The Effect of Quality Management Practices on Organizational Performance in Jordan: An Empirical Study

Ali Bakhit Jaafreh,Abedalfattah Z Al-Abedallat

doi:10.5430/ijfr.v4n1p93

Ali Bakhit Jaafreh, Abedalfattah Z Al-Abedallat

Open Access

https://doi.org/10.5430/ijfr.v4n1p93

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Abstract

Quality management practices (QMPs) have been proposed to improve organizational performance and received substantial attention in recent researches. This study empirically examines the extent to which QMPs and Organizational performance are correlated and how QMPs impacts on organizational performance. In this study, a QMPs framework is developed according to a comprehensive literature review and represents a relationship between QMPs and Organizational performance through examining the effects of the six QMPs constructs on Organizational performance. Questionnaire using for collected data from the banking sector in Jordan and tested proposed model. The results of this study supported a model proposed.

Highlights

In response to increase global pressures – customers’ demanding superior quality of products and services, the global marketplace has become very competitive, many organizations have adopted practices such as total quality management (TQM), and benchmarking
The results show that all variables are positive correlation but the results show that the four out of six variables are highly positively correlated with the organizational performance (OP) but process management and supplier quality are a weak positive correlation and not significant with OP
The correlation value suggests the four out of the six Quality management (QM) dimensions are significantly correlated to the OP and the rest are supplier quality and process management is not significantly correlated to OP

Summary

Introduction

In response to increase global pressures – customers’ demanding superior quality of products and services, the global marketplace has become very competitive, many organizations have adopted practices such as total quality management (TQM), and benchmarking. Many scholars claim that managers can implement TQM in any organization in any sectors of the economy such as manufacturing, service, education, and government (Dean & Bowen, 1994), and that it generates improved products and services, more satisfied customers and employees, reduced costs, improved financial performance, enhanced competitive, and increased productivity (Zu, 2009; Kaynak, 2003; Deming, 1986). Many scholars study identifies relationships among QM practices and examines the effects of these practices on performance, but the finding inconsistencies and conflicting results among scholars. These findings suggest that a positive relationship exists between the QM practices or TQM and firm performance and between other variables such as product quality, product and process performance, perceived quality, quality drivers, reduced cost, more satisfied customer and improve financial performance. A large body of literature highlights the positive impact of QM practices on performance (Zu, 2009; Kaynak, 2003; Ahire, Golhar, & Waller, 1996; Kaynak & Hartley, 2005; Sila & Ebrahimpour, 2005; Anderson, Rungtusanatham, Schroeder, & Devaraj, 1995; Flynn, Schroeder, & Sakakibara, 1995; Ho, Duffy, & Shih, 1999; Prajogo & Sohal, 2003; 2006; Terziovski & Samson, 1999; Choi & Eboch, 1998 ), but others have not found a relationship between QM practices –TQM- and performance (Nair, 2006; Agus, 2003)

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