Does the isomorphic implementation of the tqm philosophy effectively lead to the simultaneous attainment of legitimacy and efficiency targets?

Abstract

Abstract Drawing on the new institutional theory and the resources based view of the firm (RBV), this study tries to shed light upon the idea that isomorphic organizational changes seek legitimacy over efficiency. Using data from 102 Spanish companies and employing partial least squares, a variance-based structural equation modeling technique, this study concludes that both objectives are achievable simultaneously when firms implement total quality management (TQM) as an integrative stream of both theories. Furthermore, empirical results reveal that: (i) institutional pressures (IP) condition significantly the implementation of TQM, (ii) TQM exerts a double mediating role in the IP-legitimacy and IP-efficiency relationships, and (iii) both efficiency and legitimacy objectives are achieved by means of TQM. However, we observe a dual phenomenon: (i) while we find a significant positive effect of TQM on overall performance (OP) via efficiency and (ii) we failed to find support for the TQM-OP link via legitimacy.