Structural Modeling of Quality Management Practices to Achieve Business Results

Abstract

The study aims to explore a positive relationship between quality management practices, quality performance and profitability of the firm. First critical quality management practices were identified and classified into categories. Then, a structural model linking these practices, quality performance and profitability factors was proposed and empirically tested. The empirical data were obtained from a questionnaire-based survey of 152 Indian manufacturing companies. After the data collection, the scales were purified, validated, tested for reliability and unidimentionality of scales. The model proves to have a direct effect and positive relationship between quality management practices, quality performance and profitability of the firm. The structural model proposed and tested in this study can by used by researchers for developing quality management theory. This model may offer a flow chart to practitioners for effective quality management implementation. This study is a comprehensive review of the literature to develop factors of critical quality management practices and profitability, and unlike most previous studies, the proposed model is the first to illustrate the significance and direct positive impact of quality management practices on quality performance and profitability in an organization.