TQM's contribution to marketing implementation and firm's competitiveness

Total Quality Management (TQM) is a management philosophy that is widespread among many organisations all over the world. Accordingly, the practical implications of TQM on an increasing range of firms' operations are receiving growing attention from both practitioners and researchers. This paper presents an empirical study that examines the impact of TQM implementation on the firms' market orientation and the joint effect of these variables on the development of marketing capabilities. The research also addresses the analysis of the TQM effect on firms' market-related performance relative to their main competitors. The final purpose is twofold: (1) to obtain an in-depth understanding of the TQM role in the effective implementation of marketing, given the recent concerns regarding the decreasing preponderance of marketing in the organisations, and (2) to reinforce the TQM contribution to companies' competitiveness. TQM implementation is measured following the EFQM Excellence Model, as it represents an unquestionable benchmark for European firms. The study applies structural equation modelling to test the empirical model built on an extensive literature review. The findings indicate that TQM positively influences firms' performance as well as marketing development within the organisation in terms of cultural market orientation and marketing capabilities. TQM can thus be advocated as a recommendable management system from the marketing perspective that, in addition, effectively supports firms' competitiveness.

[1]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[2]  Jayant V. Saraph,et al.  An Instrument for Measuring the Critical Factors of Quality Management , 1989 .

[3]  R. Grant The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation , 1991 .

[4]  Richard Reed,et al.  Commitment to total quality management: Is there a relationship with firm performance? , 1997 .

[5]  Amrik S. Sohal,et al.  TQM and innovation: a literature review and research framework , 2001 .

[6]  Charles R. O'Neal,et al.  Marketing's lead role in total quality , 1992 .

[7]  Aron O'Cass,et al.  Exploring the characteristics of the market-driven firms and antecedents to sustained competitive advantage , 2004 .

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

[9]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[10]  J. Dart,et al.  Measuring market orientation: A multi‐factor, multi‐item approach , 1994 .

[11]  Michael Ahearne,et al.  Some Possible Antecedents and Consequences of In-Role and Extra-Role Salesperson Performance , 1998 .

[12]  James M. Sinkula Market Information Processing and Organizational Learning , 1994 .

[13]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[14]  Ismail Sila,et al.  An investigation of the total quality management survey based research published between 1989 and 2000: A literature review , 2002 .

[15]  Jiju Antony,et al.  Critical success factors of TQM implementation in Hong Kong industries , 2002 .

[16]  Haiyang Li,et al.  When Does Trust Matter? Antecedents and Contingent Effects of Supervisee Trust on Performance in Selling New Products in China and the United States , 2002 .

[17]  Paul D. Larson,et al.  The TQM Impact: A Study of Quality Managers' Perceptions , 1995 .

[18]  N. A. Dayton,et al.  The demise of total quality management (TQM) , 2003 .

[19]  Mandeep Singh,et al.  Marketing Renaissance: Opportunities and Imperatives for Improving Marketing Thought, Practice, and Infrastructure , 2005 .

[20]  Douglas W. Vorhies,et al.  The Capabilities and Perfor Mance Advantages of Market‐Driven Firms: An Empirical Investigation , 2000 .

[21]  Ming-Tien Tsai,et al.  The Impact of Marketing Knowledge among Managers on Marketing Capabilities and Business Performance , 2004 .

[22]  Bernard J. Jaworski,et al.  Market Orientation: The Construct, Research Propositions, and Managerial Implications , 1990 .

[23]  Rodolfo Vázquez,et al.  The Role of Market Orientation In Business Dyadic Relationships: Testing an Integrator Model , 2003 .

[24]  Neil A. Morgan,et al.  Market-Led Quality , 1992 .

[25]  Frank W. Dewhurst,et al.  Relating TQM, marketing and business performance: An exploratory study , 2000 .

[26]  R. Mayer,et al.  Marketing, total quality management and benchmarking: exploring the divide , 2000 .

[27]  L. J. Porter,et al.  Identification of the Critical Factors of TQM , 1996 .

[28]  Amrik S. Sohal,et al.  A study of the relationship between quality management practices and performance in small businesses , 1999 .

[29]  Kin Chung Woon TQM implementation: comparing Singapore’s service and manufacturing leaders , 2000 .

[30]  A. Wilkinson,et al.  Rethinking total quality management , 2001 .

[31]  F. Webster The rediscovery of the marketing concept , 1988 .

[32]  Hesan A. Quazi,et al.  A journey toward total quality management through ISO 9000 certification ‐ a study on small‐ and medium‐sized enterprises in Singapore , 1998 .

[33]  Eugene H. Fram,et al.  Not so strange bedfellows: marketing and total quality management , 1995 .

[34]  John C. Anderson,et al.  A Path Analytic Model of a Theory of Quality Management Underlying the Deming Management Method: Preliminary Empirical Findings* , 1995 .

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

[36]  N. D. Ahanotu,et al.  Empowerment and production workers: a knowledge‐based perspective , 1998 .

[37]  Gilbert A. Churchill,et al.  Marketing: Creating Value for Customers , 1995 .

[38]  Iris Mohr-Jackson Conceptualizing total quality orientation , 1998 .

[39]  C. K. Mok,et al.  TQM: A change management model for market orientation , 2005 .

[40]  María Leticia Santos-Vijande,et al.  Organizational learning and market orientation: interface and effects on performance , 2005 .

[41]  B. Barnes,et al.  Relationship marketing needs total quality management , 1999 .

[42]  K. B. Hendricks,et al.  Firm characteristics, total quality management, and financial performance , 2001 .

[43]  Lawrence M. Corbett,et al.  An international study of quality improvement approach and firm performance , 1997 .

[44]  J. J. Dahlgaard,et al.  A causal model for employee satisfaction , 2000 .

[45]  J. Weerawardena Exploring the role of market learning capability in competitive strategy , 2003 .

[46]  Kevin B. Hendricks,et al.  The Long-Run Stock Price Performance of Firms with Effective TQM Programs , 2001, Manag. Sci..

[47]  Sanjay L. Ahire,et al.  Development and Validation of TQM Implementation Constructs , 1996 .

[48]  John O. Burdett TQM and Re‐engineering , 1994 .

[49]  Nigel F. Piercy,et al.  Marketing implementation: The implications of marketing paradigm weakness for the strategy execution process , 1998 .

[50]  Farzaneh Fazel,et al.  An Integrative Framework for Developing and Evaluating a TQM Implementation Plan , 1995 .

[51]  Shaukat A. Brah,et al.  Relationship between TQM and performance of Singapore companies , 2002 .

[52]  Gordon E. Greenley FORMS OF MARKET ORIENTATION IN UK COMPANIES , 1995 .

[53]  J. Weerawardena The role of marketing capability in innovation-based competitive strategy , 2003 .

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

[55]  S. Hart,et al.  Market orientation versus quality orientation: sources of superior business performance , 2004 .

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

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

[58]  Amrik S. Sohal,et al.  The multidimensionality of TQM practices in determining quality and innovation performance — an empirical examination , 2004 .

[59]  Chandrasekharan Rajendran,et al.  TQM is a must for success, but not sufficient for survival: A conceptual framework as contemplated in ancient Tamil literature in India , 2003 .

[60]  Arawati Agus,et al.  The structural impact of total quality management on financial performance relative to competitors through customer satisfaction: A study of Malaysian manufacturing companies , 2000 .

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

[62]  Philip B. Crosby,et al.  Quality Is Free: The Art of Making Quality Certain , 1979 .

[63]  Armand V. Feigenbaum,et al.  Total quality control , 1961 .

[64]  Shams Rahman,et al.  Soft TQM, hard TQM, and organisational performance relationships: an empirical investigation , 2004 .

[65]  Kenneth M. York,et al.  Causation or covariation: An empirical re-examination of the link between TQM and financial performance , 2004 .

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

[67]  Jose Ignacio Castresana Ruiz-Carrillo,et al.  Theoretical foundation of the EFQM model: the resource-based view , 2005 .

[68]  Adrienne Curry,et al.  Focusing on key elements of TQM – evaluation for sustainability , 2002 .

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

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

[71]  Neil A. Morgan,et al.  Benchmarking Marketing Capabilities for Sustainable Competitive Advantage , 2005 .

[72]  B. Mark Organizational culture. , 1996, Annual review of nursing research.

[73]  Peter M. Bentler,et al.  Practical Issues in Structural Modeling , 1987 .

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

[75]  Carmen Escanciano,et al.  Benefits of the ISO 9000:1994 system: Some considerations to reinforce competitive advantage , 2002 .

[76]  John R. Grandzol,et al.  A survey instrument for standardizing TQM modeling research , 1998 .

[77]  Zhihai Zhang,et al.  An instrument for measuring TQM implementation for Chinese manufacturing companies , 2000 .

[78]  A. Darker,et al.  TOTAL QUALITY CONTROL , 1987 .

[79]  Mile Terziovski,et al.  The link between total quality management practice and organisational performance , 1999 .

[80]  E. Schein Organizational Culture and Leadership , 1991 .

[81]  G. Day Continuous Learning about Markets , 1994 .

[82]  Ana B. Escrig-Tena,et al.  To what extent do enablers explain results in the EFQM excellence model?: An empirical study , 2005 .

[83]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

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

[85]  S. Rahman A comparative study of TQM practice and organisational performance of SMEs with and without ISO 9000 certification , 2001 .

[86]  Donald Davis,et al.  A STUDY OF MEASURING THE CRITICAL FACTORS OF QUALITY MANAGEMENT , 1995 .

[87]  Iris Mohr-Jackson Managing a Total Quality Orientation: Factors Affecting Customer Satisfaction , 1998 .

[88]  L. Harris,et al.  The organizational barriers to developing market orientation , 2000 .

[89]  R. Friedmann,et al.  Market-oriented culture, knowledge-related resources, reputational assets and superior performance: a conceptual framework , 1999 .