scholarly journals The Relationship Between Quality Management Practices and Productivity in Revenue and Cost Management : A Study of Local Authorities in Peninsular Malaysia

Author(s):  
Khairul Anuar Mohd. Ali ◽  
Rushami Zien Yusoff ◽  
Zakaria Abas

The globalization and liberalization of the world economic system have brought us to an era where global competition is highly intense. The introduction of new technology and systems has greatly affected the performance of organizations. Quality is widely recognized as one of the important disciplines and strategies for competitiveness. This study examines the relationship between quality management practices and the productivity in revenue and cost management in local authorities. Three hundred twenty managers from eighty organizations participated in this study. Disproportionate stratified random sampling was used as the sampling technique from the population frame and the data were gathered through self-administered structured questionnaires. The results of the regression analysis showed that only two constructs among the seven quality management practices were found to be significantly related to productivity in revenue and cost management. The construct for employee focus has a positive association with the productivity in revenue and cost management whereas process management has a significant inverse relationship with the productivity in revenue and cost management. Thus, local authorities need to address these two constructs in order to achieve a higher level of productivity in revenue and cost management.  

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ekpenyong Ekpenyong Udofia ◽  
Bimbo Onaolapo Adejare ◽  
Gbemi Oladipo Olaore ◽  
Etete Ekpenyong Udofia

PurposeMost studies on small and medium scale enterprises lump both small-scale and medium-scale businesses together as entirely similar phenomenon, thus creating an oversight of the degree of performance recorded by medium-scale businesses. In line with investigating medium-scale firms' performance, this study examines the role of quality management in the performance of medium-scale firms to evolve research-based recommendation for better performance.Design/methodology/approachCross-sectional survey design and random sampling were employed. Analysis was based on 915 responses obtained via questionnaire copy distribution from employees within the supply chain, production, operations, and marketing/sales department of selected firms. Hypotheses testing was done using the structural equation model.FindingsA positive significant relationship between quality management and operational performance, employee performance, and quality performance dimensions was identified. An insignificant relationship between quality management and financial and innovation performance dimensions was discovered. However, when mediated by employee focus and process management, significant relationships were observed among all performance dimensions.Research limitations/implicationsThe study reveals that employee focus and process management have the greatest mediating impact on the relationship between quality management and the organisational performance of medium-scale manufacturing firms. This study charts the course for other studies to investigate the mediating role of quality management practices on the relationship between quality management and the organisational performance of medium-scale firms in other developing nations. The manufacturing sector has thirteen industries, but only six were captured in this study. This poses a limitation to the generalisation of the findings of this study. Further studies could strive for a representation of every manufacturing industry to aid generalisation purposes.Practical implicationsManagers of medium-scale manufacturing firms must understand that it might be impossible to get a one size fits all approach to improving performance dimensions. Managers are advised to choose one or two performance dimensions as the goal, then focus on achieving them. This will help clarify which path is best to get the desired results and maximise their quality management system.Originality/valueThis study examines the impact of quality management practices on an integrated performance model of medium-scale firms. The study also uniquely examines the mediating impact of exclusive quality management practices on the relationship between quality management and an integrated performance model.


2013 ◽  
Vol 61 (1) ◽  
Author(s):  
Hayati Habibah Abdul Talib ◽  
Khairul Anuar Mohd Ali ◽  
Fazli Idris

Measurement of quality management practices is becoming more important in enhancing the holistic competitiveness in today’s challenging market. Malaysia’s food processing industry is rapidly growing and has contributed to the country’s economic development. Malaysia is aiming towards the achievement to be world halal-hub as its potential has been identified. However, literature’s on quality management practices and performance in this industry has indicated that, most of previous studies are focuses to the automotive and electrical industries. Thus, the research question on quality management practices and performance among these industry players in Malaysia are still unanswered. Questionnaires are used to gather information from SMEs in Malaysia’s food processing industries through multistage sampling technique and a total of 221 questionnaires are returned. SPSS and AMOS 5.0 are used to analyze the relationship between this two latent constructs. The finding demonstrates the measured quality management practices are significant to the SMEs’ organizational performance. The findings has highlighted the important factors of quality management practices and suggesting factors that need to be given attention by the food processing SMEs in order to gain excellence performance and be more competitive. Nevertheless, future studies are necessary to set forth and examine various factors that may affect the performance of SMEs in this industry.


2021 ◽  
Vol 8 (12) ◽  
pp. 64-80
Author(s):  
Cynthia Oduro Nyarko

Micro, Small and medium-sized enterprises (MSMEs) are important to national development as they produce a huge percentage of the national output and provide an even greater proportion of employment. They play a significant role in economic growth, innovation, poverty alleviation and raise standard of living.  Research has shown that most manufacturing SMEs that adopt and implement TQM practices exhibited a significant positive relationship and confirmed that TQM practices are indicators of firm performance.  The study examines the benefits of TQM implementation, and the challenges these manufacturing SMEs face in their attempt to implement TQM practices.  The study which was exploratory in nature used descriptive survey and a structured interview to collect data from the SMEs who were purposively selected for the interview.  The study purposively selected fifty (50) owner-managers for the interview, but due to the COVID-19 health pandemic, only five (5) participated in the interview.  A sample size of 5 respondents were selected for exploratory study in Accra metropolitan area of the Greater Accra region to respond to the interview instrument.   The tool for qualitative data analysis was NVivo version 11.  The study discovered that manufacturing SMEs adopted and implemented TQM practices in their organisations. The TQM practices which were analysed were: organisational leadership; strategic planning and development; customer focus; human resource focus; continuous improvement and process management.  The study established that effective implementation of TQM practices led to financial performance of these manufacturing SMEs as there was a significant positive relationship between the TQM practices and firm performance.   The study although confirmed a direct positive relationship between quality management practices and firm performance, there were numerous challenges that serves as barriers to TQM implementation in the organisations. The challenge of downsizing was the most reported among the SMEs.  It is recommended that manufacturers in the SME sector must be aware of the prospects of quality management practices since the success of its implementation depends largely on its awareness.  It is also recommended that SMEs identifies challenges that face its implementation of TQM, so as to eliminate any barrier to its implementation.


2016 ◽  
Vol 78 (7) ◽  
Author(s):  
Zaharuzaman Jamaluddin ◽  
Ahmad Mahir Razali ◽  
Zainol Mustafa

Measurement of quality management practices (QMP) is one of requirements which should be emphasized by the organizations to be competitive in challenging market. Therefore, this study examines the relationship between quality management practices and performance in the manufacturing industry using constructs namely management commitment, quality tools, continuous improvement, process management, training and organisational performance. A framework was developed based on the literature review and assessed using Structural Equation Modeling (SEM) with AMOS software used for modeling analysis. A total of 480 questionnaires were distributed, and 210 questionnaires were valid for analysis. The findings show significant relationship by the management commitment to process management and training. Also, training affects the quality tools, continuous improvement and process management. Similarly, quality tools influence on continuous improvement and process management. Furthermore process management affects the continuous improvement Next, continuous improvement gives impact to organisational performance. The results of the study can be used by managers in manufacturing companies to consider and adapt their QMPs and performance assessments toward increasing competitiveness.


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