Assessing The Relationship Between Total Quality Management (TQM) Practices and Organizational Performance in Libyan Manufacturing Companies

Abstract

In the contemporary landscape, manufacturing companies should actively cultivate their competitiveness and demonstrate the capacity to sustain a robust competitive advantage. Key factors in this pursuit are Organizational Performance (OP) and the implementation of Total Quality Management (TQM), which are widely recognized as crucial variables within the manufacturing sector. This study employs a comprehensive approach, utilizing descriptive analysis with the Statistical Package for Social Sciences (SPSS) and Structural Equation Modeling (SEM) employing the Partial Least Square (PLS) Approach Version 3.0. Distinguished by its capability to represent unobserved concepts in relationships, account for measurement errors in the estimation process, and validate the hypothesized model, this approach adds rigor to the investigation. The primary focus of this research is the assessment of the relationship of TQM implementation across a spectrum of companies, encompassing those with formal TQM programs and those incorporating TQM practices. Meticulously designed questionnaires are utilized for data collection, and distributed among various personnel, including total quality managers, supervisors, quality assistants, control managers, general managers, top manager production managers, and individuals possessing relevant quality expertise. Through rigorous hypothesis testing, the study aims to establish the relationships between TQM and OP. The findings reveal a positive relationship between TQM and OP in the manufacturing companies in Libya. It is anticipated that the outcomes of this study will serve as valuable insights and guidance for compliance managers and practitioners in Libyan manufacturing, fostering improvements in organizational performance through effective TQM implementations