The relationship between total quality management practices and their effects on bank’s technical efficiency

Abstract

Purpose -The purpose of this paper is to investigate the relationship between total quality management (TQM) practices and banks' technical efficiency. Design/methodology/approach -A survey questionnaire was constructed to measure TQM practices and quantitative data were collected to measure banks' technical efficiency. The respondents were required to indicate their degree of implementation of quality management practices in the survey instrument. Organizational performance was indicated by quantitatively measuring banks' technical efficiency using data envelopment methodology. Findings -The study found that there is a relationship between TQM practices and organizational performance, as measured by banks' technical efficiency. Furthermore, the TQM practices of human resources management and technical systems would appear to be important practices in impacting banks' technical efficiency. Research limitations/implications -This study only considered commercial banks registered in the first market of Amman Stock Exchange due to quantitative data availability. Also, due to data envelopment analysis methodology of homogeneous, Islamic banks were excluded from the study. It can be argued, however, that the surrogating of different organizational performance in one measurement such as technical efficiency and which TQM practices have the strongest impact on such a measure can offer possibly different facets of a single phenomena such as TQM. Originality/value -Although research on the relationship was investigated by relating TQM practices and a single organizational performance, but no research have surrogated many organizational performance in one measurement such as technical efficiency.

The impact of quality management practices on knowledge management processes: a study of a social security corporation in Jordan

“…The conceptual model of the study illustrated in Figure 2 the dimensions of TQM practices were adopted from the following studies: Cha (2019), Salhieh and Abu-Doleh (2015), Wu (2015), Shan et al (2013), Talib et al (2013), Zwain (2012), Ismail Ababaneh (2010), Zeng et al (2007) and Lakhal et al (2006). Leadership and management commitment; customer focus; people management; strategic planning; processes management; rewards and recognition; and employee involvement all acted as the independent variables.…”

Do corporate social responsibility practices affect the relative efficiency of Egyptian conventional and Islamic banks?

“…Regarding the assessment of the bank's technical efficiency based on DEA, generally, two distinctive approaches, the production approach and the intermediation approach, were adopted for assessing the relative efficiency of banking (Avkiran, 2011). In the current study, following Shahwan and Hassan (2013) and Salhieh and Abu-Doleh (2015), the production approach was adopted. Consequently, three input variables, namely, total expenses, customer deposits and fixed assets, were adopted, while two variables, total income and net cash from operating were used as output variables.…”

A DEA-Based Decision Support Framework for Organizations’ Performance Evaluation considering TQM and Knowledge Management

“…Kuah and Wong [23] applied a two-level DEA model for measuring the performance of Malaysian universities with regard to KM factors while Shirouyehzad et al [24] considered the criteria of KM and safety management as inputs and customer satisfaction and accident indicators as outputs of a DEA model for performance evaluation of 12 companies in the car industry in Esfahan. In addition, Salhieh and Abu-Doleh [25] indicated the impact of TQM on banks efficiency applying a DEA-based approach. However, some research can be found which applied DEA for selecting, improving, or evaluating six sigma projects as well.…”