The Impact of TQM Critical Success Factors on Business Performance. The Mediating Role of Implementation Factors in Linking Enabler and Instrumental Factors

Abstract

Total Quality Management (TQM) is a management philosophy focused on customer satisfaction and continuous improvement, and positively related to organizational performance. TQM implementation programs sometimes fail, causing a loss of resources, distrust in top management and a lack of the outcomes expected. This chapter examines the relationship between the implementation of Critical Success Factors and Business performance. For a better understanding, we have divided these factors into three constructs, hypothesizing causal relationships between them and how they affect business performance. We use data collected from a sample of 113 Spanish organizations. Three hypotheses were tested simultaneously using Partial Least Squares, a variance-based Structural Equation Modeling technique. The results support the existence of a mediating role played by implementation factors in ties between enablers and instrumental factors. Our research findings provide practical insights for managers in order to prioritize those critical factors on which they focus their actions to enhance business performance.