European Foundation For Quality Management Excellence Model Research Articles

A Study on Working Capital Management in Automotive chassis Manufacturing Pvt Ltd

The effective management of working capital is crucial for all companies. Key elements of working capital management include days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), and cash conversion cycle (CCC). A study conducted on 332 Czech companies, 20 of which were certified by the EFQM (European Foundation for Quality Management) Model, investigated how these components of working capital management impact a company's profitability. Two regression models were utilized for testing - pooled regression and maximum likelihood estimation (MLE). The results indicated that all components of working capital management have a negative effect on profitability. Interestingly, the interaction between EFQM certified companies and working capital components had a positive impact on profitability, suggesting a beneficial relationship between these components and profitability for certified firms. However, it was found that receiving a quality certificate/award from the EFQM Excellence Model actually decreased a company's profitability. Keywords Working capital, Firm profitability CCC, EFQM, Czech firms

Human Capital Efficiency and Firm Performance of Quality-Certified Firms from EFQM Excellence Model: A Dynamic Panel Data Study

Abstract Purpose The study’s main purpose is to investigate the impacts of human capital efficiency (HCE) on the firm performance of non-certified and quality-certified firms from the European Foundation for Quality Management (EFQM) Excellence Model. The study also examines the relationship between firm performance and quality-certificates from the European Foundation. Design/methodology/approach By using a sample of 282 non-certified and 22 quality-certified firms from 2017 to 2021, the current study employed a two-step system generalized method of moments (GMM) estimation to analyse the empirical data. The dummy variable is used to examine the relationship between quality-certificates and firm performance. The dummy interaction term is employed to quantify the impacts of HCE on the firm’s performance for quality-certified firms. Findings The results revealed that quality-certificates and firm performance have a positive relationship. Quality-certified firms perform better and earn more profits than non-certified firms. HCE has a positive impact on firm performance for both types of firms. Moreover, the quality-certified firms utilize HCE in an efficient way to earn more profits compared to the non-certified firms. Originality This is the first study to use a comprehensive analysis to emphasize the HCE for non-certified and quality-certified firms separately. The effects of quality-certificates on firm performance in the context of HCE are also being highlighted for the first time in this research. Practical implications The current study’s findings are fruitful for academics, managers, researchers, policymakers, and other firm management. The findings will encourage the management of the firms to implement the total quality management (TQM) approach within their firms.

Evaluation of Quality and Equality in Education Using the European Foundation for Quality Management Excellence Model—A Literature Review

Purpose: The purpose of this study was to determine the effects of the European Foundation for Quality Management (EFQM) Excellence Model on education and its contribution to ensuring high-quality education equality. Design/Methodology/Approach: A systematic literature review was conducted based on data from three academic publishers (Taylor & Francis, Emerald, and Elsevier Science Direct). Of the 69 journal articles, 61 were published between 2003 and 2023 and documented the results of the EFQM quality tool, and 8 articles were removed. Findings: The study highlights the results of applying the EFQM Excellence Model in the educational sector. Based on the bibliographic review, the feasibility of using the model in primary, secondary, and tertiary education is identified. We examine the findings related to using the model to ensure equality in high-quality education and the challenges faced by educational systems, with the ultimate goal of meeting student expectations. Research limitations/Implications: An important limitation is that the data were only drawn from three major publishers and the authors did not have access to all the relevant databases, since the search for articles was carried out in English only. The search for articles was limited by the keywords, as the EFQM Excellence Model was originally designed for the private sector. Practical implications: The results and limitations recorded in the study and the presentation of the 88 articles motivate academic researchers to conduct further study and fill the gap left by the limited number of publications on the application of the EFQM Excellence Model in the educational sector. Originality/Value: The EFQM Excellence Model has not been widely implemented in the high-quality educational sector and the existing literature reviews are limited. More research in the field of education is needed to determine the contribution of the excellence model to the evaluation of high-quality education.

Determinants of working capital management for noncertified and certified firms from the EFQM Excellence Model

The study’s main aim is to examine the important determinants that affect working capital (WRC) for non-quality-certified and quality-certified firms from the European Foundation for Quality Management (EFQM) Excellence Model and to explore the impacts of quality certificates on WRC. The study is conducted using the secondary data of 328 firms, including 21 quality-certified firms. The secondary data were retrieved from the Albertina database from 2017 to 2021. The two-step system generalized method of moments (GMM) estimation was employed to test the hypotheses. The empirical findings indicate that firm size and operating cash flow have a positive impact on WRC. On the other hand, financial leverage and profitability have a negative relationship with WRC. The quality certificates from the European Foundation have a positive impact on both types of WRC. The findings of this study will be beneficial to the firms’ directors, managers, academics, and leaders to sustain the optimum level and forecast future WRC requirements.

The EFQM excellence model, the knowledge management process and the corresponding results: an explanatory and predictive study

This study aims to analyse the relationships among the EFQM model, the knowledge management (KM) process and the corresponding results. It also seeks to analyse the predictive power of the phases of the KM process with regard to organisational results. The sample under study is composed of 113 Spanish organisations that feature some kind of Excellence Recognition System granted by the European Foundation for Quality Management (EFQM). This paper uses partial least squares (PLS) path modelling to test and validate the research model and the proposed hypotheses. In addition, thorough analyses are conducted to assess the model’s predictive performance. The results show that organisations that use the management framework proposed by the EFQM model implement the phases of the KM process efficiently. Moreover, the synergies resulting from the simultaneous implementation of the EFQM model and the KM process contribute to improving the corresponding results. Also, the predictive power of the phases of the KM process is confirmed in terms of their ability to anticipate the results that the organisation will be able to achieve with respect to customers, people, society and key business factors. Finally, this study provides empirical evidence of the direct and indirect relationships among the EFQM model, the KM process and the corresponding results. In addition, the paper identifies out-of-sample prediction as an integral element of the evaluation of the model using PLS-SEM and as a way to evaluate its practical relevance, since it allows us to predict results.

Working capital management efficiency: a study of certified firms from the EFQM excellence model

Abstract Working capital management (WCM) plays an important role in a firm’s value, financial risk, and firm profitability. WCM requires continuous management to maintain a certain level of the numerous components of working capital (WC). The main aim of this study is to estimate the efficiency of WCM of certified firms from the European Foundation for Quality Management (EFQM) Excellence Model. The study also tests the speed to attain each firm’s target level of efficiency using industry norms as the target level of efficiency. The financial data of the Czech certified firms from the manufacturing sector was derived from the CRIBIS database from 2015 to 2020. The efficiency of WCM is measured by utilization index (UI), performance index (PI), and efficiency index (EI). The findings revealed that Gerresheimer Horsovsky Tyn Spol., Miele Technika, and Koyo Bearings Česká Republika efficiently managed WC, as their indexes are greater than 1. The number of efficient firms was the lowest in 2020 based on the year-wise comparison which means that the efficiency of WCM of the firms was severely affected by the coronavirus pandemic (COVID-19). All the β values are lower than one, which signifies that none of the selected firms outperform the manufacturing industry as a whole. The findings of the current research are useful to the management of the firms and recommends that they give importance to the different indexes of WCM and efficiently use the current assets to generate sales.

Bridging organizational performance gaps using the EFQM excellence model

The purpose of the article is to develop knowledge from applied research that examined a real-time application of the European Foundation for Quality Management (EFQM) model in Isfahan Regional Electric Company (IREC). The study objectives include identifying strengths and areas requiring improvement and stimulating a quality culture to address them. The research was conducted in three stages: (1) formation of a focus group to analyze the gap between the desired situation and the current state of IREC, (2) distribution of questionnaires among experts inside and outside the company, and identification of the importance of each factor causing a gap and (3) reestablishment of the focus group to provide strategies to close the gap between the current and desired states. The key findings indicate that (a) employee management, (b) social and customer impact, (c) key performance results, and (d) partnership and resources, have significant gaps with the desired situation. Improvement strategies were recommended to bridge these gaps and improve the IREC performance measurement and evaluation system, its strengths, and areas for improvement. This paper contributes to quality and performance management bodies of knowledge. Our organizational framework and associated contributions serve as a managerial resource.

Forecasting the Future Excellence: 30 Years of Evaluating Service Organizations in Slovakia

The aim of this paper is to model and interpret the results obtained from the assessment of the Level of Excellence of Slovak service organizations using the criteria of the European Foundation for Quality Management (EFQM) excellence model. The Gompertz logistic function is effectively employed to fit the incremental improvement and predict the values of future Levels of Excellence. The EFQM model is usually used to improve organizational development and performance. The study focuses on the problem of the slow growth or even stagnation of Slovak service organizations towards Excellence. The questionnaire method was used to assess the Level of Excellence of the selected organizations, and the approach of measuring efficiency as a ratio of results and enablers was used to evaluate the organization’s ability to transform inputs into outputs. Data were collected from 30 service organizations over a period of 20 years. The first finding of the study is the demonstration of the applicability of the Gompertz function to model the evolution of the Level of Excellence. The accuracy of the model is very high, and this predisposes this function to be used to forecast the scores of organizations over time. Examining efficiency yielded a second finding, that organizations were failing to capitalize on the effort put into translating it into results. After the first few years of growth, efficiency stagnates and then even declines. This suggests that the application of the original EFQM excellence model has reached the end of its ability to improve the effectiveness of organizations as a whole. Individual firms may have been growing or declining, but the average service score across the country had no longer the capacity to improve anymore.

Marketing Logistics in Reaching Organizational Excellence: Mediating Role of the European Foundation for Quality Management Excellence Model

This study is novel because it gathered between constructs of marketing logistics and reaching organizational excellence according to variables of the EFQM model. This hybrid gathering between constructs was not presented before – as far as the researcher knows – and it may help marketers and marketing managers in supporting marketing department efforts through the aid of excellence models, which may have the ability to increase the success factors of the marketing department. The current study aimed at examining the influence of marketing logistics dimensions (such as customer profiling, goods distribution, transportation, packaging & information, customer service, and reverse logistics) on organizational efforts in order to reach organizational excellence through the mediating influence of the European Foundation for Quality Management (EFQM) excellence model. The study adopted the quantitative approach through a questionnaire distributed to a total of 189 marketing managers or their representative within 591 food manufacturing and packaging organizations in Jordan. Through AMOS and SPSS, the study results accepted the central hypothesis. Therefore, it appeared that marketing logistics could aid organizational efforts to reach organizational excellence through the mediating influence of the EFQM excellence model. Among variables of marketing logistics adopted, the study referred that customer profiling was the most influential in supporting organizational efforts to reach excellence, followed directly by customer satisfaction. It indicated that all internal operations directed towards customers might help deliver the organization to excellence. In terms of mediating influence of EFQM excellence mode, the study indicated that marketing logistics unite with EFQM to support all sensitive areas of marketing strategies within an organization, which can develop results of EFQM efforts through supporting enablers. The study recommended the need for food manufacturing and packaging organization in Jordan to focus more on good distribution and transportation of their goods based on profiling their customer and locating high-demand areas.

Measuring Territorial Social Responsibility and Sustainability Using the EFQM Excellence Model

Sustainability and social responsibility are goals that are currently aimed for by companies, entities and institutions as well as national and international agendas. In a globalized and highly connected world, the achievement of both goals must be pursued. This means more than mere compliance with agendas approved by national and international agencies; it means that all of these entities, each in their own field and area of responsibility, become co-responsible for their own social, environmental and economic situation. Because of this co-responsibility, their decisions and activities must contribute to the deployment of a jointly responsible and sustainable model of innovation, development and social transformation. In this context, this article aims to propose a model based on the principles of total quality management that will make it possible to explore the degree of territorial social responsibility and sustainability linked to the companies and institutions of a territory. The validity of this model is based on the application of the model of the European Foundation for Quality Management (EFQM) and its applicability to all types of organizations. The empirical validation was carried out in the specific region of Girona (Spain) with the participation of the University Social Responsibility (USR) Chair of the University of Girona (UdG).

Should the EFQM Excellence Model be Adapted for Specific Industries? A Restaurant Sector Example

Abstract As the scores in the current European Foundation for Quality Management (EFQM) excellence model are the same for all industries, the accuracy of the model has been questioned. Our objective is threefold: 1) to confirm the need to adjust the EFQM model, using the restaurant industry as an example; 2) to ensure the new scores from the restaurant experts are consistent and reliable through the Kruskal-Wallis test for intergroup consistency and Kendall’s W for interexpert reliability; and 3) to use the fuzzy analytic hierarchy process to give each attribute and sub-attribute a new, accurate score. Among the restaurant attribute and sub-attribute scores, Customer Results scored 190 points instead of 150 points, and Processes, Products & Services scored 140 points instead of 100 points in the current model. The findings show that the new scores differ substantially from the current EFQM model. We then argue that its evaluation scores should be modified by industry.

A Novel Excellence Model of the ICT Industry: Case Study on Telecommunications Backbone Network of Iran

Todays, Information and Communications Technology (ICT), as one of the most effective factors of the advancement in all the aspects such as governance, security and risk, economics and technology, which is among the industries rapidly growing and developing. This paper examines the specific criteria and standards of ICT area for improving the quality of the services of the Telecommunications Backbone Network of Iran (TBNI). The research was done through the two methods of data collection, library and the field study. European Foundation for Quality Management Excellence Model (EFQM) was selected as the base model and with full attention to the specific requirements of ICT industry and due to adapt this model from the viewpoints of the security and risk, governance and economic, a novel integrated excellence model of TBNI was developed and customized. To achieve the highest level of reliability and internal coherence of each criterion, based on expert opinion polls, sub-criteria was categorized and analyzed in several stages using the factor analysis approach. The causal relationships and the influence of the criteria of this model on each other were investigated and the weights of each criterion and sub-criteria, using the structural analysis and shannon entropy methods, were determined. The self-evaluation of TBNI was systematically carried out and major opportunities for the improvement had been identified. Results showed that the establishment of this model had led to an improvement in a quality of services provided by this network and the products of all organizations that use any services of TBNI.

AN INVESTIGATION INTO ISSUES IMPEDING HIGHER EDUCATION EFFECTIVENESS IN PUBLIC UNIVERSITIES

The effectiveness of public universities in Nigeria has continued to generate discussion and is a matter of urgent attention in achieving the mission and vision of the higher education system. This study was carried out to investigate the issues obstructing the effectiveness of public universities in Nigeria. The conceptual framework was adapted from the European Foundation for Quality Management Excellence model (EFQM). This study adopted a generic qualitative design to collect data through semi-structured interviews from eight participants, including the deputy vice-chancellor, deans, head of departments, and lecturers that were purposively selected. Data collected were analysed using thematic analysis with Nvivo (version 10). The findings of the study revealed that leadership, academic and administrative issues, contextual issues and funding are the major factors affecting the effectiveness of public universities in Nigeria. Therefore, for a university in Nigeria to be viewed as a hub of developing nations that strive to meet the expectation of the society, the identified hindrances must be thoroughly interrogated and resolved.

Use of the EFQM excellence model to improve hospital pharmacy performance.

Quality management systems are widely used to improve the quality and efficiency of healthcare services. However, evidence regarding the value of the European Foundation for Quality Management (EFQM) model in improving the performance of hospital departments is lacking. To describe the value of the EFQM model as a quality framework for improving the performance of a hospital pharmacy department (PD). A case study describing the development of the Enablers' criteria of the model and the results achieved. PD in a tertiary-care teaching hospital of the Madrid Public Health Service (Spain). Four self-assessments were conducted using the questionnaire "Perfil" during the period 2008-2017. A quality improvement plan was developed on the basis of the results of each self-assessment. A balanced scorecard was used to track progress. Improvement in quality management was externally evaluated by the Spanish Management Excellence Club in 2010, 2013, and 2017. Change in the scores obtained in the external assessments, the quality improvement initiatives implemented for each Enabler's criteria, and the results of key performance indicators. The EFQM was a useful framework for self-assessment and a good system for identifying improvement initiatives. The model progressively improved the services provided for patients, the safety and efficiency of pharmacotherapy, productivity of the PD, and customer and staff satisfaction. The external assessment scores exceeded 300 points in 2010, 400 points in 2013, and 500 points in 2017. Scores for all of the criteria progressively improved, particularly in 'people'. The EFQM was a practical tool for improvement of PD performance, especially in areas such as strategic planning, people management, and innovation. The main difficulties were the lack of decision-making capacity in relevant areas and benchmarking with other PDs.

Development of a market-oriented EFQM excellence model for analyzing the implementation of quality management in developing countries

The European Foundation for Quality Management (EFQM) Excellence Model is popular to measure service quality. However, to determine the enablers of EFQM's current implementation level across the construction industry, it should be adjusted for different development demands and interests to be useful in different environments. This study used the judgment sampling method to distribute 1250 questionnaires containing the EFQM results and DECMOR scale. The average score methods and the entropy weight method were used to analyze the collected data. This article presents the Market Oriented EFQM (MOEFQM) model, that combines the Developing Country Market Orientation (DECMOR) scale and Growth Management Model (GMM) and the EFQM model to analyze the overall implementation level of market-oriented quality management in the construction industries of developing countries. The model is demonstrated in a case study of 120 construction firms in Xi’an, Beijing and Shanghai, China, concluding that the current market-oriented growth of the firms is still in the second phase of quality management and identifying the main influencing factors that need to be prioritized in embarking on the next phase of development. The framework has the potential for analyzing the main factors influencing general growth in quality management in other industries and localities.

An exploratory study of the results of the implementation of EFQM in private Spanish firms

PurposeThe implementation of business excellence models is becoming a key competitive priority for companies, but the type of results they obtain by implementing such models and the importance of such results remain open issues. The purpose of this paper is to clarify the results obtained by companies that implement the European Foundation for Quality Management (EFQM) excellence model, with a focus on their importance and nature.Design/methodology/approachAn empirical study was conducted in 68 Spanish firms that were immersed in the process of implementing EFQM. The methodology consists of a descriptive analysis and factor analysis in order to determine which groups of results are the most important. Finally, clusters of firms are analyzed to establish their profile in relation to these groups, using cluster analysis.FindingsThis study shows that the main results of the implementation of EFQM are an improvement in the external image of the company and an increased efficiency of internal processes. In addition, the results can be grouped into internal results, human resources results and economic results, with the first group being the most important. Finally, the results show that there are three groups of firms, categorized according to their results orientation: highly results-oriented, moderately results-oriented and minimally results-oriented.Practical implicationsCompanies are in a better position to anticipate and solve the problems that may arise during the implementation process if they understand the results of the implementation of EFQM, along with the motivations for and barriers to the implementation. Also, this research shows that the bodies promoting and motivating quality should make a special effort to emphasize the importance of non-financial results in companies that implement EFQM.Originality/valueThis paper extends the knowledge in the field of business excellence models by developing an instrument to measure implementation results from the perspective of quality managers who were specifically appointed to lead the implementation of the EFQM excellence model in companies.

Drivers and internalisation of the EFQM excellence model

PurposeAlthough the European Foundation for Quality Management (EFQM) Excellence Model has been widely adopted throughout Europe, a thorough examination of the factors that contribute to the internalisation of the model (i.e. a substantive adoption) has been neglected in the literature. The purpose of this paper is to present a model that analyses the drivers of the real internalisation of the EFQM excellence model, with a focus on the role of motives for adoption, and appraisal and compensation systems.Design/methodology/approachAn empirical study was carried out based on a sample of Spanish organisations that had been awarded EFQM recognition. Structural equation models, cluster analysis and ANOVA were used to examine the research questions.FindingsInternal motives concerning the creation of a participative style are the main driver of internalisation. Moreover, having an appraisal system-oriented towards the development of employees helps the substantive adoption of the EFQM model. These findings reinforce the importance of the soft elements of the EFQM model.Originality/valueThis study enhances evidence about the motives for adoption and their influence on the internalisation of the EFQM model. It analyses internalisation in a novel context, EFQM recognised organisations, and contributes to the debate about the efficacy of the EFQM model to performance improvement, by unveiling the factors that could foster the internalisation of the model within the organisational routines.

A modified EFQM Excellence Model for effective evaluation in the hotel industry

The objective of this study is to develop a modified European Foundation for Quality Management (EFQM) Excellence Model with new scores particularly for the hotel industry by using the fuzzy analytic hierarchy process, a multi-criteria decision-making method. Application of the EFQM Excellence Model for self-assessment is popular, but the evaluation scores underpinning the current EFQM Excellence Model are unchanged for all industries. This affects the accuracy and effectiveness of evaluation. The findings indicate that new Enablers receive a score of 450 points, and new Results receive a score of 550 points, and the deviation is substantial from the conventional EFQM Excellence Model, under which Enablers and Results each score 500 points. Surprisingly, the new Customer Results in the modified EFQM Excellence Model earn a score of 230 points; this indicates that the customer domain is the critical success factor for the hotel industry. The new score of each indicator is specified; the limitations and further study are also discussed.

Assessment and improvement of organisational social impact through the EFQM Excellence Model

Total quality management (TQM) and corporate social responsibility (CSR) are relevant management philosophies and frameworks that organisations use to help generate a sustainable competitive advantage. This contribution aims to study the influence of TQM social factors (leadership and human resource) and TQM technical and strategic factors (Strategy-Resources management and process management) with social results. The hypotheses proposed in our research model are tested on a sample of 116 Spanish companies, with experience in TQM through assessments by means of the European Foundation for Quality Management (EFQM) Excellence Model. The partial least squares structural equations modelling (PLS-SEM) approach was used to test the research model. Our findings indicate that the EFQM Excellence Model is a reliable and valid framework with which to measure and improve the organisational social impact. The synergies and the indirect effects between the TQM critical factors, in the EFQM Excellence Model framework, constitute a management system. Moreover, the TQM social factors and Strategy-Resources management factors determine the efficiency with which an organisation manages its key processes, which have a significant impact on the social results that organisations are capable of achieving.

What is the effect of size on the use of the EFQM excellence model?

PurposeBy contrasting a contingency with a universal approach to business excellence models (BEMs), the purpose of this paper is to investigate the effect of size on the use of the European Foundation for Quality Management (EFQM) model by organizations that were officially “Recognized for Excellence” in Spain. It considers the potential differences between large organizations and SMEs on the level of adoption of EFQM criteria and on the impact that enablers-criteria may have on key performance measures.Design/methodology/approachThis study uses actual sub-criteria and criteria scores attained by organizations in their assessment for EFQM recognition. Scores of a population of 216 organizations are analyzed via analysis of variance, factor and structural equations models.FindingsAlthough there are some criteria in the EFQM model that appear to be universally adopted irrespective of size, the empirical analyses indicate that size may shape the adoption of other criteria and the impact that enablers can have on results, thus supporting a contingency perspective. Moreover, the findings call for the revision of the relationships embedded in the EFQM model.Originality/valueIn contrast to most previous research, which relied on surveys of managers’ perceptions, this study uses the actual scores achieved by organizations in their assessment for EFQM recognition. It addresses the effect of size on the whole model, which so far has been neglected in the literature. All in all this study contributes to the literature on contingency approaches to best practices, and more specifically to BEMs. To the practitioner, it provides guidelines for addressing perceived performance gaps in their pursuit of recognition for excellence.