The TQM Paradox: Relations among TQM practices, plant performance, and customer satisfaction

The TQM Paradox: Relations among TQM practices, plant performance, and customer satisfaction We empirically examine a mediational model of TQM, in which TQM practices have a direct impact on customer satisfaction and an indirect impact mediated through plant performance. We adopt a survey approach using the data from 339 manufacturing companies. We first establish convergent validity, discriminant validity, and reliability of the constructs. We then examine the model using LISREL 8.10. The results suggest paradoxical relations among TQM practices, plant performance, and customer satisfaction. TQM practices have a stronger impact on customer satisfaction than they do on plant performance. Further, the plant performance, as described in the mediational model, fails to show a significant impact on customer satisfaction. This observation is explained based on an institutional argument that states that loose coupling may occur between TQM practices designed for customer demands and the activities on the plant floor designed for plant performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Operations Management Elsevier

The TQM Paradox: Relations among TQM practices, plant performance, and customer satisfaction

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Publisher
Elsevier
Copyright
Copyright © 1998 Elsevier Science B.V.
ISSN
0272-6963
DOI
10.1016/S0272-6963(98)00031-X
Publisher site
See Article on Publisher Site

Abstract

We empirically examine a mediational model of TQM, in which TQM practices have a direct impact on customer satisfaction and an indirect impact mediated through plant performance. We adopt a survey approach using the data from 339 manufacturing companies. We first establish convergent validity, discriminant validity, and reliability of the constructs. We then examine the model using LISREL 8.10. The results suggest paradoxical relations among TQM practices, plant performance, and customer satisfaction. TQM practices have a stronger impact on customer satisfaction than they do on plant performance. Further, the plant performance, as described in the mediational model, fails to show a significant impact on customer satisfaction. This observation is explained based on an institutional argument that states that loose coupling may occur between TQM practices designed for customer demands and the activities on the plant floor designed for plant performance.

Journal

Journal of Operations ManagementElsevier

Published: Dec 1, 1998

References

  • Development and validation of TQM implementation constructs
    Ahire, S.L; Golhar, D.Y; Waller, M.A
  • Identification of the critical factors of TQM
    Black, S.A; Porter, L.J
  • The sales manager as a role model: effects on trust, job satisfaction, and performance of salespeople
    Rich, G.A
  • The business value of quality management systems certification: evidence from Australia and New Zealand
    Terziovski, M; Samson, D; Dow, D
  • Does TQM impact on bottom-line results?
    Zairi, M; Letza, S.R; Oakland, J.S
  • Institutional theories of organization
    Zucker, L.G

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