Abstract
Article history: Received December 28, 2013 Accepted 28 March 2014 Available online April 3 2014 This paper presents an empirical investigation to study the impact of total quality management (TQM) as well as market orientation on organizational performance on some Iranian small and medium enterprises (SMEs). The study designs a questionnaire in Likert scale and distributes it among some experts in city of Shiraz, Iran. Using structural equation modeling, the study determines that three components of market orientation including intelligence generation, intelligence dissemination, and responsiveness through TQM influences on organizational performance components including financial and non-financial performance as well as efficiency. In addition, TQM components including training, process management, supplier quality management, employee relationships, quality of data and reports and top management commitment influence positively on organizational performance in SMEs. © 2014 Growing Science Ltd. All rights reserved.
Highlights
Organizational performance is normally influenced by various factors such as human resources, good supply chain management, etc. and there are various studies to investigate the relationship between organizational performance and other important factors (Li et al, 2006, 2008; Liao et al, 2011)
Market orientation maintained the mediating effect between total quality management (TQM) and hotel performance and external environment factors played a moderator between TQM, market orientation and hotel performance, especially when external environment factors bigger changes were going to help to construct relationship with customer, to enhance hotel performance and further to achieve the success for hotel industry
This paper presents an empirical investigation to study the impact of total quality management (TQM) as well as market orientation on organizational performance on some Iranian small and medium enterprises (SMEs)
Summary
Organizational performance is normally influenced by various factors such as human resources, good supply chain management, etc. and there are various studies to investigate the relationship between organizational performance and other important factors (Li et al, 2006, 2008; Liao et al, 2011). Demirbag et al (2006) determined the effect of market orientation (MO) and implementation of total quality management (TQM) on organizational performance of small and medium enterprises (SMEs). Raju et al (2011) investigated MO in the context of SMEs They performed an in-depth review of the extant literature to develop a conceptual framework by exploring the major antecedents of MO, the MO–Performance relationship, and the key mediators and environmental moderators of this relationship. Bayraktar et al (2009) examined a framework detecting the causal links among supply chain management (SCM) and information systems (IS) practices, SCM–IS related inhibiting factors and operational performance in Turkey. They investigated the moderating impact of SCM and IS related enabling factors on the relationships. The adoption of ‘operational recipes’ of market orientation by the production and operations function appeared to improve organizational performance regardless of the existence of any cultural support for market orientation
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