Establishing a link among total quality management, market orientation and organizational performance

Abstract

PurposeThis paper presents findings of a survey on total quality management (TQM) practices adopted by the Indian manufacturing organizations. The purpose of this paper is to test and establish the relationship between TQM practice and organizational performance (OP). This paper also aims to examine the impact of TQM practices on OP of Indian manufacturing organizations.Design/methodology/approachA survey questionnaire was developed and randomly distributed through e-mail to senior managers of 275 Indian manufacturing organizations. About 230 received questionnaires were used for data analysis. Response rate was 83.63 percent. In particular, hypotheses were developed to examine the effect of TQM on the OP of the manufacturing organizations. Cronbach's alpha reliability of questionnaire was analyzed using factor analysis. Rigorous literature review is enabled to construct structural measurement model, formulation of testable hypothesis and operationalization of constructs.FindingsIt is discovered that TQM has a positive and significant effect on the market orientation (MO). Similarly, the results showed that MO has a positive and significant effect on the OP. With regard to the relationship between TQM and OP, this study found that TQM significantly and positively affects the OP of Indian manufacturing organizations.Originality/valueThis study is a rare and unique empirical study that establishes a link among TQM, MO and OP. The study fulfills need of quality management practice and offers practical implications to Indian managers and motivates further research on the relationship between TQM and OP in Indian manufacturing organizations.