Country and sector effects on the relationships among TQM practices and key performance measures

Abstract

Purpose The purpose of this paper is to analyze if and how country- and sector-related contingency factors affect the implementation of TQM practices and various performance measures within a TQM-performance relationships model framework. Design/methodology/approach The authors used data from 156 firms in Turkey and 132 firms in North Cyprus (NC) to test the model relationships by utilizing multiple group structural equation modeling (SEM). Findings The study finds support for both the universal and the contingency argument within the context of country and sector analyses. Although our findings suggest no differences across the two countries, the authors find evidence for differences across sectors in terms of their TQM practices and performance outcomes. In the case of NC firms, the direct effects of TQM on human resource results and customer results constituted the missing linkages in the performance excellence framework. Research limitations/implications This study suffers from the same limitations common to all survey research. However, it contributes strongly to the limited TQM contingency research by providing new findings and insights. This study must be replicated in different countries and other types of contextual factors must be used to determine if and how they moderate the model relationships. Other theories are also needed to better explain some of the relationships. Practical implications There needs to be a more holistic approach to quality management and increased institutional support for quality initiatives in developing countries. Through proper alignment and integration of their different components, organizations can realize maximum improvement in their business results. Understanding the sector level contingencies before implementing a performance excellence model is also recommended. Social implications The study has several social, economic and policy implications, including the need to improve employees’ work environment to improve their lives and prevent brain drain; to pass legislation to improve lax consumer laws; to found quality institutes to promote the education, training, qualification and professional development of employees working in the various sectors of the economy; and for government and employers to realize the importance of valuing stakeholders and delivering value and results to them to ensure long-term success. Originality/value This is one of the few studies in TQM contingency research that tests various relationships among TQM and business results by using country and sector as contingency factors.