How to invest in total quality management practices for enhanced operational performance: findings from PLS-SEM and fsQCA

Abstract

PurposeConsumer expectations of quality have grown in recent years, forcing organisations, both service and manufacturing, to adopt total quality management (TQM) principles to satisfy customer demands efficiently. However, previous studies on the performance impacts of total quality management practices have mainly focused on the financial performance of firms in the manufacturing sector. This study focusses on the research questions: (1) What is the effect of TQM practices on operational performance? and (2) How do TQM practices combine to influence the operational performance of healthcare facilities?Design/methodology/approachUsing a sample of 154 health facilities (i.e. private hospitals, pharmacies, maternity clinics, and diagnostic centres), the authors applied symmetric (PLS-SEM) and asymmetric (fsQCA) data analysis approaches to examine how TQM practices influence the operational performance of health facilities in the Ashanti Region of Ghana.FindingsThe PLS-SEM results revealed that five out of the seven TQM practices investigated influenced operational performance. However, the fsQCA results identify five different complex combinations of TQM practices that lead to operational performance.Research limitations/implicationsLongitudinal studies can be conducted in the future to assess changes in the variables over time. A control variable, such as firm size, should be considered to assess the level of implementation of TQM practices based on firm size. A different performance measure, for instance, sustainability indicators or the balance score card, could be used to examine performance.Practical implicationsA proper and coordinated integration of the TQM practices is required for firms to be able to achieve operational performance. TQM practices vary in their sufficiency for operational outcomes; therefore, management needs to carefully consider their implementation as part of the organisation's strategy.Originality/valueThis research, by focussing on TQM practices from both symmetrical and asymmetrical perspectives, contributes to the understanding of the literature on TQM, thereby providing actionable insight on how to invest in the various TQM practices for improved operational performance.

The impact of TQM practices on organizational performance and on innovation: the mediating role of organizational learning

“…In this regard, Total quality management (TQM) is recognized as a strategic tool to meet this challenge (Ahinful et al, 2023;Acquah et al, 2023;Khalfallah et al, 2021;Kafetzopoulos et al, 2019;Zeng et al, 2015;Prajogo et al, 2003). In fact, the relationship between TQM and organizational performance (OP) is considered an important area of research in quality management (Nair, 2006).…”

“…The empirical investigations have conceptualized OP as a multidimensional concept. These dimensions concern financial dimension (Lakhal et al, 2006;Kaynak, 2003) and nonfinancial dimensions such as operational performance (Adem and Virdi, 2023;Acquah et al, 2023;Abdi and Singh, 2022;Anil and Satish, 2019;Jaca and Psomas, 2015;Lakhal et al, 2006), quality performance (Abdi and Singh, 2022;Lakhal and Pasin, 2008), business performance (Do et al, 2021), market performance (Kaynak, 2003). However, other studies have focused on either financial performance indicators (Hendricks and Singhal, 1996;Easton and Jarrell, 1998) or non-financial performance (Sharma and Modgil, 2020;Anil and Satish, 2019;Rawashnedeh, 2018;Bouranta et al, 2017;Arshad and Su, 2015;Jaca and Psomas, 2015;Hassan et al, 2012;Zehir et al, 2012;Kocoglu et al, 2011;Prajogo and Sohal, 2004;Kaynak, 2003).…”

“…In this regard, Total quality management (TQM) is recognized as a strategic tool to meet this challenge (Ahinful et al. , 2023; Acquah et al. , 2023; Khalfallah et al.…”

Predicting customer loyalty to Airbnb using PLS-SEM: the role of authenticity, interactivity, involvement and customer engagement

“…CE responds to the customer-focus principle of TQM. Customer focus has been described as “the extent to which an organisation can fulfil the needs and expectations of customers, as well as the subsequent feedback that is sought to know whether those needs and expectations are being met” (Acquah et al. , 2022, p. 5).…”

Inventory management and TQM practices for better firm performance: a systematic and bibliometric review

“…Going beyond conventional wisdom proposes that managers increase productivity by steadily lowering inventory levels (Eroglu and Hofer, 2011). The TQM aim is to achieve higher quality through the coordination effort by every stakeholder presented in quality delivery (Acquah et al, 2022). The necessity for a broader focus on quality in all areas of an organisation rather than just assuring the quality of final goods led to the development of the idea of TQM (Shafiq et al, 2019).…”