Total quality management: An empirical test for mediation effect

Abstract

This study reviews empirical studies of total quality management (TQM) and has identified four different approaches of examining TQM practices-performance relationships. It reveals that a consensus on how TQM practices affect quality performance has yet to emerge. Based on their findings, some researchers conclude that 'supportive' practices can bring quality improvement, while some indicate that 'core' practices do. To add to the complexity, some support both. The current study seeks to examine the relationship between supportive and core TQM practices and their direct and indirect effects on quality performance. A mediation model was hypothesized and tested by hierarchical multiple regression based on a sample of 25 electronics companies in Hong Kong. In general, the survey study gives further support for the interdependent nature of TQM practices. The results showed that the effect of training and employee relations on quality performance might be largely transmitted by certain core quality management practices. In particular, it suggests that core TQM practices mediate the effect of supportive TQM practices on quality performance when the practices are taken as two integrated factors. Both researchers and practitioners are advised to consider the interdependencies of supportive and core factors when assessing the impact of any new technology or new management technique on an organization.