Impact of Total Quality Management and Service Quality in the Banking Sector

After the successful implementation of TQM in manufacturing it is now being extensively applied in service sectors including banks, to improve business performance. Keeping this in view, the purpose of this paper is to present a detailed overview of the role of service quality and Total Quality Management (TQM), and its critical dimensions in the banking sector. A detailed review of the literature on TQM and service quality concepts was carried out in context of the banking sector. The study further explored the experience of TQM implementation in banks adopting this approach. The findings indicate that to ensure successful implementation of TQM in the banks, there are certain critical dimensions which needs to be addressed, viz: management commitment and support towards TQM, motivating and training of employees, and monitoring of customers’ requirement through feedback. Beside this, it was also found that service quality is an important construct in banking sector and identifies four broad conceptual categories related to service quality. The finding will provide an understanding of the role of TQM and service quality in banking sector and it also provides useful direction for future research.

[1]  B. Kayis,et al.  A comparative analysis of cultural, conceptual and practical constraints on quality management implementations--findings from Australian and Korean banking industries , 2003 .

[2]  Pratibha A. Dabholkar,et al.  Technology-based service delivery: A classification scheme for developing marketing strategies , 1994 .

[3]  M. Joseph,et al.  Service quality in the banking sector: the impact of technology on service delivery , 1999 .

[4]  R. Peterson,et al.  Taking the pulse of Internet pharmacies. , 2001, Marketing health services.

[5]  M. Sathye.  Adoption of Internet banking by Australian consumers: an empirical investigation , 1999 .

[6]  T. Ward,et al.  Measuring Banks' Automated Service Quality: A Confirmatory Factor Analysis Approach , 2005 .

[7]  Jay Kandampully,et al.  Competitive advantage through anticipation, innovation and relationships , 1999 .

[8]  David Wilemon,et al.  Product management and the marketing of financial services , 2013 .

[9]  Rhian Silvestro,et al.  Towards a contingency theory of TQM in services ‐ How implementation varies on the basis of volume and variety , 2001 .

[10]  Faisal Talib,et al.  Studying the Impact of Total Quality Management in Service Industries , 2010 .

[11]  K. Newman,et al.  Banking on people , 1995 .

[12]  Deirdre O'loughlin,et al.  Exploring e‐service quality: a study of Irish online banking , 2008 .

[13]  Jay Kandampully.  Firms should give loyalty before they can expect it from customers , 2001 .

[14]  Adrian Furnham,et al.  Service profit chain , 2007 .

[15]  Werner Vermeulen,et al.  Training and education for TQM in the commercial banking industry of South Africa , 2000 .

[16]  Prashanth U. Nyer.  An investigation into whether complaining can cause increased consumer satisfaction , 2000 .

[17]  Steven A. Taylor,et al.  Servperf versus Servqual: Reconciling Performance-Based and Perceptions-Minus-Expectations Measurement of Service Quality , 1994 .

[18]  L. Schlesinger,et al.  Internal Service Quality, Customer and Job Satisfaction: Linkages and Implications for Managers , 1996 .

[19]  Sandra Streukens,et al.  Comfort your online customer: quality, trust and loyalty on the internet , 2004 .

[20]  M. Sami Kassem,et al.  Services Marketing: the Arabian Gulf Experience , 1989 .

[21]  Gilbert A. Churchill,et al.  Improving the measurement of service quality , 1993 .

[22]  M. Al-hawari,et al.  The relationship between service quality and retention within the automated and traditional contexts of retail banking , 2009 .

[23]  Huseyin Arasli,et al.  Customer service quality in the Greek Cypriot banking industry , 2005 .

[24]  A. Parasuraman,et al.  More on improving service quality measurement , 1993 .

[25]  Chandrasekharan Rajendran,et al.  Management’s perception of total quality service in the banking sector of a developing economy – a critical analysis , 2002 .

[26]  Mohamed Zairi,et al.  Excellence in service: an empirical study of the UAE banking sector , 2007 .

[27]  Spiros Gounaris,et al.  Antecedents to perceived service quality : an exploratory study in the banking sector , 2003 .

[28]  A. Parasuraman,et al.  Reassessment of expectations as a comparison standard in measuring service quality: Implications , 1994 .

[29]  P. K. Kannan,et al.  E-service: a new paradigm for business in the electronic environment , 2003, CACM.

[30]  Yer Van Hui,et al.  The antecedents of service quality and product quality and their influences on bank reputation: evidence from the banking industry in China , 2003 .

[31]  A. Parasuraman,et al.  A Conceptual Model of Service Quality and Its Implications for Future Research , 1985 .

[32]  G. Stone,et al.  An empirical evaluation of US bank customer perceptions of the impact of technology on service delivery in the banking sector , 2003 .

[33]  P. A. Dabholkar.  Consumer evaluations of new technology-based self-service options: An investigation of alternative models of service quality , 1996 .

[34]  K. Newman,et al.  Interrogating SERVQUAL: a critical assessment of service quality measurement in a high street retail bank , 2001 .

[35]  Eldon Y. Li,et al.  Quality management initiatives in the banking industry: A meta analysis of Hong Kong and the UK , 2001 .

[36]  Ashraf M. Ahmed,et al.  Virtual integrated performance measurement , 2002 .

[37]  Niels Peter Mols,et al.  The Internet and services marketing - the case of Danish retail banking , 2000, Internet Res..

[38]  Okan Veli Şafakli.  Assessing the Need of TQM in the Banking Sector of the Northern Cyprus , 2005 .

[39]  A. Parasuraman,et al.  Improving service quality in America: Lessons learned , 1994 .

[40]  Hans H. Bauer,et al.  Measuring the Quality of E-Banking Portals - an Empirical Investigation , 2005 .

[41]  Chang Liu,et al.  Exploring the factors associated with Web site success in the context of electronic commerce , 2000, Inf. Manag..

[42]  Kamel Mellahi,et al.  Critical factors for successful total quality management implementation in Turkey: Evidence from the banking sector , 2001 .

[43]  Shaohan Cai,et al.  The key determinants of Internet banking service quality: a content analysis , 2001 .