Applications of TQM Processes to Increase the Management Performance of Enterprises in the Romanian Renewable Energy Sector

Abstract

This paper focuses on total quality management (TQM) processes and their applications to increase the management performance of enterprises in the renewable energy sector (RES). TQM is a modern tool used by enterprises to increase their management performance. We start with a description of Edwards Deming’s conceptualized model, highlighting different phases of its development as described in the literature. The TQM process is then used for an application to the RES in Romania. The quantitative model analyzes the influence of TQM process implementation in achieving competitive advantage and the management performance of the undertakings in the RES. Data was collected through a survey based on a questionnaire addressed to employees and managers in the RES. Structural equation modeling (SEM) was used and the research hypotheses were tested with the partial least squares path method (PLS). Data analysis was performed with the statistical software SmartPLS 3.2.8. The main contribution of this article is to evaluate the relationship between the management performance of enterprises in the RES sector in Romania and TQM process indicators. The results underline the fact that the most important attributes of a TQM process to increase the management performance are: integrated operational processes, policies and trading strategies, integrated operational management, company social responsibility, motivated workforce, knowledge, and competencies. The conclusions of the research are in line with the latest findings in the area, underlining that management performance is the direct result of the association between a group of factors and processes, such as the integrated operational processes, trade strategies and policies, integrated operational management, corporate social responsibility (CSR), motivated workforce, knowledge, and competencies.