The effects of total quality management and organisational learning on business performance: evidence from Taiwanese insurance industries

This research is focused on the Taiwanese insurance industry to explore the relationship among total quality management (TQM), organisational learning (OL) and business performance of insurance companies. In this study, the questionnaires are analysed and the t-test, analysis of variance, and multiple regression models are used to verify the research framework and hypotheses. The results show significant difference of gender, position, educational level and industry on TQM, OL and business performance recognition, but there is no significant difference in seniority. Using multiple regression analysis and the mediating test, the principal findings of this study are shown as follows: (1) TQM has significant and positive effects on OL, (2) Both TQM and OL have significant and positive effects on business performance, (3) OL fosters business performance and plays a mediating role between TQM and business performance, and (4) The non-life and the life insurance industries, which carry out TQM, OL and business performance, are significantly different. The results show practical implications for the insurance industry in Taiwan.

[1]  M. Bartlett.  TESTS OF SIGNIFICANCE IN FACTOR ANALYSIS , 1950 .

[2]  J. Oakland.  From quality to excellence in the 21st century , 2005 .

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

[4]  H. Ince,et al.  THE RELATIONSHIP BETWEEN ORGANIZATIONAL LEARNING AND FIRM PERFORMANCE: THE MEDIATING ROLES OF INNOVATION AND TQM Ipek KOCOGLU , 2011 .

[5]  M Williams,et al.  Managing Quality , 2018 .

[6]  N. Venkatraman,et al.  On the Measurement of Business Performance in Strategy Research: A Comparison of Approaches , 2015 .

[7]  C. Weng.  Improving service technology and business process: A case of an insurance company in Taiwan , 2012, 2012 Proceedings of PICMET '12: Technology Management for Emerging Technologies.

[8]  Joseph Moses Juran,et al.  Made in U.S.A.: a renaissance in quality. , 1993, Harvard business review.

[9]  R. N. Anantharaman,et al.  A Conceptual model for total quality management in service organizations , 2001 .

[10]  H. Kaiser.  An index of factorial simplicity , 1974 .

[11]  Z. Irani,et al.  Total quality management and corporate culture: constructs of organisational excellence , 2004 .

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

[13]  Cheng-Hua Wang,et al.  Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors , 2012 .

[14]  Micaela Martínez-Costa,et al.  The Effectiveness of TQM , 2009 .

[15]  Josu Takala,et al.  Review of Relationship between TQM and Business Performance , 2013 .

[16]  Roger G. Schroeder,et al.  The Impact of Quality Management Practices on Performance and Competitive Advantage , 1995 .

[17]  Jiju Antony,et al.  Total quality management in UK service organisations: some key findings from a survey , 2001 .

[18]  Bella Ya-Hui Lien,et al.  Impact of TQM and organizational learning on innovation performance in the high-tech industry , 2011 .

[19]  Peter E.D. Love,et al.  Total quality management and the learning organization: a dialogue for change in construction , 2000 .

[20]  K. Maddulety,et al.  Effect of TQM on customer satisfaction in Indian Banking industry: A literature review , 2011 .

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

[22]  J. Hulland,et al.  Managing An Organizational Learning System By Aligning Stocks and Flows , 2002 .

[23]  Salih Z. Imamoglu,et al.  THE RELATIONSHIP BETWEEN ORGANIZATIONAL LEARNING AND FIRM PERFORMANCE : THE MEDIATING ROLES OF INNOVATION AND TQM , 2011 .

[24]  Evangelos Psomas,et al.  The structural relationships between TQM factors and organizational performance , 2010 .

[25]  Keng-Boon Ooi,et al.  Structural analysis of TQM and its impact on customer satisfaction and innovation , 2010 .

[26]  K. R. Conner,et al.  A Resource-Based Theory of the Firm: Knowledge Versus Opportunism , 1996 .

[27]  O. Ferrell,et al.  Global organizational learning effects on cycle time performance , 2002 .

[28]  Alain Yee-Loong Chong,et al.  Structural relationship between TQM practices and learning organisation in Malaysia's manufacturing industry , 2012 .

[29]  O. C. Ferrell,et al.  Global organizational learning capacity in purchasing: Construct and measurement , 1997 .

[30]  Chandrasekharan Rajendran,et al.  Significance of Quality Certification: The Case of the Software Industry in India , 2004 .

[31]  Masood H. Siddiqui,et al.  Measuring the Customer Perceived Service Quality for Life Insurance Services: An Empirical Investigation , 2010 .

[32]  Arawati Agus,et al.  TQM as a Focus for Improving Overall Service Performance and Customer Satisfaction: an Empirical Study on a Public Service Sector in Malaysia , 2004 .

[33]  R. Sohi,et al.  IT competency and firm performance: is organizational learning a missing link? , 2003 .

[34]  S. Brah,et al.  TQM and business performance in the service sector: a Singapore study , 2000 .

[35]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[36]  Gustavo Stubrich.  The Fifth Discipline: The Art and Practice of the Learning Organization , 1993 .

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

[38]  Younes Boujelbene,et al.  The effect of TQM implementation on firm performance in the Tunisian context , 2010 .

[39]  John C. Narver,et al.  Market Orientation and the Learning Organization , 1995 .

[40]  D. Garvin.  Building a learning organization. , 1993, Harvard business review.

[41]  Dinh Thai Hoang,et al.  Total quality management (TQM) strategy and organisational characteristics: Evidence from a recent WTO member , 2010 .

[42]  R. Calantone,et al.  Learning orientation, firm innovation capability, and firm performance , 2002 .

[43]  Su Mi Dahlgaard-Park,et al.  Business excellence models: limitations, reflections and further development , 2013 .

[44]  Jaana Sandström,et al.  The power of TQM: analysis of its effects on profitability, productivity and customer satisfaction , 2010 .

[45]  Alexander E. Ellinger,et al.  The relationship between the learning organization concept and firms' financial performance: An empirical assessment , 2002 .

[46]  Keng-Boon Ooi,et al.  The relationship between TQM, learning orientation and market performance in service organisations: an empirical analysis , 2011 .

[47]  J. J. Dahlgaard,et al.  Total quality beyond North America A comparative analysis of the performance of European Excellence Award winners , 2013 .