Affiliation:
1. Logistics Sciences Department, Business School, German Jordanian University, Amman 11180, Jordan
Abstract
Background: This paper revolves around a meticulous exploration aimed at discerning the impact of total quality management (TQM) and service quality (SQ) practices upon the financial performance (FP) of firms within the container shipping industry. Our pursuit extends further, delving into the intricacies of SQ as a potential mediating factor in the TQM–FP relationship. This distinctive study investigated six TQM practices in conjunction with five SQ factors, analyzing their impact on firm FP. Methods: This study used a quantitative research approach. Data were collected through a structured questionnaire from logistics specialists and experts in the shipping field. Results: The findings were interesting and showed that two TQM practices—managerial leadership and employee involvement—have a significant positive effect on SQ levels, and one SQ dimension, namely responsiveness, has the biggest and most significant effect on the FP of container shipping companies. Furthermore, SQ mediates the relationship between TQM and FP. Conclusions: This study provides a theoretical contribution by developing a conceptual model that elucidates the correlation between TQM practices and the degree of SQ on the FP of container shipping firms. Moreover, this study provides managers with a tool for identifying, prioritizing, and improving key TQM and SQ practices that contribute significantly to financial success.
Subject
Information Systems and Management,Management Science and Operations Research,Transportation,Management Information Systems
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