Influence of Total Quality Management on Performance of Vietnamese Construction Firms

Abstract

The key objective of this study is to examine the relationship between organisational culture (OC) and Total Quality Management (TQM), and the influence of TQM implementation on organisational performance improvement within Vietnamese construction industry context. Findings based on the survey sample of 104 respondents employed in construction firms in Vietnam showed that Vietnamese construction firms are dominated by clan and hierarchy cultures rather than adhocracy and market cultures according to Competing Value Framework (CVF) of OC classification. Furthermore, organisations dominated by both market and hierarchy culture is the only one unfavourable culture for the use of TQM, whereasorganisations dominated by either clan and hierarchy, clan and adhocracy, or not dominated by any specific cultures could provide a successful environment for TQM implementation. This study also confirmed the significant and positive relationship between TQM implementation and organisational performance improvement.