The impact of organizational culture on total quality management in SMEs in Nigeria

Eniola, Anthony Abiodun; Olorunleke, Gabriel Kolade; Akintimehin, Olamide Oluwabusola; Ojeka, John Dean; Oyetunji, Bushirat

doi:10.1016/j.heliyon.2019.e02293

Cited by 71 publications

(71 citation statements)

References 98 publications

(151 reference statements)

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“…Although there is a strengthening in environmental disclosure, it is not strong so it has no effect on financial performance. Based on these results, there must be indicators in the organizational culture that can influence environmental performance and disclosure strongly so that it can have a positive impact on financial performance such as the TQM in Nigerian SMEs (Eniola et al, 2019) and restaurants in the USA (Jogaratnam, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…Therefore, companies must implement these activities into an organizational culture. Organizational Culture applied by companies can increase company activities such as increasing accountability and efficiency in several childcare agencies (Vito, 2020), having a positive impact on TQM in SMEs (Eniola et al, 2019), and having a positive impact on restaurants in the USA (Jogaratnam, 2017). Based on the description, the third and fourth hypotheses to be tested are H3 = The effect of environmental performance on financial performance is strengthened by organizational culture as a moderating variable.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Therefore, organization culture will affect a company's financial performance. Organizational culture not only affects company performance but also affects other activities such as some international companies where the organization culture can predict the sustainability of the company (Dyck et al, 2019), some Canadian childcare agencies where accountability and efficiency are increasing due to organizational culture, and leadership as the main thing in agencies (Vito, 2020), SMEs in the western region of Nigeria where organizational culture has a positive impact on total quality management (TQM) which improves the performance of SMEs (Eniola et al, 2019), restaurants in the USA where the organizational culture positively impacts the market orientation of the restaurants (Jogaratnam, 2017), and power companies in Spain where the organization culture positively impacts the safety of the electricity company (Silla et al, 2017). From the results of previous studies, organization culture has a positive impact on company activities.…”

Section: Introductionmentioning

confidence: 99%

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2020

EJBIR

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This study aims to analyze financial performance that is influenced by environmental performance and environmental disclosure by moderating by organization culture. The analysis used is descriptive and verification analysis. The sample used is companies listed on the Indonesia Stock Exchange from 2014 to 2017 in the manufacturing sector. The company is a PROPER with gold, green and blue ratings and has a positive ROA value. Samples that met these criteria during the period 2014-2017 were 163 samples. The results showed that financial performance was positively influenced by environmental performance by 5.2 and positively environmental disclosure by 3.463. Another thing, organizational culture is not able to increase the effect of environmental performance and environmental disclosure on financial performance and even weaken environmental performance by 70,701. Based on this research, environmental management and disclosure is a positive signal for investors in considering investment decision making so that it can improve the company's financial performance, while the organization culture is still implemented to maintain the company's performance in other fields.

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Section: Discussionmentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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2020

EJBIR

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“…In this paper, a structural equation modeling (SEM) is developed to analyze operational communication. The choice of the tool was based on its use in recent research in organizational studies, for example [6,27,57,91,92]: the effect of internal communication and worker satisfaction on the integration in the shop floor; investment in intellectual capital and knowledge management; security climate; human resources management; and organizational culture.…”

Section: Methodsmentioning

confidence: 99%

Analysis of Operational Communication Through Structural Equation Modeling

et al. 2020

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In this study a model was developed for analyzing communication on the shop floor using a Structural Equation Modeling with Partial Least Squares estimation (Partial Least Square, PLS). The model included as an exogenous variable (independent) Knowledge Management (KM), and four endogenous variables (dependent): Written Communication (WC), Oral Communication (OC), Man interaction with Information and Communication Technologies (M-ICT), and Operational Communication (OpC). The data for the exploratory study were collected in a land-based oil production region in the Northeast of Brazil. The data analysis was performed using the SmartPLS ® software. The structural model supported six of the nine hypotheses proposed, presenting statistical significance and predictive relevance. The evaluation of Pearson's determination coefficients (R 2) demonstrated a satisfactory degree of adjustment and adherence in explaining the variance of endogenous variables. The effect size (f 2) of the variance explained by the exogenous variable in the four endogenous variables was classified as "very strong", as shown: in WC f 2 = 0.802; OC f 2 = 0.825; M-ICT f 2 = 2,534; and OpC f 2 = 2.003. The model presented predictive validity, KM showed effect (q 2) classified as "very high" in the M-ICT and OpC. The effect (q 2) of KM on WC and OC presented predictive relevance between medium and high, with q 2 = 0.337 and q 2 = 0.267, respectively. The causal relationships between the observed variables and the percentage of participation of each indicator in its construct are contributions to the management of information about production.

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“…It could be observed that several studies have provided significant outcomes in enhancing SMEs' performance in developing countries (Alosani et al, 2020;Bahta et al, 2020;Eniola et al, 2019;Kiyabo & Isaga, 2019). However, few studies provide effective antecedents, variables, and models that impact SMEs' performance, leading to their weak performance in developing countries (G. , particularly in Kuwait (Abu-Aisheh, 2018;Al-duwailah et al, 2019;Alzougool, 2019).…”

Section: Organizational Performancementioning

confidence: 99%

The Nexus Between Learning Orientation, TQM Practices, Innovation Culture, and Organizational Performance of SMEs in Kuwait

Sawaean¹,

Ali

2021

IJIKM

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Aim/Purpose: This paper aimed to examine the impact of learning orientation on organizational performance of small and medium enterprises (SMEs) via the mediating role of total quality management (TQM) practices and the moderating role of innovation culture. Background: SMEs’ organizational performance in developing countries, particularly in Kuwait, remains below expectation due to increasing competition and inadequate managerial practices that negatively impact their performance. Although several studies had revealed a significant effect of learning orientation on SMEs’ performance, the direct impact of learning orientation on their performance is still unclear. Thus, the link between learning orientation and organizational performance remains inconclusive and requires further examination. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather the data in a specific period. The data were collected by distributing a survey questionnaire to the owners and Chief Executive Officers (CEOs) of Kuwaiti SMEs using online and on-hand instruments with 384 useable data obtained. Furthermore, the partial least square-structural equation modeling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: This study bridged the significant gap in the role of learning orientation on SMEs’ performance in developing countries, specifically Kuwait. In this sense, a conceptual model was introduced, comprising a learning orientation, TQM practices, innovation culture, and organizational performance. In addition, this study confirmed the significant influence of TQM practices and innovation culture as intermediate variables in strengthening the relationship between learning orientation and organizational performance, which has not yet been verified in Kuwait. Findings: The results in this study revealed that learning orientation had a significant impact on organizational performance of SMEs in Kuwait. It could be observed that TQM practices play an important role in mediating the relationship between learning orientation and performance of SMEs, as well as that innovation culture plays an important moderating role in the same relation. Recommendations for Practitioners: This study provided a framework for the decision-makers of SMEs on the significant impact of the antecedents that enhanced the level of organizational performance. Hence, owners/CEOs of SMEs should improve their awareness and knowledge of the importance of learning orientation, TQM practices, and innovation culture since it could significantly influence their performance to achieve success and sustainability when adopted and managed systematically. The CEOs should also consider building an innovation culture in the internal environment, which enables them to transform new knowledge and ideas into innovative methods and practices. Recommendation for Researchers: The results in this study highlighted the mediating effect of TQM practices on the relationship between learning orientation (the independent variable) and organizational performance (the dependent variable) of SMEs and the moderating effect of innovation culture in the same nexus. These relationships were not extensively addressed in SMEs and thus required further validation. Impact on Society: This study also influenced the management strategies and practices adopted by entrepreneurs and policymakers working in SMEs in developing countries, which is reflected in their development and the national economy. Future Research: Future studies should apply the conceptual framework of this study and assess it further in other sectors, including large firms in developing and developed countries, to generalize the results. Additionally, other mechanisms should be introduced as significant antecedents of SMEs’ performance, such as market orientation, technological orientation, and entrepreneurial orientation, which could function with learning orientation to influence organizational performance effectively.

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The impact of organizational culture on total quality management in SMEs in Nigeria

Cited by 71 publications

References 98 publications

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Analysis of Operational Communication Through Structural Equation Modeling

The Nexus Between Learning Orientation, TQM Practices, Innovation Culture, and Organizational Performance of SMEs in Kuwait

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