Purpose The purpose of the paper is to investigate the effect of TQM principles on organisational performance in Small and Medium Enterprises (SMEs) in Indian Auto Component Sector. Design/methodology/approach The paper is based on survey data collected from quality heads of 120 Auto component SMEs in India and uses correlation and regression analysis to test the relationships between quality management principles and organizational performance. Findings The study provides evidence that application of TQM principles such as ‘Process Approach’, ‘Mutually Beneficial Supplier Relationship’ and ‘Factual Approach to Decision-Making’ has a positive influence on the performance of Indian Auto component SMEs. Practical implications This study presents a number of managerial implications, specifically for quality managers in Indian Auto component SMEs. The focus of these organizations should be on strengthening the supply chain and operations. The quality managers need to align processes and resources based on factual approach to decision making for achieving higher organizational performance. Management of the organizations should also analyse why the soft aspects of TQM namely, Involvement of People, Customer Focus and Leadership are not contributing to the organizational performance in Indian Auto component SMEs. Originality/value This paper identifies the key quality management principles that can influence organizational performance in SMEs in the Indian Auto component sector whereas most existing studies have focussed only on Tier-1 organization in this sector. Unlike previous studies on this subject, the present study highlights the significant impact of predominantly hard factors of TQM such as ‘Process Approach’ and ‘Factual Approach to Decision-Making’ with only one soft factor of TQM namely, ‘Mutually Beneficial Supplier Relationship’ being significant.
Purpose – The purpose of this paper is to examine the impact of Organisational Culture (OC) on total quality management (TQM) implementation in Indian small and medium enterprises (SMEs) in the auto component sector. Specifically; it attempts to propose a model linking OC and TQM for this sector. Design/methodology/approach – Survey method was used for data collection by targeting the whole population of 482 Indian auto component SMEs drawn from Auto Component Manufacturers Association members’ database. Out of 482, 150 completely filled questionnaires were taken for data analysis. Proposed relationships among identified dimensions of OC and TQM interventions have been validated through parameter estimation statistics and goodness-of-fit statistics using path analysis technique of structural equation modelling using AMOS 18.0. Findings – Based on the results, a culture influenced TQM model has been developed. The model demonstrates a linkage between cultural dimensions and TQM interventions, thereby suggesting that OC characterised by “openness”, “confrontation”, “trust”, “authenticity”, “proaction”, “autonomy”, “collaboration” and “experimentation” has a significant and positive impact on TQM implementation. Practical implications – The study presents many practical implications, specifically for quality managers in Indian auto component SMEs. The study has developed a culture influenced TQM model which identifies dimensions of OC that promote TQM implementation. The study also identifies various interventions of TQM in their order of significance, which can be used by SMEs in mapping the critical links between OC and TQM through this model. Thus, findings of the present study will help SMEs in this sector to move up the value chain and sustain their global competitiveness. Originality/value – The study provides a culture influenced TQM model which would assist managers in quality implementation in Indian auto component SMEs.
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