EFQM enablers and business performance relationship: Examining mediating role of organizational learning culture in Pakistani textile sector

Abstract

Purpose This paper aims to determine the influence of the European Foundation for Quality Management (EFQM) excellence enablers on the financial, market and non-financial performance of the textile companies in Pakistan. Moreover, the mediating role of organizational learning culture is also tested in EFQM enablers and performance relationships. Design/methodology/approach Using a multi-respondent strategy, the data was collected from 254 textile firms registered with All Pakistan Textile Mills Association (APTMA) using a highly structured questionnaire. The data were analyzed using structural equation modeling via AMOS v.22. Findings The results reveal that EFQM excellence enablers significantly influence financial, non-financial and market performance. Furthermore, organizational learning culture (OLC) significantly positively mediates the relationship between EFQM excellence enablers and business performance. Research limitations/implications This study enhances the literature of EFQM enablers and microfoundations of institutional theory in the textile industry of developing countries and proposes a way forward to the effective utilization of such enablers for higher performance. Originality/value This research is the first of its kind that empirically tests the microfoundations of institutional theory concerning EFQM, OLC and performance in the textile industry of Pakistan.