The Integrated Relationship among Organizational Learning, TQM and Firm’s Business Performance: A Structural Equation Modeling Approach

Abstract

The methodology of the organizational learning and total quality management (TQM) in the industry is becoming crucial, but there are few empirical studies to investigate the relationship between organizational learning and TQM on business performance in non-life insurance industry. The purpose of this paper is to understand the integrated relationship between organizational learning and TQM as two sources of sustainable competitive advantage. The paper proposes several hypotheses related to the relationship among organizational learning, TQM and business performance. A survey method is used to collect empirical data from non-life insurance companies in Taiwan. In this study, 414 effective questionnaires are analyzed and structural equation modeling (SEM) is used to verify the research framework and hypotheses. The empirical findings indicate that: (1) Organizational learning has significant and positive effects on TQM, (2) Both organizational learning and TQM have significant and positive effects on business performance, (3) TQM fosters business performance and play a mediating role between organizational learning and business performance. Therefore, the study demonstrates that the model can integrate organizational learning and TQM practices and enhance business excellence in financial service organizations, and also extend the prior research and contribute to the existing body of literature.

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

“…It should be highlighted that total employee involvement cannot be achieved without a solid strategic orientation towards quality that facilitates efficient TQM implementation. Therefore, the current study proposed that excluding learning orientation prevents implementing efficient TQM practices (Lee & Lee, 2015). In this context, previous studies have not investigated the role of learning orientation as an effective strategic orientation in employing TQM in SMEs in developing countries.…”

“…Management approaches such as TQM practices can be integrated with learning orientation to create a conducive organizational environment and culture that promotes a shared vision and commitment to learning. There is also a need to emphasize the importance of sharing knowledge and information in the whole organization and transforming them into sound practices, procedures, and policies to attain organizational goals (Çömez & Kitapçi, 2016;Lam et al, 2011;C-Y Lee & Lee, 2015). Learning orientation could transform organizations by focusing on continuous improvement in individual attitudes and creating a conducive culture and values in enhancing individuals' knowledge, skills, and capabilities (Atitumpong & Badir, 2018;Harvey et al, 2019;Kiyabo & Isaga, 2019).…”

“…Ang et al (2011) argued that organizations must address learning orientation if they intend to transform from a learning organization into entities that implement TQM practices to develop their organizational performance. Based on this perspective, TQM practices can only be comprehensively implemented with the firm's dedication towards continuous learning (C-Y Lee & Lee, 2015).…”

Do high performance work systems enhance business performance? Examining the mediating influence of total quality management

“…According to many researchers, TQM does produce value through a variety of benefits (Lee and Lee, 2015;Valmohammadi and Roshanzamir, 2015). It is possible to achieve: an improved understanding of customers´ needs; improved customer satisfaction; better problema-solving, improved internal communication; stronger relationships with suppliers; reduced waste, greater employee commitment and motivation, and fewer errors.…”

Contribution of Organizational Learning and Market Orientation on Business Unit Performance Mediated by Job Satisfaction at Dairy Cattle Milk Cooperatives in East Java, Indonesia

“…Organizational learning indeed improves business unit performance because there is a synergy between organizational learning and attention to market. This synergy helps organization to satisfy market demand which then has good impact on improving business unit performance (Lee & Lee, 2015).…”