing and team satisfaction, but no eect found
on team performance. However, Nawaz, Hassan and Shaukat (2014)
argued on the inuence of three knowledge management practice of
knowledge acquisition, dessimination and responsiveness to knowledge
on innovation and rm performance. Data is collected from four hundred
and seven manufacturing organizations listed in Karachi stock exchange.
Correlation and regression analysis were used for data analysis. The
result shows a positive and signicant relationship between the study
variables, innovation was found to partially mediates the association
between knowledge management practices and rm performance. Based
on these argumenets; the following hypothesis formulated:
H2: Knowledge management has a signicant relationship with
business performance of SMEs.
METHODOLOGY
Research Design
This study employed cross sectional research design as the data was
generated in a single point at a given time (Kumar, Abdul Talib &
Ramayah, 2013; Zikmund, Babin, Car & Grin, 2013; Sekaran & Bougie,
2003). The study also adopts quantitative research approach (Sekaran,
Robert & Brain, 2001), which was mostly used in social sciences.
Other previous studies used quantitative research method, Shehu and
Mahmood (2014a), Shehu and Mahmood (2014b); Kheng, June and
Mahmood (2013) and Shukr Bakr and Mahmood (2014)
30 IPBJ Vol. 6 (2), 23-43 (2014)
Population and Sampling Technique
The population of this study covers the entire 1829 SMEs (SMEDAN,
2012) fully operational in Kano – Nigeria. Systematic sampling technique
was adopted to select 320 respondents using Krejice and Morgan (1970)
which was later doubled to 640 as recommended by Hair, Wolnger and
Ortinal (2008); Sekaran et al., (2001).
The unit of analysis for this study is at organizational level which cover
the entire SME owner/managers. A self – administered questionnaire
also called drop- o and pick procedure served as the data collection
method. The present study has a response rate of 79.8 percent, which is
considered adequate (Shehu & Mahmood, 2014c).
Measurement of Constructs
In this study, all variables were measured using the 5- point scale,
ranging from 1 (strongly disagree) to 5 (strongly agree) based on the
previous works of Noor and Muhammad (2005), Awang, Isma’il and
Mansoor (2014). There are three variable in this study, as regard to
business performance, a total of six items adopted from Suliyanto and
Rahab (2012). Total quality management measures were adopted from
Idar and Mahmood with nine items, Knowledge management, fourteen
items adopted from Wang, Hult, Ketechen and Ahmad (2009).
STATISTICAL ANALYSIS AND RESULT
Content validity
Content validity simply refers to an intense in which all the items
designed to measure a given construct should have a high loading in the
construct were designed to measure. Thus, factor loading could be used
to assess the content validity as recommended by Hair, et al., (2010) and
Chin (1998). Table 1 indicated that all the variable signicantly loaded
on their respective constructs and possess a good value of 0.5 and above.
Table 1 Cross – loading of the items
BP TQM KM
BP01 0.740671 0.411315 0.113813
BP02 0.725697 0.365271 0.103346
(Continued)
IPBJ Vol. 6 (2), 23-43 (2014) 31
BP TQM KM
BP05 0.716426 0.356853 0.064999
BP06 0.699282 0.448878 0.044330
TQM01 0.344120 0.695461 0.046025
TQM12 0.434699 0.754461 -0.009246
TQM02 0.426398 0.774398 0.059973
TQM24 0.366208 0.623105 -0.002154
KM03 0.088521 -0.000068 0.812104
KM05 0.085753 0.047025 0.592225
KM07 0.059646 0.023315 0.736443
The convergent validity
Bagozzi, Yi and Philips (1991) and Hair et al., (2010), sees convergent
validity as the extent to which a set of variables meets in measuring the
concept on the construct. The convergent validity can be established,
based on SEM literature, by using items reliability, composite reliability
and the average variance extracted. That is, the item of each construct are
highly loaded and statistically signicant in measuring their respective
constructs (Bagozzi, et al., 1991; Hair, et al., 2010). Table 2, shows that the
average variance extracted values are more than 0.5 and the composite
reliability values of the constructs exceeded the recommended value of
0.7, it can be conrmed that the measurement model has an adequate
level of convergent validity.
Table 2 Convergent validity analysis
Constructs Items Loading Cronbach’s
Alpha
Composite
Reliability
AVE
Business
performance
BP01 0.740 0.692 0.812 0.519
BP02 0.725
BP05 0.716
BP06 0.699
TQM Tqm01 0.695 0.677 0.805 0.510
Tqm12 0.754
Tqm02 0.774
Tqm24 0.623
Knowledge
management
KM03 0.812 0.626 0.759 0.517
KM05 0.592
KM07 0.736
32 IPBJ Vol. 6 (2), 23-43 (2014)
The discriminant validity
Discriminant validity is considered to be the degree to which a set of items
dier from one construct to other construct. In examining discriminant
validity of the measurement model, the Fornell and Lacker (1981) criteria
was used. Table 3. Indicate the correlation matrix in which the diagonal
element represent the square root of the average variance extracted of
the latent constructs. The result of the correlation matrix indicated in the
table below ensures that the discriminant validity is conrmed.
Table 3 Correlation matrix of the variables
Variable BP TQM KM
1Business performance 0.72
2Total quality management 0.553 0.714
3Knowledge management 0.325 0.252 0.719
The measurement and hypothesized model
TQM1
0.000
TQM12
TQM2
TQM24
0.695
0.754
0.774
0.623
Busp
0.316
KM03
KM05
KM09
BP1
BP2
BP5
BP6
Busp
0.000
0.551
0.812
0.592
0.736 Kmgt
0.741
0.726
0.716
0.699
0.095
IPBJ Vol. 6 (2), 23-43 (2014) 33
Table 5 Hypotheses testing
Path
Coecient
Std. Error T Value P Value Decision
TQM <- Busp 0.550641 0.036867 14.935 0.000 Supported
Kmgt -> Busp 0.094624 0.041081 2.303 0.022 Supported
DISCUSSION AND RESEARCH IMPLICATIONS
This study examined the impact of total quality management and
knowledge management on small and medium enterprises performance
in Nigeria. The study found support for the direct relation between TQM
and business performance. This result was consistent with previous
study by Lee (2003); Joiner (2007); Salahdin (2009); Malik et al., (2010);
Volmohammadi (2011) and Yunis, Jung and Chen (2013). However, the
relationship between knowledge management and business performance
was also supported. This nding is in line with the previous study by Lin
(2005); Wu and Hu (2012); Choi, Lee and Yoo (2010); Yang (2013) and
TQM1
TQM12
TQM2
TQM24
16.268
26.817
27.870
15.604
Busp
KM03
KM05
KM09
BP1
BP2
BP5
BP6
Busp
14.936
3.815
2.306
3.007 Kmgt
25.152
24.439
19.647
23.821
2.303
34 IPBJ Vol. 6 (2), 23-43 (2014)
Ling (2013). The signicance of TQM and knowledge management (KM)
and their contribution to rm’s performance is increasingly gaining
recognition worldwide.
Summers (2006) explored that TQM tends to improve the quality of
products, beer use of resources, decrease in cost, fewer number of
mistakes, reduced delays in production and delivery. This in turn
enables a rm to acquire more market share and boost the performance
which guarantees its continuous stay in business and provision of
more jobs. Likewise, KM practices are important drivers of business
performance as it plays a key role not only inuencing and directing the
conduct of routine business operations, but also provides a foundation
for long-term business success (Sinkovics & Roath, 2004). The ndings
of this research provides an in depth understanding for the academia
and researchers regarding implementation of TQM and KM in SMEs for
higher performance. The results of this study will give a guide map for
the policy makers and practitioners to devise those policies which can
help and support the current and future entrepreneurs. The theoretical
implication can be that the study extends the existing body of knowledge
by examining TQM and Knowledge management relationship to business
performance of SMEs. It has also tested and validated the instrument
that were developed by previous researchers and validated in US and
European context.
LIMITATION AND FUTURE RESEARCH
This study is limited only to those SMEs operating in Kano, north western
part of Nigeria. A cross – sectional research design was employed, which
collect data only ones. Future studies may consider other countries.
The study recommends the use of moderating and mediating variables
between the TQM, KM and business performance. A longitudinal study
is suggested, that may allow data collection activity over a long period
of time. The use of other statistical packages could be used in examining
this model in the future.
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... Studies have shown that top management commitment to TQM practices leads to a more collaborative and participatory organisational culture, where employees are encouraged to get involved in decision-making and to take ownership of their work (Ahire & O'shaughnessy, 1998;Al-Swidi & Mahmood, 2012;Jabeen et al., 2014;Joiner, 2007;Macinati, 2008;Parast & Adams, 2012;Phan et al., 2011;Powell, 1995;Prajogo & Sohal, 2006;. This creates a more engaged and motivated workforce, which, in turn, contributes to better organisational performance and excellence. ...
... A strong focus on customer needs and expectations within Total Quality Management (TQM) practices leads to significant improvements in organisational performance across various key performance indicators, including operational performance, inventory management performance, employee performance, innovation performance, customer satisfaction, sales, and overall firm performance. This is supported by numerous studies (Ahire & O'shaughnessy, 1998;Al-Swidi & Mahmood, 2012;Granerud & Rocha, 2011;Jabeen et al., 2014;Joiner, 2007;Phan et al., 2011;Zehir et al., 2012). By focusing on meeting the needs and expectations of customers through TQM practices, organisations are able to improve the quality and reliability of their products and services, increase efficiency and productivity, and ultimately drive customer satisfaction, sales, and overall firm performance. ...
... Empowering employees to engage in quality efforts and fostering a sense of ownership leads to better results, as employees take a vested interest in improving products/services and processes. Research has shown that effective people management positively impacts organisational performance, including operational performance, supply management performance, social responsibility and customer results, financial performance, and overall firm performance (Ahire & O'shaughnessy, 1998;Jabeen et al., 2014;Macinati, 2008;Parast & Adams, 2012;Sadikoglu & Olcay, 2014;. ...
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This study examines the impact of Total Quality Management (TQM) practices on organizational outcomes. Results show a significant relationship between TQM practices such as top executive commitment, education and teaching, process control, and continuous progress, and how they can be leveraged to enhance performance outcomes.
... According to additional researchers, for example, Narver, & Slater, (1990), market orientation has three dimensions: "competitor orientation, customer orientation, and internal functional coordination". However, both market orientation approaches share a common objective, which means that customers remain the primary focus of market orientation thinking and explanations of firm behavior (Acosta, et al., 2018;Shehu & Mahmood, 2014;Vieira, 2010). Numerous market-oriented studies have concluded that market-oriented culture is a significant predictor of improved business performance because it places a premium on customer needs, whereas the market-oriented business strives to improve customer satisfaction, thereby increasing firm performance (Ali, et al., 2017;Olabode, et al., 2018;Morgan, et al., 2019). ...
... To continue to fulfill their roles in an age of constantly changing technology and markets, they can be flexible, diversified, and inventive (Sahoo & Yadav, 2017;Vazquez et al., 1998). Previous empirical studies have shown that product innovation is one of the strategic priorities that have a positive and significant impact on the relationship between market orientation and firm performance (Sahoo & Yadav,2017;Buli, 2017;Sciascia, et al., 2014;Shehu & Mahmood, 2014;Boso et al., 2013;Kraus, et al., 2012). On the other hand, some authors found that product innovation has a negative effect on the relationship between market orientation and firm performance (Arunachalan, et al., 2013;Andersen, 2010;Naldi, et al., 2007). ...
... More so, marketing ethics acts as a moderator in the relationship between market orientation and SME performance in order to strengthen the connection between the variables of interest. The framework depicted in Figure 1 is consistent with previous scholars' recommendations (e.g., Ali, et al., 2020;Jabeen et al., 2014;Shehu & Mahmood, 2014;Raju et al., 2011;Baron & Kenney, 1986). Product innovation, as a mediating variable, can be used to determine the effectiveness of a business's performance. ...
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In the contemporary business environment, market orientation has become a widely discussed topic in the business community and academics. Since the market environment has become more competitive, developing and improving one's internal resources is now an absolute necessity. Despite the influence these topics have on the performance of microenterprises, a significant number of market orientation studies haven't empirically connected them. According to this perspective, this study established a theoretical link between market orientation and SME performance via a literature review. Additionally, a new framework for experimental evidence was developed. This study makes significant contributions to the understanding of the relationship between market orientation and SME performance but also sheds light on the critical role of product innovation as a mediator. Furthermore, the conceptual model explains the impact of marketing ethics as a moderator on small- and medium-sized enterprise (SMEs) performance.
... For the first time, this study examines how TQM affects company sustainability (CS) in Saudi Arabian pharmaceutical enterprises through KM, highlighting the importance of KM in this sector. There have been numerous studies in this area; for instance, Jabeen et al. (2014) presented their research on the benefits of TQM and KM on the performance of SMEs' businesses. The vital part that knowledge management methods play in achieving sustainability in businesses was presented by Abbas & Sagsan in 2019. ...
... The current research findings are supported by a number of investigations. For instance, Jabeen et al. (2014) highlighted the benefits of TQM and KM on the operational efficiency of SMEs. More recently, it was discovered (Abbas & Sagsan, 2019;karim et al., 2022;Qin et al., 2022) that KM techniques and TQM play critical roles in the "sustainability" of enterprises. ...
Article
Full-text available
One of the most difficult problems in successful organizations is company sustainability, which is constantly one of the key worries of top managers. Total quality management (TQM), in particular, is regarded as one of the most crucial measures of sustainability, underscoring the significance of quality management in enterprises. Without also putting an emphasis on consumers, leadership, and process management, sustainability cannot fulfill its key sub-parameters—including "economic and social sustainability"—by relying just on the value of "knowledge creation and knowledge sharing". Accordingly, this study aims to examine the effects of TQM through Knowledge management (KM) as a mediator on company sustainability (CS) in various reputable pharmaceutical companies in Saudi Arabia. Data was gathered from managers, supervisors, and deputies of different departments from various organizational levels through a questionnaire. Applications of the software SPSS were used to analyze the data. The findings of this study verify KM and its sub-variables, including "knowledge creation and sharing" in addition to showing the beneficial benefits of TQM on businesses' sustainability. Additionally, they confirm that "knowledge creation and knowledge sharing" in organizations have a mediating role in the effects of TQM on the CS.
... Other tenets such as training, culture, strategies, and policies can be regarded as the major facilitators of knowledge management practices in SMEs (Daud and Yusoff, 2010;Byukusenge et al. 2016;Valdez-Juarez et al. 2016). Knowledge management has been regarded as a driver of competitive advantage and SME performance (Jabeen et al. 2014;Ngah and Ibrahim, 2010). Mainly, knowledge management encompasses knowledge creation, sharing, and utilization. ...
... It moderates these relationships using the owner/manager's education level, and business experience respectively. The study considers the owners/managers as respondents representing their SMEs, and adopted large samples based on Jabeen et al. (2014), Byukusenge et al. (2016), Valdez-Juarez et al. (2016), Daud and Yusoff (2010), and Ngah and Ibrahim (2010). This study also involved stratified sampling based on Valdez-Juarez et al. (2016), and simple random sampling that was also adopted by Byukusenge et al. (2016). ...
Article
Small and Medium-sized Enterprises around the globe have for years been struggling to realize competitiveness. Literature proposes knowledge management as one of the drivers of their performance. However, most of these SMEs still face challenges in ascertaining the right knowledge management strategies that would influence their performance and competitiveness. The study seeks to find the contribution of knowledge management strategies on SME performance. It intends to draw lessons from the operations and practices of small and mediumsized bakeries in Tanzania. It has adopted a mixed research methods, and a multi-stage sampling technique and ultimately received responses from 161 questionnaires, and 20 in depth interviews from bakery owners/managers throughout Tanzania. By employing a moderator analysis which is preceded by principal component analysis, and the qualitative content analysis (manifest analysis), the study is able to establish that both the owner/manager’s education, and business experience, moderate the relationship between knowledge management strategies and SME performance. This study’s argument lies in the fact that the knowledge management practices need to be enhanced in order to drive SME competitiveness. The study also argues that the initiatives to enhance these practices need the support of all relevant players in SME development, including the policy development practitioners from both public and private sectors.
... Empirical studies on the relationship between TQM and organization performance reveals that the extent of TQM practices in organizations specifically in SMEs justifies a positive relationship within the two variables assuring that TQM implementation in SMEs considerably improves product quality and business sustenance (Hilman et al. 2020;Kutnjak et al. 2019). Herzallah et al. (2014) from their study on Palestinian SMEs stated the significant influence of implementing quality management practices on organization performance which invariably enables SMEs to survive competition with larger firms to retain business continuity that is consistent with studies done by Mahmud & Hilmi 2014;Jabeen et al. 2014;Imran et al. 2018. ...
... Despite differences existing in the level of implementation and the challenges TQM exhibit in SMEs, certain TQM characteristics such as effective communication, teamwork, employee awareness when implemented effectively would lead to positive results owing to the integrated nature of the business network in smaller firms (Ghobadian & Gallear 1996). Confirming the perception, empirical evidence through literature however support the relationship of TQM implementation with organizational sustainability especially in SMEs perceived through studies from Hilman et al. (2020); Imran et al. (2018) that TQM implementation can increase export performance in SMEs, bringing significant improvement in business performance (Jabeen et al. 2014), further confirming to Sahoo and Yadav (2018). Besides, wide studies are done by Beheshti & Lollar (2003); Chileshe & Watson (2003) with relation to TQM implementation in SMEs in different geographical settings in the US, UK to understand the performance of these firms from adopting TQM. ...
... Other tenets such as training, culture, strategies, and policies can be regarded as the major facilitators of knowledge management practices in SMEs (Daud and Yusoff, 2010;Byukusenge et al. 2016;Valdez-Juarez et al. 2016). Knowledge management has been regarded as a driver of competitive advantage and SME performance (Jabeen et al. 2014;Ngah and Ibrahim, 2010). Mainly, knowledge management encompasses knowledge creation, sharing, and utilization. ...
... It moderates these relationships using the owner/manager's education level, and business experience respectively. The study considers the owners/managers as respondents representing their SMEs, and adopted large samples based on Jabeen et al. (2014), Byukusenge et al. (2016), Valdez-Juarez et al. (2016), Daud and Yusoff (2010), and Ngah and Ibrahim (2010). This study also involved stratified sampling based on Valdez-Juarez et al. (2016), and simple random sampling that was also adopted by Byukusenge et al. (2016). ...
... TQM refers to the study of ways to boost quality all through an organization. To date, there have been a plethora of attempts to put a numerical value on TQM (Das et al., 2020;Hassan and Kerr, 2003;Higgins et al., 2015;Jabeen et al., 2014;Kaur and Sharma, 2014;Kutnjak et al., 2019). TQM's overarching objective is to maximize customer satisfaction by providing them with a product or service that meets or exceeds their expectations and requests in a costeffective manner (Kise l akov a et al., 2020). ...
Article
Practitioners and academics have recently put a lot of emphasis on studying and improving how likely an organization will be successful in the long run. A company's capacity to thrive, excel and gain a competitive edge in today's market is increasingly dependent on the company's ability to adopt and successfully execute sustainable practices. The aim of this paper is to take a critical look at the relationship between total quality management (TQM) practices and business sustainability in the hospitality industry, with a focus on the hospitality sector; to evaluate the role of perceived organizational support (POS) and sustainable behavior in promoting long-term success and to make some suggestions for how these practices could be put into place. Design/methodology/approach The data used were randomly collected from 361 hotel employees, covering both the five-star and four-star hotels. Descriptive and inferential statistics were employed to analyze the data. With the use of partial least squares structural equation modeling (PLS-SEM), the heuristic model was tested. Findings The results show that putting TQM practices into place leads to better company performance, higher productivity and steady growth for the business. In addition, empirical studies show that the link between sustainable behavior in TQM implementation and a sustainable company is strong, especially when coming to better governance and sustainability related to employees. Research limitations/implications This paper offers guidelines for gauging employee's opinions of an organization's long-term viability. A two-factor model has been used to measure the sustainability of an organization and possible factors that can aid effective implementation of TQM practices have been suggested. Originality/value There is increasing recognition of the organizational support for successful TQM implementation, while yearning toward sustainability. Within the context of the hospitality industry, no previous research has empirically examined the synergistic moderating effect of POS and sustainable behavior on the relationship between TQM and sustainability.
... There are several studies that support our findings. In 2014, Jabeen et al. presented the positive effects of both TQM and knowledge management on the business performance of SMEs [5]. More recently, the crucial roles of knowledge management practices and TQM in sustainability in organizations were investigated [1,6]. ...
Article
Full-text available
Corporate sustainability is one of the most challenging issues in superior organizations, and is always one of the main concerns of top managers. The importance of quality management in organizations—especially as total quality management—is considered to be one of the most important indicators of sustainability. We cannot achieve sustainability and its important sub-parameters—including economic and social sustainability—by merely employing the value of knowledge creation and knowledge sharing, without also focusing on customers, leadership, and process management. We designed appropriate questionnaires to test this premise, and then distributed and collected them from various reputable pharmaceutical companies in Turkey. We recorded the opinions of managers, supervisors, and deputies of different departments at various organizational levels. To analyze the data, SPSS software—one of the well-known applications in this field—was used. The new regular economy introduces new requirements for newly built public universities or pharmaceutical companies; therefore, their transformation and development are imminent. For example, colleges should comply with the new requirements of economic and social transformation for higher education, innovate their talent training models, and cultivate higher ideological standards and morality while instilling strong practical ability in their graduates to serve society. The results of this study not only illustrate the positive effects of total quality management on firms’ sustainability, but also validate knowledge management and its sub-variables, including knowledge creation and sharing. In addition, they confirm the mediating role of sub-variables, including knowledge creation and knowledge sharing in companies, influencing the effects of total quality management on the sustainability of companies.
... Organisational performance is generally referred to as the extent to which an organisation meets its stated objectives and a wide range of measures exist in the current management literature to assess levels of performance including both financial and non-financial measures (Jabeen et al., 2014). Studies evaluating the impact of TQM on organisational performance highlight a wide range of performance variables including: levels of customer satisfaction (Lin et al., 2005); financial and market results (Sila, 2007); employee satisfaction, morale and loyalty (Jun, Cai and Shin, 2006); and innovation and quality outcomes (Prajogo and Sohal, 2004). ...
Article
Purpose: This paper aims to explore the impact that Total Quality Management (TQM) has on achieving competitive advantage within the engineering, electronics, and information technology (EEIT) sectors in Amman from the perspective of senior managers. Methodology: Following an extensive review of the current literature, and underpinned by a pragmatic theoretical approach, this study adopted a quantitative methodology gathering survey data via an online questionnaire from 154 senior managers across 15 different enterprises operating within the EEIT sectors. Findings: The study indicated that from the perspective of senior managers, across the different sectors, TQM has a positive impact on competitive advantage in relation to reducing waste, increasing efficiency, improving quality and enhancing employee satisfaction which subsequently results in improved financial performance. The findings suggested that across the three sectors, TQM practices were relatively well established, although not many were based on formal TQM models, and that senior managers support key principles of TQM. However, the study also identified a number of perceived structural barriers within the TQM implementation process which impact on competitive advantage including insufficient resources, underdeveloped systems and support structures and a lack of access to appropriate training. Originality: This study makes a valuable contribution to the debate on the strategic value of TQM in delivering competitive advantage and helps to increase understanding of the relationship between the two. Its focus on three different industrial sectors enables diverse views and experiences to be compared and contrasted therefore making a useful addition to the body of evidence within this field.
Article
This study aims to compare the effect of total quality on the performance of workers between national banks and foreign banks. To achieve this goal, a questionnaire was prepared for all employees in the national and foreign banking agencies active in Skikda’s city. The study found statistically significant differences between national banks and foreign banks. In applying the concept of total quality, these differences are in favor of foreign banks. The study found no significant differences on the level of performance of employees but a statistically significant impact of the application of total quality on the performance of employees in both national banks and foreign banks, with a difference in the degree of influence and the power of interpretation between the two variables of the study. تهدف هذه الدراسة إلى مقارنة أثر الجودة الشاملة على أداء العاملين بين البنوك الوطنية والبنوك الأجنبية، ولتحقيق هذا الهدف فقد تم إعداد استبيان موجه إلى جميع العاملين في الوكالات البنكية الوطنية والأجنبية الناشطة بمدينة سكيكدة، وتوصلت الدراسة إلى وجود فروقات ذات دلالة إحصائية بين البنوك الوطنية والبنوك الأجنبية في مدى تطبيقها لمفهوم الجودة الشاملة، جاءت هذه الفروق لصالح البنوك الأجنبية. في حين توصلت الدراسة إلى عدم وجود فروقات ذات دلالة حول مستوى أداء العاملين؛ كما أثبتت وجود أثر ذو دلالة إحصائية لتطبيق الجودة الشاملة على أداء العاملين في كل من البنوك الوطنية والبنوك الأجنبية، مع وجود اختلاف في درجة التأثير وقوة التفسير بين كل من متغيّري الدراسة.
Article
Recent research on total quality management (TQM) has examined the relationships between the practices of quality management and various levels of organizational performance. These studies have produced mixed results, probably because of the nature of the research designs used such as measuring TQM or performance as a single construct. Based on a comprehensive literature review, this study identifies the relationships among TQM practices and examines the direct and indirect effects of these practices on various performance levels. A proposed research model and hypotheses are tested by using cross‐sectional mail survey data collected from firms operating in the US. The test of the structural model supports the proposed hypotheses. The implications of the findings for researchers and practitioners are discussed and further research directions are offered.
Article
This article examines some reasons behind total quality management (TQM) implementation failures and offers a framework for selecting a successful TQM plan. Special attention is paid to the relationships between different TQM tools and techniques and the organizational culture and competitive strategy. The proposed framework is based on the concept of quality function deployment and utilizes a modified house of quality to formulate a TQM plan that is compatible with the organization's culture and objectives. The procedure is further illustrated through an example.
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The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
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Essentials of Marketing Research concisely delivers an up-to-date review of a broad variety of marketing research topics. It takes an application-oriented approach, providing students with the tools and skills necessary to solve business problems and exploit business opportunities. The authors' years of experience in real-world marketing research is evident throughout, from their thorough treatment of qualitative research (given short shrift in many other books) to their knowledgeable coverage of sample size rules-of-thumb, conducting a background literature review, and the importance of new market research tools and techniques. Essentials of Marketing Research gives students a strong command of market research principles, while being short enough to use alongside cases or projects.