The relationship between the extent of TQM practices and the importance on business performance: a survey in Malaysia

Ahmad, Md Fauzi and Zakuan, Norhayati and Jusoh, A. and Yusof, S. M. and Hisyamudin, MNN and Takala, Josu (2013) The relationship between the extent of TQM practices and the importance on business performance: a survey in Malaysia. In: Proceedings of the 2nd International Conference on Advanced Manufacturing (ICAM 2013) , 12-13 December 2013, Ayodya Resort Bali, Indonesia .

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Abstract

In today’s highly competitive market, business performance is one of the critical factors for companies to survive in the global marketplace. The concept of total quality management (TQM) has been developed as a result of intense global competition for improving business performance. Many previous studies discussed about TQM and the extent of the TQM practices, however, almost previous works were given less emphasis on the relationships between the extent of TQM factors and it's importance to business performance based on the individual factors in TQM, which is identified as theoretical gap. The main contribution of this study is to identify the most effective TQM factors based on the level of practices and it's importance to the business performance. A questionnaire was prepared and sent to 1500 companies from the automotive industry in Malaysia which gave a 21.9% response rate or 319 respondents. This study reveals that perception of ranking based on the practices is different compared to ranking based on it's importance to business performance. Furthermore, Kendall tau correlation test for rank analysis shows that correlation coeffient. r is -0.333 between rank of practices and its importance. It means that higher extent of TQM practices has less importance with business performance. Thus, the final ranking is finalized based on the practices level and it's importance to business performance as follows; (1)Management strategy and policy; (2)Customer focus; (3)Continuous improvement; (4)Supplier management; (5)Work process; (6)Business ethics; (7)Top management leadership; (8)Information and analysis; (9)Human resource development; (10) New product management. This research will help the academicians and industry players to have better understanding on the importance of TQM practices in effective way to the company in improving business performance.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:TQM; business perfomance; survey; Malaysia
Subjects:H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:Faculty of Technology Management and Business > Department of Production and Operation
ID Code:5204
Deposited By:Normajihan Abd. Rahman
Deposited On:21 Oct 2014 12:40
Last Modified:21 Jan 2015 15:39

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