The Effects of People- and Technical- Oriented TQM on Productivity: The Mediating Role of Production Performanc

Abstract

The purpose this study is to examine the importance of incorporating both technical-oriented and people-oriented Total Quality Management (TQM) within the context of the Malaysian manufacturing industry with the aim of improving overall productivity within the industry. The study adopts a quantitative approach usingPearson’s correlation and Structural Equation Modeling (SEM) to investigate the relationships between technical- and people-oriented TQM, production performance and productivity on a sample of 169 senior production or TQM managers. The results demonstrated substantial evidence whereby technical-oriented TQM dimensions, namely ‘benchmarking’, ‘quality measurement’ and ‘process improvement’ exhibited significant impact on production performance and productivity. Furthermore, people-oriented TQM dimensions, namely ‘employee focus’, ‘customer focus’ and ‘supplier relations’ played a significant role in enhancing productivity. As such, the results of the study suggest that both TQM orientations are crucial for a successful adoption of TQM. The findings of the effect of TQM dimensions on production performance and productivity of Malaysian manufacturing organizations have been encouraging. Future studies should exploredeterminants of productivity that is in line with the business landscape of specific industries, in order to meet the growing demands of high-quality outputs.