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The impact of total quality management practices with effects from moderators and mediators on business performance

Ahmad@Mohamad, Md. Fauzi (2014) The impact of total quality management practices with effects from moderators and mediators on business performance. PhD thesis, Universiti Teknologi Malaysia.


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Total Quality Management (TQM) is a very vital driver in determining that an organisation can survive in the global market. Based on institutional theory, TQM is a solution for improving business performance. Japanese companies have had superior achievement and left their non-Japanese counterparts far behind. One of the TQM strengths as observed in Japanese companies is technical aspects, i.e., tools and techniques namely total productive maintenance (TPM), statistical process control (SPC) and lean production. However, most previous works have given less emphasis on TPM, SPC and lean production as mediators; this has thus been identified as a theoretical gap. The main objective of this study is to develop a conceptual framework with TPM, SPC and lean production as mediators. Ownership, Asean Free Trade Agreement (AFTA) and mechanistic organisation were tested as moderators. Finally, a combination conceptual framework between mediators and moderators was developed for further evaluation to examine the mediator effects in different ownership via moderated mediation model. First, three theories namely institutional, system and contingency theory were identified and applied in this study. 32 hypotheses were proposed to develop conceptual framework based on structural equation modelling (SEM). Four conceptual frameworks were identified and developed. Data were obtained from 319 automotive companies and related suppliers in Malaysia with 21.3% response rate. The structural model results proved that TQM has a significant impact on business performance. TQM practices were better predictor of business performance in Japanese companies. This study revealed that tools and techniques namely TPM, SPC and lean production were important as mediators between TQM and business performance. Furthermore, based on moderated mediation testing of ownership on mediator effect, TPM and SPC showed significant effect, with Japanese companies having greater relationship than non- Japanese companies. In this study, researchers proposed business ethics and transformation performance as new variables in TQM and business performance constructs. In addition, this study proposed step by step improvement in sequence as follows: TQM, TPM, SPC and lean production. Based on the moderator test, ownership, AFTA and mechanistic were significant moderators between TQM and business performance. Management leadership, information and analysis, new product management, business ethics and human resource development showed significant difference in TQM practices in favour of Japanese companies. This is a theoretical and managerial finding that adds to the existing literature on quality management since few studies have been conducted combining the three theories as mentioned in the conceptual framework in TQM.

Item Type: Thesis (PhD)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User: En. Sharul Ahmad
Date Deposited: 05 May 2016 09:47
Last Modified: 05 May 2016 09:47
URI: http://eprints.uthm.edu.my/id/eprint/7772
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