Relationship amongst TQM, business performance, tools and techniques: Qualitative study result

Abstract

The concept of total quality management (TQM) has been developed as a result of intense global competition. However, almost previous works were given less emphasis on technical aspects; tools and techniques as mediators in TQM performance model, which identified as theoretical gap. In this study, institutional and system theory are applied for examining the relationship amongst TQM, business performance, tools and techniques. The main contribution of this study is to explore the relationships of TQM, and tools and techniques as mediators, which effect to business performance. Qualitative study has been conducted in six companies in automotive industries. Respondents were asked about issue of the industry and TQM. In addition, they also were requested to assess TQM, business performance (BP), tools and techniques based on importance and practices. Spearman's rho was used to analyze correlation amongst them. This study result has identified ten constructs for TQM and six constructs for business performances. Furthermore, three tools and techniques namely statistical process control (SPC), total productive maintenance (TPM) and lean production are the most important tools and techniques in TQM implementation. Network diagram amongst the variable have been developed to understand the relationships. This study shows that there are significant correlation amongst TQM, tools and techniques, and business performance. TQM have strong correlation with tools and techniques (0.714) and business performance (0.928). Furthermore, tools and techniques have also positive correlation with business performance (0.899). The result shows that business performance is accounted 87% by TQM. In addition, if TQM is implemented simultaneously with tools and techniques, business performance is accounted to 91% by TQM and tools and techniques.