The relationship between total quality management practices and their effects on bank’s technical efficiency

Abstract

Purpose – The purpose of this paper is to investigate the relationship between total quality management (TQM) practices and banks’ technical efficiency. Design/methodology/approach – A survey questionnaire was constructed to measure TQM practices and quantitative data were collected to measure banks’ technical efficiency. The respondents were required to indicate their degree of implementation of quality management practices in the survey instrument. Organizational performance was indicated by quantitatively measuring banks’ technical efficiency using data envelopment methodology. Findings – The study found that there is a relationship between TQM practices and organizational performance, as measured by banks’ technical efficiency. Furthermore, the TQM practices of human resources management and technical systems would appear to be important practices in impacting banks’ technical efficiency. Research limitations/implications – This study only considered commercial banks registered in the first market of ...