A study of performance measures and quality management system in small and medium enterprises in India

Abstract

PurposeThe paper aims to identify causality amongst small and medium enterprises' (SMEs') performance indicators, propose an integrated index of business performance and quality practices and investigate the effect of quality management system (QMS) on business performance.Design/methodology/approachThis study proposes a two-stage approach. In the first stage, the authors gathered responses with a questionnaire on variables affecting business performance and identified dimensions using exploratory and confirmatory factor analyses. Path analysis was carried out to identify causality between the dimensions. In the next stage, the validation of stage 1 findings was carried out to substantiate the proposition that QMS affects performance. Questionnaire survey and in-depth interviews were conducted during the second stage. The analysis was done following the case study protocol – within- and cross-case analysis and validated with supportive and conflicting literature.FindingsThe results show that the employee – dimension is crucial to process effectiveness, customer satisfaction and finances. Customer satisfaction results from employee satisfaction and processes. QMS impacts processes and employee performance, thus establishes the causality between business performance factors and QMS. QMS impacts finances in the short run but yields long-term benefits and is dependent on two factors – degree of knowledge of quality practices and its application in business.Originality/valueThis study reveals the performance dimensions of SMEs, their causality and the impact of QMS on performance. It suggests a shift from traditional approaches, correcting defects using statistical quality control approaches, to a sustainable growth path – a long-term approach. This study puts forward two associated indices – the business performance and the knowledge of quality practices and its application index.

An Exploratory Study of Quality Management for Sustainability among Small Medium-Sized Enterprise

“…This implies that the introduction of quality management tools becomes more necessary when top management introduces new, innovative managerial tools, hence enhancing organizational performance. Our findings also concur with other research in that SMEs are likely to struggle to adopt quality management due to issues including inadequate employee training and incompetent management [27].…”

Drifting the goals archetype: a systemic study

“…Labors' learning is poor under workload and time pressure (Gonzalez, 2005). WP causes fatigue which affects the health of the labors (Jiang et al, 2014) and result in rework affecting the service quality (Bagodi et al, 2021). Cutting corners generally occur when the resources are limited (Sekerka and Zolin, 2007) and when organizations prefer efficiency over risks (Parks et al, 2010).…”

“…WP causes fatigue which affects the health of the labors (Jiang et al. , 2014) and result in rework affecting the service quality (Bagodi et al. , 2021).…”

Orientación emprendedora, gestión de la calidad total y desempeño del sector hotelero de Baja California: un estudio cuantitativo

“…Por otra parte, se ha generado una gran cantidad de investigaciones sobre el impacto que GCT tiene en las organizaciones (Al-Ababneh, 2021;Bagodi et al, 2021;Do et al, 2021;Hilman et al, 2019;Mehralian et al, 2017), principalmente sobre su desempeño financiero y no financiero (Alshourah, 2021;Hilman et al, 2019;Liu et al, 2020;Mehralian et al, 2017;Waheed, 2020), incluyendo el sector hotelero (Bazazo et al, 2017b;Iqbal et al, 2017;Khan et al, 2020;Oltean & Gabor, 2020;Pham, 2020;Sunil et al, 2021;Wang et al, 2012).…”