Mediating role of quality performance on the association between organisational factors and competitive advantage

Abstract

Purpose The purpose of this paper is to provide an initial empirical insight into the mediating role of quality performance on the association between six specific organisational factors (top management support, employee involvement, employee empowerment, reward and recognition, training and customer focus) and competitive advantage. Design/methodology/approach A survey questionnaire was used to collect data from 179 garment organisations in a developing country, Bangladesh. Findings The results show that quality performance mediates the association between three specific organisational factors (top management support, employee involvement and reward and recognition) and competitive advantage. In addition, a fourth organisational factor, employee empowerment, exhibited a direct association with competitive advantage. Originality/value The findings provide managers of developing economies with an important insight into the critical role of quality in achieving competitive advantage. In line with the resources-based view, the findings suggest that managers should deploy their limited resources to focus on providing top management support for, encourage employee involvement in and provide adequate rewards and recognition in respect to quality initiatives.