TQM practices and knowledge management: a multi-group analysis of constructs and structural invariance between the manufacturing and service sectors

Abstract

The purpose of this study is to examine the differences in terms of the effectiveness of total quality management (TQM) practices between the Malaysian manufacturing and service firms in influencing knowledge management (KM) behaviours. A survey questionnaire was distributed to both manufacturing and service firms with 37.4% coming from the service sector and the rest from the manufacturing sector. Multi-group analysis of structural invariance was employed in this study to investigate the differences. The results obtained from the analysis did not show any significant difference between the two sectors in terms of: (i) construct validity, and (ii) the relationship between TQM practices and KM. Hence, the results obtained from this study confirmed that the chosen TQM dimensions are appropriate and relevant to manufacturing and service industries. This research was carried out based on self-reported questionnaires, and may have the limitations of response biases. Nevertheless, the analysis and findings warrant some attention from both practitioners and scholars as this study proposes that the six dimensions within the Malcolm Baldrige National Quality Award framework could contribute to KM. In terms of originality, this paper is considered as one of the pioneer empirical studies that present a comparative analysis by concurrently testing the TQM practices and its relationship with KM in the two sectors, which practitioners and scholars from other developing nations can emulate and examine. The construct validity and criterion validity are further confirmed in this research, which will add value to the TQM literature.