Total Quality Management Lean Practices and Firm Performance: Integrated Approach Using MBNQA Criteria in the Thai Automotive Industry

Abstract

Abstract In an increasingly competitive global automotive landscape, the strategic integration of Total Quality Management (TQM) and Lean Practices (LP) has emerged as a crucial determinant of operational excellence and sustained organizational performance. Grounded in empirical evidence from the Thai automotive sector, this study explores the intricate synergies between TQM with Malcom Baldrige National Quality Award (MBNQA) dimensions, lean implementation, and firm performance. This study employs the quantitative research method, where the measurement scales for each construct were adopted from the literature and reviewed by academics. Data were collected from 854 manufacturing firms in Thailand through a mail survey method. This study applied a two-step structural equation modeling (SEM) process. The findings reveal a robust direct effect of TQM (leadership, strategy planning, customer and workforce focus) on firm performance, underscoring its pivotal role. Notably, TQM also exhibited a substantial indirect effect on business performance, mediated sequentially through lean practices including continuous flow, 5S, and total preventive maintenance. Lean practices similarly demonstrated significant direct and indirect effects on firm performance. Collectively, the combined effects of MBNQA and lean practices on firm performance was also observed, substantiating their complementary contributions. These findings hold significant implications, both from an academic and a practical standpoint. From a theoretical perspective, this research enriches the discourse by providing empirical insights into the mediating roles of lean practices, elucidating the paths through which TQM's performance-enhancing effects can be transmitted. Concurrently, the magnitude of the impact these practices have on firm performance underscores their practical relevance, and insights derived from this study could play a key role in guiding automotive firms and suppliers to align critical components to drive performance excellence.