Abstract
The methodology of the organizational learning and total quality management (TQM) in the industry is becoming crucial, but there are few empirical studies to investigate the relationship between organizational learning and TQM on business performance in non-life insurance industry. The purpose of this paper is to understand the integrated relationship between organizational learning and TQM as two sources of sustainable competitive advantage. The paper proposes several hypotheses related to the relationship among organizational learning, TQM and business performance. A survey method is used to collect empirical data from non-life insurance companies in Taiwan. In this study, 414 effective questionnaires are analyzed and structural equation modeling (SEM) is used to verify the research framework and hypotheses. The empirical findings indicate that: (1) Organizational learning has significant and positive effects on TQM, (2) Both organizational learning and TQM have significant and positive effects on business performance, (3) TQM fosters business performance and play a mediating role between organizational learning and business performance. Therefore, the study demonstrates that the model can integrate organizational learning and TQM practices and enhance business excellence in financial service organizations, and also extend the prior research and contribute to the existing body of literature.
Highlights
At the end of 1980s amid the trends of financial liberalization, internationalization and economy development, the insurance industries have vigorous growth year after year
The result of this study provides a more comprehensively theoretical and empirical foundation for understanding the integrated relationship among organizational learning, total quality management (TQM) and business performance
The findings suggest that the effect of organizational learning on business performance is indirect through the success of TQM
Summary
At the end of 1980s amid the trends of financial liberalization, internationalization and economy development, the insurance industries have vigorous growth year after year. According to Taiwan Insurance Institute (TII) reports, the combined market share of top five non-life insurers rose from 54.4% in 2006 to 61.0% in 2013 as a result of merger and acquisition among insurers, indicating a rising trend in market concentration with high competition. The non-life insurance industries sell intangible products and provide “risk management” as well as “service value”. It can be accepted that the blue ocean strategy for insurance business, by providing customers with diversified expertise and quality services, has become a crucial topic in present non-life insurance industry. The non-life insurance industry is a knowledge-based industry with its main products of insurance contracts, which are commitments supported by professional knowledge and service value. There is more need to draw on the organization‟s ability to learn and make non-life insurance companies to stay competitive in a rapidly changing environment in order to enhance firm‟s business performance
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
