Empirical validity of Baldrige criteria: New Zealand evidence

Abstract

PurposeThe purpose of this paper is to empirically assess the validity of Baldrige Criteria for Performance Excellence (CPE) for New Zealand organisations and to identify methodological gaps.Design/methodology/approachBy means of data collected from a sample of 91 New Zealand organisations, through a self‐assessment instrument (as a proxy for the CPE) a structural equation model was studied using the partial least squares method. The measurement validity of the CPE as well as the implied causal relationships in the CPE framework was tested. A sensitivity analysis was conducted to gain additional insights.FindingsThe measurement validity of the CPE was established; of the 13 implied causal relationships in the CPE framework, 11 were statistically significant, which compared favourably with past studies. The results endorse some salient features of quality management: reliance on measurement, analysis, and knowledge management; the involvement of people; and the role of leadership in setting direction.Research limitations/implicationsAs the study was based on a small sample, this model needs to be tested with other data sets. The study revealed the need to meta‐analyse past measurement and structural models as well as measurement instruments.Practical implicationsThe study endorsed the reliability and validity of a well designed, well administered, self‐assessment instrument.Originality/valueAs the first New Zealand CPE validity study, the paper introduces the partial least squares method and shows some of its relevant versatile features, introducing some measurement perspectives not conceptualised before in CPE validation studies.