Abstract

The purpose of this paper is to research how the critical total quality management (TQM) factors present in the European Foundation for Quality Management (EFQM) model make up a management system. This article presents a significant contribution to the current body of TQM by establishing the model's internal working structure as a management system and also by showing how the way in which the organization designs and starts up this system has a bearing on its results. The methodology used is structural equation modeling (Partial Least Squares technique). The sample consisted of 116 firms. Our findings show that: (1) the EFQM model is a reliable and valid framework to measure the results achieved by the firm; (2) The synergies between the critical factors make up a management system, especially, the importance of leadership, strategy and processes for the system's effectiveness and soundness; (3) The obtaining of a measure of the overall results. This allows us to have an overall indicator of the level of excellence attained by the firm; (4) The process management fully mediates the influence of strategy, and alliances and resources management respectively on overall results.

Highlights

  • A great deal of research has clearly shown how total quality management (TQM) can help organizations to achieve their economic and strategic aims, as well as to obtain excellent results

  • Our findings show that: (1) the European Foundation for Quality Management (EFQM) model is a reliable and valid framework to measure the results achieved by the firm; (2) The synergies between the critical factors make up a management system, especially, the importance of leadership, strategy and processes for the system’s effectiveness and soundness; (3) The obtaining of a measure of the overall results

  • The objectives of this work are focused on: (1) analyzing the EFQM model’s predictive power, reliability and validity to measure the level of organizational excellence; (2) going deeply into the knowledge of how the agents of the EFQM model are interrelated and how the organization can obtain better results through process management; (3) identifying which factors are the most important or influential when managing for excellence and obtaining better results; and (4) assessing the mediator role of processes in the EFQM model

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Summary

Introduction

A great deal of research has clearly shown how total quality management (TQM) can help organizations to achieve their economic and strategic aims, as well as to obtain excellent results. The indispensable elements for TQM to produce the desired effect are called critical factors. Among those most studied in the literature are: top management leadership and commitment to quality, strategic planning, continuous improvement, Journal of Business Economics and Management, 2014, 15(5): 862–885 customer focus, information-based management, human resources management, process control and management and supplier management (Sila, Ebrahimpour 2003). For a notable number of researchers (Kim et al 2010) excellence models or quality awards are suitable frameworks for the TQM implementation. In Europe, the EFQM model is the most well-known and widespread reference when introducing and improving a TQM system (Kim et al 2010).

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