Proposed relationship of TQM and organisational performance using structured equation modelling

Abstract

Total quality management (TQM) has been considered as an infrastructural strategy in the operations management research field. It is one of the most recognised models for operational excellence besides lean operation, supply chain management, and technology management. Both manufacturing and service organisations tend to implement this strategy in order to maintain their competitive advantage. The purpose of this paper is to develop the conceptual model of TQM implementation in relation to organisational performance. The authors have reviewed the literature on TQM and organised the paper along two main themes: the evolution of TQM considered as a set of practices, and its impacts on organisational performance. Two research questions are proposed in order to re-validate TQM constructs: (1) Is the set of practices associated with TQM valid as a whole? (2) What performance measures should be considered to exhibit the effectiveness of its implementation?