A study of the validity of three major business excellence models in the Asia Pacific region

The validity of three key Business Excellence (BE) models used in the Asia Pacific Region – the Australian Business Excellence Framework (ABEF), the Baldrige Criteria for Performance Excellence (BCPE), and the Singapore Quality Award Criteria (SQAC) – was studied based on data (item scores) of past applicants of national quality/BE awards. This study greatly enhances understanding of the following: (i) how measurement items in different BE models are related to their assigned categories (constructs); (ii) evidence that there exists a theory underlying BE criteria; and (iii) how theoretical models can be interpreted, from a practical perspective. We found that in general, the level of evidence of measurement validity of the ABEF was lower, compared to the other two BE models. It is recommended that more attention is given to enhancing the precision of measurement items in future model revisions. The heuristics used in this analysis can be applied as a generic method in many other studies.

[1]  J. Hackman,et al.  Total Quality Management: Empirical, Conceptual, and Practical Issues , 1995 .

[2]  Gertrude P. Pannirselvam,et al.  A study of the relationships between the Baldrige categories , 2001 .

[3]  R. Mann,et al.  Helping the Kiwi to Fly: Creating World-Class Organizations in New Zealand Through a Benchmarking Initiative , 2004 .

[4]  K. Cameron,et al.  ORGANIZATIONAL QUALITY: An Examination of the Malcolm Baldrige National Quality Framework , 1998 .

[5]  R. Sitgreaves Psychometric theory (2nd ed.). , 1979 .

[6]  Barbara B. Flynn,et al.  Further evidence on the validity of the theoretical models underlying the Baldrige criteria , 2001 .

[7]  J. Nunnally Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[8]  Jacob Eskildsen,et al.  The criterion weights of the EFQM excellence model , 2001 .

[9]  Alan Brown,et al.  The Relationship between TQM Practices and Quality Performance and the Role of Formal TQM Programs: An Australian Empirical Study , 2004 .

[10]  David A. Collier,et al.  An empirical test of the causal relationships in the Baldrige Health Care Pilot Criteria , 2001 .

[11]  Herman Wold,et al.  Model Construction and Evaluation When Theoretical Knowledge Is Scarce , 1980 .

[12]  K. Jöreskog,et al.  Intraclass Reliability Estimates: Testing Structural Assumptions , 1974 .

[13]  Jens J. Dahlgaard,et al.  Fundamentals of Total Quality Management: Process analysis and improvement , 1997 .

[14]  Darryl D. Wilson,et al.  An Empirical Investigation of the Malcolm Baldrige National Quality Award Causal Model , 2000, Decis. Sci..

[15]  Rolph E. Anderson,et al.  Multivariate Data Analysis with Readings , 1979 .

[16]  Detmar W. Straub,et al.  A Practical Guide To Factorial Validity Using PLS-Graph: Tutorial And Annotated Example , 2005, Commun. Assoc. Inf. Syst..

[17]  Paul N. Finlay,et al.  Validity of Decision Support Systems: Towards a Validation Methodology , 1997 .

[18]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[19]  S. Messick Validity of Psychological Assessment: Validation of Inferences from Persons' Responses and Performances as Scientific Inquiry into Score Meaning. Research Report RR-94-45. , 1994 .

[20]  D. Garvin How the Baldrige Award really works. , 1991, Harvard business review.

[21]  Khaled A. Alshare,et al.  The Baldrige Education Criteria for Performance Excellence Framework , 2006 .

[22]  T. C. Powell Total Quality Management as Competitive Advantage , 1995 .

[23]  L. Cronbach,et al.  Construct validity in psychological tests. , 1955, Psychological bulletin.

[24]  S. Rahman,et al.  Total quality management practices and business outcome: Evidence from small and medium enterprises in Western Australia , 2001 .

[25]  P. Wright,et al.  Editorial: Learning from diversity: HRM is not Lycra , 2003 .

[26]  Nigel Grigg,et al.  Rewarding Excellence: An International Study into Business Excellence Award Processes , 2008 .

[27]  Sang M. Lee,et al.  Impact of Malcolm Baldrige National Quality Award Criteria on organizational quality performance , 2003 .

[28]  M. Terziovski,et al.  The relationship between total quality management practices and operational performance , 1999 .

[29]  C. Voss,et al.  Quality management re-visited: a reflective review and agenda for future research , 2002 .

[30]  Gertrude P. Pannirselvam,et al.  Validation of the Arizona Governor's Quality Award criteria: a test of the Baldrige criteria , 1998 .

[31]  Scott B. MacKenzie,et al.  The dangers of poor construct conceptualization , 2003 .

[32]  M. Kenward,et al.  An Introduction to the Bootstrap , 2007 .

[33]  Alexander Hausner Business success and ABEF evaluation results: on the nexus between manufacturing results and frameworks for business excellence , 1999 .

[34]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[35]  L.M.H. van Zuilichem Performance Measurement System , 2018, Strategic Analytics.

[36]  Roger J. Calantone,et al.  Validating the Malcolm Baldrige National Quality Award Framework through structural equation modelling , 2000 .

[37]  Michael Armstrong,et al.  A Handbook of Human Resource Management Practice , 1999 .

[38]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .

[39]  L. Cronbach Coefficient alpha and the internal structure of tests , 1951 .

[40]  Detmar W. Straub,et al.  Validation Guidelines for IS Positivist Research , 2004, Commun. Assoc. Inf. Syst..