Mediating effect of TQM on relationship between organisational culture and performance: evidence from Indian SMEs

Abstract

The objective of this paper is to examine the relationship between organisational culture, total quality management (TQM) and organisational performance in context of Indian auto component small and medium enterprises (SMEs). Specifically, it proposes a conceptual model exhibiting proposed relationships between organisational culture, TQM interventions and organisational performance. Survey methodology was used for data collection from Quality Heads of Indian auto component SMEs which are Auto Component Manufacturer’s Association of India members. The proposed conceptual model has been tested using parameter estimation statistics and goodness-of-fit statistics of path analysis technique of structural equation modelling using AMOS 18.0. Based on the results, the proposed conceptual model establishing the following relationships has been validated: (i) there is no significant direct effect of organisational culture on organisational performance; (ii) organisational culture has a positive and significant impact on TQM interventions; (iii) TQM interventions have a positive and significant effect on organisational performance, and (iv) the mediation effect of TQM on the relationship between organisational culture and organisational performance is significant. On the practical front, the insights gained from the present study would help Indian auto component SMEs to adequately align their TQM interventions with their respective organisational culture, which in turn will improve their performance and thus will help them enhance their global competitiveness.