An Empirical Assessment Of The EFQM Excellence Model In Purchasing

Abstract

This study focuses on the important concepts of quality management, internal customer satisfaction, and business performance within the neglected purchasing unit of manufacturing firms on the basis of the European Foundation for Quality Management (EFQM) Excellence Model, thus, filling a void in the existing literature. In doing so, this study tests the viability of the EFQM model in a single functional unit. Three hypothesis were generated based on the EFQM model to identify the specific relationships between purchasing’s quality management practices (EFQM enabler), internal customer satisfaction, and business performance (EFQM results). The hypotheses were tested through structural equation modeling based on a sample of 306 purchasing agents within manufacturing. The results indicated that the EFQM seem to be a viable model that represents what impacts implementing QMP enablers will have on the resultants, ICS and OP. Additionally, the results identified that the extent of adoption of quality management purchasing has a direct positive impact on improving internal customer satisfaction and an indirect positive impact on business performance mediated by internal customer satisfaction, as predicted by the EFQM model. This study highlights the positive impact of adoption of EFQM in the purchasing area, thus, lends support to purchasing departments trying to justify the implementation of quality management practices to their administrations. Additionally, it gives upper management, looking for ways to improve the company’s bottom line, the specifics to do this through the implementation of quality management practices in purchasing. Management and purchasing departments are given a blueprint for improving their performance.