The impact of soft TQM on financial performance

2018 ◽  
Vol 35 (7) ◽  
pp. 1360-1379 ◽  
Author(s):  
Ahmad Musbah Albuhisi ◽  
Ayman Bahjat Abdallah
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Pharmaceutical Manufacturing ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Content Type ◽  
Customer Perspective ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the effect of soft total quality management (TQM) on organizational performance in the Jordanian pharmaceutical manufacturing sector using the balanced scorecard (BSC) perspective. It also examines the indirect effect of soft TQM on financial performance through BSC non-financial perspectives. Design/methodology/approach The study is based on survey data collected from 197 employees in managerial and non-managerial positions working in Jordanian pharmaceutical manufacturing companies. Validity and reliability analyses were performed, and the study hypotheses were tested using structural equation modeling. Findings The results indicated that soft TQM positively affected all BSC perspectives. Customer perspective positively affected financial performance while innovation and learning perspective and internal business process perspective did not. In addition, only customer perspective significantly mediated the relationship between soft TQM and financial performance. Originality/value This is one of the first papers to examine the effect of soft TQM on organizational performance in terms of BSC perspective in the pharmaceutical sector. In addition, this paper is the first to examine the mediating effects of the BSC non-financial perspectives on the relationship between soft TQM and financial performance.

Impact of supply chain information sharing on performance of fashion enterprises

2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Information Sharing ◽  
Life Cycles ◽  
Equation Modeling ◽  
Content Type ◽  
Research Results ◽  
Fashion Brand ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.

The impact of a learning organization on performance

2017 ◽  
Vol 41 (2) ◽  
pp. 177-193 ◽  
Author(s):  
Kyoungshin Kim ◽  
Karen E. Watkins ◽  
Zhenqiu (Laura) Lu
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Human Resource Development ◽  
Human Resource ◽  
Learning Organization ◽  
Resource Development ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this study is to examine the relationships among a learning organization, knowledge and financial performance using the Dimensions of the Learning Organization Questionnaire and its abbreviated version. Design/methodology/approach This study used a secondary data set and performed second-order factor analysis and structural equation modeling for testing the proposed relationships. Findings The study found that a learning organization has a positive effect on knowledge performance; knowledge performance has a positive effect on financial performance; and knowledge performance fully mediates the relationship between a learning organization and financial performance. Research limitations/implications This study contributes to validating the current dimensionality of the theoretical framework of a learning organization proposed by Watkins and Marsick (1993, 1996) and offers a valid conceptual framework of the relationship among the learning culture and organizational performance dimensions. Practical implications This study re-stresses the significance of the learning and knowledge generated by the human resources of an organization and developed by human resource development practitioners. Originality/value This study is valuable to human resource development scholars and practitioners interested in improving and measuring organizational performance.

The relationship between innovation and total quality management and the innovation effects on organizational performance

2017 ◽  
Vol 34 (9) ◽  
pp. 1474-1492 ◽  
Author(s):  
Marina Godinho Antunes ◽  
Joaquín Texeira Quirós ◽  
Maria do Rosário Fernandes Justino
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Financial Performance ◽  
Organizational Performance ◽  
Product Innovation ◽  
Process Innovation ◽  
Total Quality ◽  
Content Type ◽  
Innovation Strategies ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between innovation and total quality management (TQM), and also to identify the effects of innovation on organizational performance. This research proposes a conceptual model that intends to study several research hypotheses. Design/methodology/approach The data were obtained through an online questionnaire, sent to small- and medium-sized Portuguese companies, having being conducted the study based on responses received from 287 valid questionnaires, and using a multivariate statistical analysis for statistical development. Findings The findings indicate that companies that adopt strategies of process innovation get improvements in their performance, both operationally and financially, while product innovation only provides improvements in the financial performance of organizations. It was also found that TQM practices encourage the definition of innovation strategies of products and processes. On the other hand, it was found that only companies that adopt innovation strategies of their processes promote the adoption of TQM practices, and there is a statistically significant relationship between product innovation and the implementation of TQM practices. Originality/value This research analyzed the dimensions studied in different aspects. It considered product innovation and process innovation, and with respect to performance, this dimension was analyzed through two different perspectives, namely, financial performance and operational performance. This research also provides a particular contribution to the literature with the analysis of the interdependencies between innovation and TQM in small- and medium-sized Portuguese companies.

scholarly journals Managing emergency situations with lean and advanced manufacturing technologies: an empirical study on the Rumbia typhoon disaster

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaodie Pu ◽  
Meng Chen ◽  
Zhao Cai ◽  
Alain Yee-Loong Chong ◽  
Kim Hua Tan
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Operations Management ◽  
Advanced Manufacturing ◽  
Manufacturing Companies ◽  
Content Type ◽  
Emergency Situations ◽  
Advanced Manufacturing Technologies ◽  
Manufacturing Technologies ◽  
The Impact

PurposeThis study aims to examine the impact of lean manufacturing (LM) on the financial performance of companies affected by emergency situations. It additionally explores the role of advanced manufacturing technologies (AMTs) in complementing LM to enhance financial performance in emergency and non-emergency situations.Design/methodology/approachBoth survey and archival data were collected from 219 manufacturing companies in China. With longitudinal data collected before and after an emergency situation (i.e. Typhoon Rumbia), regression analysis was conducted to investigate the effects of LM and AMTs on financial performance in different contexts.FindingsOur results reveal an inverted U-shaped relationship between LM and financial performance in the context of emergency. We also found that AMTs exerted a positive moderation effect on the inverted U-shaped relationship, indicating high levels of AMTs that mitigated the inefficiency of LM in coping with supply chain emergencies.Research limitations/implicationsThrough simultaneous investigation of LM and AMTs as bundles of practices and their fit with different contexts, this study takes a systems approach to fit that advances the application of contingency theory in the Operations Management literature to more complex patterns of fit.Originality/valueThis study illuminates how AMTs support LM practices in facilitating organizational performance in different contexts. Specifically, this study unravels the interaction mechanisms between AMTs and LM in influencing financial performance in emergency and non-emergency situations.

TQM and organizational performance using the balanced scorecard approach

2017 ◽  
Vol 66 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Golnaz Nooriparto ◽  
Hamid Reza Rasekh
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
Structural Equation ◽  
Strong Association ◽  
Measurement Model ◽  
Equation Modeling ◽  
Total Quality ◽  
Content Type ◽  
The Balanced Scorecard ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the implementation of total quality management (TQM) and organizational performance, using the balanced scorecard (BSC) approach. Design/methodology/approach In order to investigate the relationship between TQM and BSC, a questionnaire was developed and distributed to 30 largest pharmaceutical distribution companies in Iran. Structural equation modeling was used to evaluate the measurement model and to test the research hypotheses using the data from 933 completed questionnaires. Findings The results supported the research model and revealed that TQM implementation can positively and significantly influence the BSC and its four perspectives. Practical implications Considering the strong association between TQM and all four perspectives of organizational performance (BSC), managers should strongly leverage the implementation of TQM practices in order to reach their strategic objectives. Originality/value This study is the first empirical study conducted on the association of TQM and BSC in the pharmaceutical industry. The findings of this study provide strong evidence supporting the implementation of TQM in the pharmaceutical context.

Establishing a link among total quality management, market orientation and organizational performance

2020 ◽  
Vol 32 (6) ◽  
pp. 1507-1524 ◽  
Author(s):  
Hari Lal Bhaskar
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Organizational Performance ◽  
Market Orientation ◽  
Testable Hypothesis ◽  
Total Quality ◽  
Content Type ◽  
Manufacturing Organizations ◽  
The Impact ◽  
The Relationship

PurposeThis paper presents findings of a survey on total quality management (TQM) practices adopted by the Indian manufacturing organizations. The purpose of this paper is to test and establish the relationship between TQM practice and organizational performance (OP). This paper also aims to examine the impact of TQM practices on OP of Indian manufacturing organizations.Design/methodology/approachA survey questionnaire was developed and randomly distributed through e-mail to senior managers of 275 Indian manufacturing organizations. About 230 received questionnaires were used for data analysis. Response rate was 83.63 percent. In particular, hypotheses were developed to examine the effect of TQM on the OP of the manufacturing organizations. Cronbach's alpha reliability of questionnaire was analyzed using factor analysis. Rigorous literature review is enabled to construct structural measurement model, formulation of testable hypothesis and operationalization of constructs.FindingsIt is discovered that TQM has a positive and significant effect on the market orientation (MO). Similarly, the results showed that MO has a positive and significant effect on the OP. With regard to the relationship between TQM and OP, this study found that TQM significantly and positively affects the OP of Indian manufacturing organizations.Originality/valueThis study is a rare and unique empirical study that establishes a link among TQM, MO and OP. The study fulfills need of quality management practice and offers practical implications to Indian managers and motivates further research on the relationship between TQM and OP in Indian manufacturing organizations.

The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

2019 ◽  
Vol 50 (1) ◽  
pp. 3-25 ◽  
Author(s):  
Prema Latha Subramaniam ◽  
Mohammad Iranmanesh ◽  
Kavigtha Mohan Kumar ◽  
Behzad Foroughi
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Corporate Reputation ◽  
Social Performance ◽  
Equation Modeling ◽  
Supplier Development ◽  
Socially Responsible ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose In the literature on sustainable supply chain management, the social pillar of sustainability has received relatively little attention, especially in developing countries. The purpose of this paper is to test empirically the impacts of supplier development practices on suppliers’ social performance. Furthermore, the impact of suppliers’ social performance on MNCs’ social performance was investigated and corporate reputation was proposed as a potential explanation for the relationship between MNCs’ social and financial performance. Design/methodology/approach Data were obtained from a survey of 141 multinational companies (MNCs) in Malaysia which were listed in the Federation of Malaysia Manufacturers’ directory 2017. Data were analyzed using partial least squares structural equation modeling. Findings The results show that among the four proposed practices, supplier development and supplier collaboration have significant effects on suppliers’ social performance and consequently on the multi-national companies’ social performance. According to these results, multi-national companies’ corporate reputation mediates the relationship between their social and financial performance. Practical implications These results will be useful in helping managers of MNCs to realize that simply monitoring suppliers and giving them incentives are not effective ways of enhancing social responsibility among suppliers; instead, supplier development and collaboration such as technical support and training are needed. Originality/value The results extend the literature on socially responsible supplier development practices by testing empirically the impacts of four popular practices in the literature and showing that supplier monitoring and incentives have no effect.

Investigating causal linkages in the balanced scorecard: an Indian perspective

2018 ◽  
Vol 36 (1) ◽  
pp. 184-207 ◽  
Author(s):  
Adil Zahoor ◽  
Musadiq Amin Sahaf
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Equation Modeling ◽  
Sequential Dependency ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Customer Perspective ◽  
Employee Learning ◽  
The Relationship

Purpose Kaplan and Norton (1996b) claimed that there exists a sequential dependency between the four balanced scorecard perspectives (learning and growth, internal business processes, customer, and financial). Although theoretically supported by various researchers, the said claim has, somehow, attracted limited empirical attention. Therefore, the purpose of this paper is to investigate whether empirical evidence will support the theoretically grounded interrelations between the four balanced scorecard perspectives. Design/methodology/approach For this study, a total of 13 key performance indicators were identified and then clustered into the four perspectives of balanced scorecard, followed by the development of causal linkages. Data related to these indicators were collected from 1,001 employees and 985 customers of two Indian retail banks and then tested for hypothesized relationships using structural equation modeling. All the constructs were measured using scales developed in previous research works. Findings The results indicate that employee learning and growth positively influence the internal business processes which in turn influence the customer perspective. Finally, the customer perspective has a significant positive influence on the financial performance. Further, it was also revealed that internal business processes mediate the relationship between employee learning and growth and customer perspective. Also, the relationship between internal business processes and financial performance is significantly mediated by customer perspective. Originality/value Majority of the previous research on causal linkages of balanced scorecard has been theoretical in nature. Whatever little empirical research is available in this regard is limited to developed nations. In a developing nation like India, these linkages have seldom been examined in the past. The study has been conducted to plug this gap in the literature and, resultantly, provide further insights into the interrelations of the balanced scorecard perspectives.

scholarly journals The impact of Lean bundles on hospital performance: does size matter?

2016 ◽  
Vol 29 (8) ◽  
pp. 877-894 ◽  
Author(s):  
Khalil Al-Hyari ◽  
Sewar Abu Hammour ◽  
Mohammad Khair Saleem Abu Zaid ◽  
Mohamed Haffar
Keyword(s):  
Organizational Performance ◽  
Group Analysis ◽  
Hospital Performance ◽  
Healthcare Sector ◽  
Equation Modeling ◽  
Total Quality ◽  
Private Hospitals ◽  
Content Type ◽  
Size Matter ◽  
The Impact

Purpose The purpose of this paper is to study the effect of the implementation of Lean bundles on hospital performance in private hospitals in Jordan and evaluate how much the size of organization can affect the relationship between Lean bundles implementation and hospital performance. Design/methodology/approach The research is considered as quantitative method (descriptive and hypothesis testing). Three statistical techniques were adopted to analyse the data. Structural equation modeling techniques and multi-group analysis were used to examine the research’s hypothesis, and to perform the required statistical analysis of the data from the survey. Reliability analysis and confirmatory factor analysis were used to test the construct validity, reliability and measurement loadings that were performed. Findings Lean bundles have been identified as an effective approach that can dramatically improve the organizational performance of private hospitals in Jordan. Main Lean bundles – just in time, human resource management, and total quality management are applicable to large, small and medium hospitals without significant differences in advantages that depend on size. Originality/value According to the researchers’ best knowledge, this is the first research that studies the impact of Lean bundles implementation in healthcare sector in Jordan. This research also makes a significant contribution for decision makers in healthcare to increase their awareness of Lean bundles.

Environmental management accounting practices, management system, and performance

2019 ◽  
Vol 37 (9/10) ◽  
pp. 1165-1182
Author(s):  
Nursyazwani Mohd Fuzi ◽  
Nurul Fadly Habidin ◽  
Sharul Effendy Janudin ◽  
Sharon Yong Yee Ong
Keyword(s):  
Environmental Management ◽  
Organizational Performance ◽  
Management System ◽  
Manufacturing Industry ◽  
Management Accounting ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Environmental Management Accounting ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between environmental management accounting practices (EMAP), environmental management system (EMS) and organizational performance (OPM) for Malaysian manufacturing industry by using structural equation modeling (SEM) approach. Design/methodology/approach The population of the Malaysian manufacturing industry comprised 2,600 manufacturing companies. The unit of analysis is the organization that participated in the survey comprised of automotive/machinery, plastics/rubber/metal, food/tobacco, electrical/electronics and chemical/woods. Out of the 2,600 questionnaires sent to the respondents, 395 were received from manufacturing companies. The collected data are analyzed with the IBM SPSS Statistics and SEM technique. Findings Findings found that EMS implementation as a partial mediator to improve EMAP and OPM for Malaysian manufacturing industry. Further, the implementation of EMS was found to mediate the relationship between EMAP and OPM. Research limitations/implications The understanding of the importance of studying the relationship between EMAP, EMS and OPM has been emphasized in the present study. In fact, the findings of this study along with its limitations have paved the way for future research in EMAP, EMS and OPM areas. Practical implications This research provides important guidelines for manufacturers and related companies to implement EMAP and EMS in order to improve OPM. Hence, the Malaysian manufacturing industry may need to consider the measurement of EMAP, EMS and OPM as beneficial to their manufacturing companies. Originality/value The research contributes to the environmental management accounting by empirically linking the relationship between EMAP, EMS and OPM for Malaysian manufacturing industry.

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