Quality citizenship, employee involvement, and operational performance: an empirical investigation

The purpose of this paper is to examine the effect of top-management support and corporate social responsibility (quality citizenship) practices on employee involvement and operational performance (internal quality results). Structural equation modelling has been used to examine the relationship between corporate social responsibility, employee involvement, and operational performance in the petroleum industry. The findings suggest that corporate social responsibility has a significant impact on employee involvement. The empirical analysis provides support for some of the arguments regarding the failure of quality management programmes in promoting employee participation and involvement. The result suggests that implementation of corporate social responsibility would have a positive effect on the formation of ‘moral capital’ of the firm through enhancing employee involvement. The paper provides a new perspective on successful implementation of quality systems and how organisations can design, develop, and maintain sustainable quality programmes. Implications of the research to practice and future research have been outlined.

[1]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .

[2]  Howard B. Lee,et al.  Foundations of Behavioral Research , 1973 .

[3]  E. Gray,et al.  Social Responsibilities of Business Managers , 1974 .

[4]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[5]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

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

[7]  W. Edwards Deming,et al.  Out of the Crisis , 1982 .

[8]  Kenneth E. Aupperle,et al.  An empirical examination of the relationship between corporate so#al responsibility and profitabilit , 1985 .

[9]  R. Solomon,et al.  It's good business , 1985 .

[10]  J. McGuire,et al.  Corporate Social Responsibility and Firm Financial Performance , 1988 .

[11]  Jennifer L. Hartnett,et al.  Managing Quality: The Strategic and Competitive Edge , 1988 .

[12]  S. Rynes.  Recruitment, Job Choice, and Post-Hire Consequences: A Call For New Research Directions , 1989 .

[13]  Nick Oliver,et al.  Employee Commitment and Total Quality Control , 1990 .

[14]  C. Fombrun,et al.  What's in a Name? Reputation Building and Corporate Strategy , 1990 .

[15]  Adrian John Wilkinson,et al.  Total Quality Management and Employee Involvement , 1992 .

[16]  Adrian John Wilkinson,et al.  The other side of quality: 'soft' issues and the human resource dimension , 1992 .

[17]  Charles J. Corbett,et al.  The Green Fee: Internalizing and Operationalizing Environmental Issues , 1993 .

[18]  J. Dean,et al.  MANAGEMENT THEORY AND TOTAL QUALITY: IMPROVING RESEARCH AND PRACTICE THROUGH THEORY DEVELOPMENT , 1994 .

[19]  Roger G. Schroeder,et al.  A FRAMEWORK FOR QUALITY MANAGEMENT RESEARCH AND AN ASSOCIATED MEASUREMENT INSTRUMENT , 1994 .

[20]  David A. Waldman,et al.  THE CONTRIBUTIONS OF TOTAL QUALITY MANAGEMENT TO A THEORY OF WORK PERFORMANCE , 1994 .

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

[22]  Adrian John Wilkinson,et al.  Managing human resources for TQM: possibilities and pitfalls , 1995 .

[23]  Susan Albers Mohrman,et al.  Total quality management: practice and outcomes in the largest US firms , 1995 .

[24]  L. Preston,et al.  The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications , 1995 .

[25]  David L. Deephouse,et al.  Does Isomorphism Legitimate? , 1996 .

[26]  Daniel J. McCarthy,et al.  A framework for leadership in a TQM context , 1996 .

[27]  K. B. Hendricks,et al.  Quality awards and the market value of the firm: an empirical investigation , 1996 .

[28]  M. Pava,et al.  The association between corporate social-responsibility and financial performance: The paradox of social cost , 1996 .

[29]  David A. Waldman,et al.  Operational, organizational, and human resource factors predictive of customer perceptions of service quality , 1996 .

[30]  Richard Florida,et al.  Lean and Green: The Move to Environmentally Conscious Manufacturing , 1996 .

[31]  Philip Selznick.  Institutionalism "Old" and "New.". , 1996 .

[32]  D. Turban,et al.  Corporate Social Performance And Organizational Attractiveness To Prospective Employees , 1997 .

[33]  Samuel B. Graves,et al.  The corporate social performance-financial performance link , 1997 .

[34]  K. B. Hendricks,et al.  Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards , 1997 .

[35]  Thomas Y. Choi,et al.  Top managers and TQM success: One more look after all these years , 1997 .

[36]  M. Russo,et al.  A Resource-Based Perspective On Corporate Environmental Performance And Profitability , 1997 .

[37]  A. Ghobadian,et al.  TQM and organization size , 1997 .

[38]  James D. Westphal,et al.  Customization or Conformity? An Institutional and Network Perspective on the Content and Consequences of TQM Adoption , 1997 .

[39]  Peter A. Dacin,et al.  The Company and the Product: Corporate Associations and Consumer Product Responses , 1997 .

[40]  Robert J. Vokurka,et al.  The empirical assessment of construct validity , 1998 .

[41]  L. Punter,et al.  Social accountability: The most recent element to ensure total quality management , 1998 .

[42]  John Elkington,et al.  Partnerships from cannibals with forks: The triple bottom line of 21st‐century business , 1998 .

[43]  S. Ahire,et al.  The role of top management commitment in quality management: an empirical analysis of the auto parts industry , 1998 .

[44]  Stanislav Karapetrovic,et al.  Integration of quality and environmental management systems , 1998 .

[45]  G. Easton,et al.  The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation , 1998 .

[46]  S. S. Rao,et al.  A Framework for International Quality Management Research: Development and Validation of a Measurement Instrument , 1999 .

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

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

[49]  Barry M. Staw,et al.  What Bandwagons Bring: Effects of Popular Management Techniques on Corporate Performance, Reputation, and CEO Pay , 2000 .

[50]  Joseph Sarkis,et al.  The relationship between ISO 14001 and continuous source reduction programs , 2000 .

[51]  D. Turban,et al.  Corporate Social Performance As a Competitive Advantage in Attracting a Quality Workforce , 2000 .

[52]  Shane A. Johnson,et al.  Buyer–Supplier Contracts versus Joint Ventures: Determinants and Consequences of Transaction Structure , 2000 .

[53]  T. Douglas,et al.  Total Quality Management Implementation and Competitive Advantage: The Role of Structural Control and Exploration , 2001 .

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

[55]  S. Shortell,et al.  Top manager and network effects on the adoption of innovative management practices: a study of TQM in a public hospital system , 2001 .

[56]  R. Florida,et al.  Gaining from Green Management: Environmental Management Systems inside and outside the Factory , 2001 .

[57]  Abagail McWilliams,et al.  Corporate Social Responsibility: a Theory of the Firm Perspective , 2001 .

[58]  Alan Brown,et al.  A Corporate Social Responsibility Audit within a Quality Management Framework , 2001 .

[59]  Craig K. Enders,et al.  The Relative Performance of Full Information Maximum Likelihood Estimation for Missing Data in Structural Equation Models , 2001 .

[60]  R. Pouder,et al.  Change drivers in the new millennium: implications for manufacturing strategy research , 2001 .

[61]  Karl Heiner,et al.  Exploringthe Relationship Between Corporate Social Performance and Employer Attractiveness , 2002 .

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

[63]  M. Porter,et al.  The competitive advantage of corporate philanthropy. , 2002, Harvard business review.

[64]  S. Karapetrovic.  Musings on integrated management systems , 2003 .

[65]  Hale Kaynak,et al.  The relationship between total quality management: practices and their effects on firm performance , 2003 .

[66]  J. M. D. Cerio,et al.  Quality management practices and operational performance: Empirical evidence for Spanish industry , 2003 .

[67]  F. Schmidt,et al.  Corporate Social and Financial Performance: A Meta-Analysis , 2003 .

[68]  Michael Beer,et al.  Why Total Quality Management Programs Do Not Persist: The Role of Management Quality and Implications for Leading a TQM Transformation , 2003, Decis. Sci..

[69]  Christian N. Madu.  Competing on Quality and Environment , 2003 .

[70]  Wallace J. Hopp,et al.  On the Interface Between Operations and Human Resources Management , 2003, Manuf. Serv. Oper. Manag..

[71]  R. Grant.  Strategic planning in a turbulent environment: evidence from the oil majors , 2003 .

[72]  D. Streiner.  Starting at the Beginning: An Introduction to Coefficient Alpha and Internal Consistency , 2003, Journal of personality assessment.

[73]  J. D. Margolis,et al.  Misery Loves Companies: Rethinking Social Initiatives by Business , 2003 .

[74]  G. Wright,et al.  A longitudinal study of TQM implementation: factors influencing success and failure , 2003 .

[75]  Mark Kaganov,et al.  A Quality Manual For the Transition And Beyond , 2003 .

[76]  J. D. Margolis,et al.  Social Issues and Management: Our Lost Cause Found , 2003 .

[77]  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.

[78]  Gerard I.J.M. Zwetsloot,et al.  From Management Systems to Corporate Social Responsibility , 2003 .

[79]  E. Neumayer,et al.  Uneven Geographies of Organizational Practice: Explaining the Cross-National Transfer and Diffusion of ISO 9000 , 2004 .

[80]  Joseph Sarkis,et al.  RELATIONSHIPS BETWEEN OPERATIONAL PRACTICES AND PERFORMANCE AMONG EARLY ADOPTERS OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES IN CHINESE MANUFACTURING ENTERPRISES , 2004 .

[81]  Petra Christmann.  MULTINATIONAL COMPANIES AND THE NATURAL ENVIRONMENT: DETERMINANTS OF GLOBAL ENVIRONMENTAL POLICY STANDARDIZATION , 2004 .

[82]  Jeffrey K. Liker,et al.  The Toyota way : 14 management principles from the world's greatest manufacturer , 2004 .

[83]  S. Waddock,et al.  Managing Responsibility: What Can Be Learned from the Quality Movement? , 2004 .

[84]  Cristóbal Sánchez-Rodríguez,et al.  Quality management practices in the purchasing function: An empirical study , 2004 .

[85]  Christopher J. Bamber,et al.  Integrating corporate social responsibility (CSR) into ISO management systems – in search of a feasible CSR management system framework , 2004 .

[86]  J. Moon,et al.  Corporate Social Responsibility , 2004 .

[87]  Hettie A. Richardson,et al.  Integrating managerial perceptions and transformational leadership into a work‐unit level model of employee involvement , 2005 .

[88]  Michael J. Lenox,et al.  The Strategic Use of Decentralized Institutions: Exploring Certification With the ISO 14001 Management Standard , 2005 .

[89]  Stephen Bell,et al.  Institutionalism : Old and New , 2005 .

[90]  Ebrahim Soltani,et al.  Top management: A threat or an opportunity to TQM? , 2005 .

[91]  Fabrizio Salvador,et al.  TQM across multiple countries: Convergence hypothesis versus national specificity arguments , 2005 .

[92]  John L. Campbell.  Why would corporations behave in socially responsible ways? an institutional theory of corporate social responsibility , 2007 .

[93]  María del Mar García de los Salmones,et al.  Influence of Corporate Social Responsibility on Loyalty and Valuation of Services , 2005 .

[94]  Paul C. Godfrey.  The Relationship Between Corporate Philanthropy And Shareholder Wealth: A Risk Management Perspective , 2005 .

[95]  T. Guay,et al.  Corporate Social Responsibility, Public Policy, and Ngo Activism in Europe and the United States: An Institutional-Stakeholder Perspective , 2006 .

[96]  B. Husted,et al.  Taking Friedman Seriously: Maximizing Profits and Social Performance* , 2006 .

[97]  Iñ´aki Heras Saizarbitoria,et al.  ISO 9000 and ISO 14000 standards: an international diffusion model , 2006 .

[98]  Charles J. Corbett,et al.  Extending the Horizons: Environmental Excellence as Key to Improving Operations , 2006, Manuf. Serv. Oper. Manag..

[99]  Francesco Perrini,et al.  Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause , 2006 .

[100]  M. Porter,et al.  Strategy and society: the link between competitive advantage and corporate social responsibility. , 2006, Harvard business review.

[101]  Xueming Luo,et al.  Corporate Social Responsibility, Customer Satisfaction, and Market Value , 2006 .

[102]  Abagail McWilliams,et al.  Corporate Social Responsibility: Strategic Implications , 2006 .

[103]  Charles J. Corbett,et al.  Global Diffusion of ISO 9000 Certification Through Supply Chains , 2006, Manuf. Serv. Oper. Manag..

[104]  Hojung Shin,et al.  TQM practice in maquiladora: Antecedents of employee satisfaction and loyalty , 2006 .

[105]  Luca Berchicci,et al.  Postcards from the Edge: A Review of the Business and Environment Literature , 2008 .

[106]  Xianggui Qu,et al.  Multivariate Data Analysis , 2007, Technometrics.

[107]  Kee-hung Lai,et al.  An operational and institutional perspective on total quality management , 2007 .

[108]  Guido Berens,et al.  The CSR-Quality Trade-Off: When can Corporate Social Responsibility and Corporate Ability Compensate Each Other? , 2007 .

[109]  Cathy A. Rusinko,et al.  Green Manufacturing: An Evaluation of Environmentally Sustainable Manufacturing Practices and Their Impact on Competitive Outcomes , 2007, IEEE Transactions on Engineering Management.

[110]  Ismail Sila,et al.  Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study , 2007 .

[111]  Nikos Tsikriktsis,et al.  The Effect of Operational Performance and Focus on Profitability: A Longitudinal Study of the U.S. Airline Industry , 2007, Manuf. Serv. Oper. Manag..

[112]  Luca Berchicci,et al.  11 Postcards from the Edge , 2007 .

[113]  R. Klassen,et al.  Environmental management and manufacturing performance: The role of collaboration in the supply chain , 2008 .

[114]  Hale Kaynak,et al.  A replication and extension of quality management into the supply chain , 2008 .

[115]  Michaela A. Balzarova,et al.  Adoption of social responsibility through the expansion of existing management systems , 2008, Ind. Manag. Data Syst..

[116]  Mahour Mellat-Parast,et al.  Learning: The Interface of Quality Management and Strategic Alliances , 2008 .

[117]  Michaela A. Balzarova,et al.  ISO 26000 and supply chains--On the diffusion of the social responsibility standard , 2008 .

[118]  David Gadenne,et al.  An Empirical Investigation of the Relationship between Quality Management Factors and Customer Satisfaction, Improved Competitive Position and Overall Business Performance , 2008 .

[119]  S. T. Foster,et al.  Towards an understanding of supply chain quality management , 2008 .

[120]  Sandra Rothenberg,et al.  ENVIRONMENTAL PERFORMANCE AS A DRIVER OF SUPERIOR QUALITY , 2003 .

[121]  Rolph E. Anderson,et al.  Multivariate Data Analysis (7th ed. , 2009 .

[122]  C. Bhattacharya,et al.  Strengthening Stakeholder–Company Relationships Through Mutually Beneficial Corporate Social Responsibility Initiatives , 2009 .

[123]  Charles J. Corbett,et al.  INTERNATIONAL DIFFUSION OF ISO 14000 CERTIFICATION , 2001 .

[124]  L. V. Wassenhove,et al.  Sustainable Operations Management , 2005 .

[125]  Mesut Akdere,et al.  A multi-level examination of quality-focused human resource practices and firm performance: evidence from the US healthcare industry , 2009 .

[126]  Paul C. Godfrey,et al.  The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis , 2009 .

[127]  D. Samson,et al.  EXPLODING THE MYTH: DO ALL QUALITY MANAGEMENT PRACTICES CONTRIBUTE TO SUPERIOR QUALITY PERFORMANCE? , 1999 .

[128]  Michael J. Lenox,et al.  LEAN AND GREEN? AN EMPIRICAL EXAMINATION OF THE RELATIONSHIP BETWEEN LEAN PRODUCTION AND ENVIRONMENTAL PERFORMANCE , 2001 .

[129]  Javier González-Benito,et al.  The intervening effect of business innovation capability on the relationship between Total Quality Management and technological innovation , 2009 .

[130]  Sandra C. Duhé.  Good management, sound finances, and social responsibility: Two decades of U.S. corporate insider perspectives on reputation and the bottom line , 2009 .

[131]  C. Lance,et al.  What Reviewers Should Expect from Authors Regarding Common Method Bias in Organizational Research , 2010 .

[132]  C. Kauffman.  Employee Involvement: A New Blueprint for Success , 2010 .

[133]  Ram Narasimhan,et al.  Quality Management and Cooperative Values: Investigation of Multilevel Influences on Workgroup Performance , 2010, Decis. Sci..

[134]  Anne Parmigiani,et al.  Efficiency meets accountability: Performance implications of supply chain configuration, control, and capabilities , 2011 .