Beruflich Dokumente
Kultur Dokumente
2, 2016
Ayat M. Al Mahmoud
Department of Marketing Management,
The University of Jordan,
Jordan
Email: Ayat_hawary@yahoo.com
Abstract: The research papers which are related to services are limited in
Jordan. Since the Jordanian economy is heavily dependent on the services
sector, such research may enhance the quality of this sector. This study aims to
examine the relationship between TQM practices and the organisational
performance in the Jordanian courier service firms, and to determine which of
the studied practices control the performance wheel. The methodology used is
based on a cross sectional study carried out using a questionnaire survey. The
survey is distributed to a sample of departments in a leading courier service
firm in Jordan. Analysis has showed that TQM practices correlate positively
with organisational performance, with a significant positive value for
continuous improvement practice. Hence, managers should consider TQM
practices as a way to enhance performance, allocate resources and develop an
environment that supports continuous improvement ideas.
Reference to this paper should be made as follows: Sweis, R.J., Saleh, R.A.,
Al-Etayyem, R.H., Qasrawi, B.T. and Al Mahmoud, A.M. (2016) Total quality
management practices and organisational performance in Jordanian courier
services, Int. J. Productivity and Quality Management, Vol. 19, No. 2,
pp.258276.
1 Introduction
Many organisations around the globe have successfully adopted total quality management
(TQM) principles and practices to gain advantages. They have invested substantial
resources to implement TQM practices in their operations (Sweis et al, 2014; Munizu,
2013), and to meet the challenge of global competition. This has made TQM a globally
implemented management technique (Trappey, 1995).
TQM as a concept emerged from the manufacturing industry, but the ability to use its
tools and techniques outside the production area has enabled it to be implemented in the
service industry (Wali and Boujelbene, 2010). A number of studies showed that TQM
functions as a critical determinant in improving service quality in service organisations
(Al-Hawary and Abu-Laimon, 2013). Moreover, much evidence in the literature review
showed that TQM had benefited organisations in improving the quality of their products
and services, providing superior quality products to their customers, and enhancing their
performance (Abdullah et al., 2009; Hoang et al., 2010). On the other hand some
researchers showed that a number of organisations failed in applying the proper
implementation of TQM due to inappropriate TQM framework, lack of management
commitment, and resource problem (Abdolshah and Abdolshah, 2011). For that reason
organisations should not simply fly blind, they should thoroughly understand their
weaknesses and strengths before initiating TQM practices in their context.
In reviewing the literature regarding TQM practices, we found many definitions for
TQM. Each researcher defined TQM according to a specific approach. TQM is defined as
a management approach for improving organizational performance that encompasses a
variety of both technical and behavioural topics (Rahman and Bullock, 2005). Kaynak
(2003) stated that: TQM is a holistic management philosophy that strives for continuous
260 R.J. Sweis et al.
the activities of the organisation, and by monitoring the improvements to address the
deficiencies in the processes (Worrall and Cooper, 2012). It is also demonstrated by
generating the elements of quality management frame (Baidown, 2003).
Top management should support organisation mission and vision; focus on
developing peoples skills through arranging several training programmes and involve all
the employees in implementation and design stages to meet the needs and expectations of
stakeholders, customers, raising levels of quality and satisfaction (Jones and Grimshaw,
2012; Pencarelli et al., 2013).
Top management commitment leads to acceptance of quality responsibility, makes
vigorous strategies and maintains persistence for quality assurance, quality improvement,
focusing on market demands, consumer needs and organisational performance,
profitability and productivity (Sila and Ebrahimpour, 2005).
The managers must have profound knowledge of TQM, active participation and more
enthusiasm than their employees. They need clear definition terms for good
understanding of the work. Otherwise, employees may develop their definitions and it
will get unfavourable outcome for the organisation and stakeholders (Sanzo and lvarez,
2012). Therefore, top management must be on track for the organisations success in all
its ramifications (Abolarin et al., 2013). So, the following hypothesis was developed.
H1c There is a statistically significant relationship between the training and education
and the organisational performance of Jordanian courier service firms.
2.3.4 Teamwork
The team is a group of employees who are authorised to execute certain tasks (Delarue
et al., 2006). Doorewaard et al. (2002) defined teamwork as a process that satisfies
employees needs to have control over their environmental work. Thompson (2011)
claimed that the teamwork includes tasks that require interdependent work. According to
Ramesh and Ravi (2013), organisations that obtained team working culture have a very
strong training systems, motivational methods and good working atmosphere. Some
researchers find that teamwork has a positive impact on organisations and employees,
whether industrial or service organisations using teamwork. Salas et al. (2010) revealed
that in order gain competitive advantage team work must be adopted. Griffin et al. (2001)
found that team work is an important factor for success because it leads to goals and
mission communication, creativity encouragement, and employee empowerment. A study
conducted by Ajeigbe et al. (2014) about the relationship between team work and job
satisfaction showed that people who work in teams have higher job satisfaction and that
team work is a critical factor. According to the above results, the following hypothesis
was formulated.
H1d There is a statistically significant relationship between the teamwork and the
organisational performance of Jordanian courier service firms.
2012). TQM concept is primarily concerned with continuous improvement in all aspect
of business, from the level of strategic planning and decision-making, to detailed
execution of work elements. Gertsen (2001) defined continuous improvement as an
improvement process that is applied in small increments, and depends on employee
involvement. Continuous improvement contains tools and techniques to enhance
organisations performance, such as Lean, Six Sigma, problem solving methodology,
statistical process control (SPC), control charts and cause and effect diagrams (Ehie and
Sheu, 2005).
Moreover, applying continuous improvement in the service sector will increase profit
(Alvarez et al., 2012). In conclusion, the researchers viewpoint to continuous
improvement is a dynamic process that focuses on improvement programmes, services,
materials and their relationship with the organisations customers, suppliers, competitors,
and capital markets (Singh and Singh, 2013). Singh and Singh (2013) concluded that
continuous improvement is a dynamic process that concentrates on the relationships
between improvement programmes, services, materials and organisations customers,
suppliers, competitors, and capital markets. Heavey et al. (2014) in their study proposed a
continual improvement frame work that contained customer value co-leadership,
customer value focused strategic objectives, improvement knowledge specialisation and
methodology improvement. The result showed that their frame work increased
organisation return on investment. Hence, the relationship between continuous
improvement and organisational performance is hypothesised as follow:
H1e There is a statistically significant relationship between the top management
commitment and the organisational performance of Jordanian courier service
firms.
3 Research framework
4 Research methodology
4.1 Measures
In this study, five constructs were used to measure TQM practices, which are: customer
focus, training and education, teamwork, continuous improvement, and top management
commitment. Whereas, four constructs were used to measure organisational performance,
which are: quality outcomes, customer satisfaction, financial performance, and
innovation. The study instrument consisted of a questionnaire, which was distributed by
hand to the employees. A total of 35 questions were included in the questionnaire. All
responses were collected in the same day of the distribution. The questions were adapted
from reviewed literature and previous study of Al-Refai and Ghnaimat (2011). The
questionnaire consisted of closed-ended questions, where the respondent is presented
with a five-point Likert scale. A scale dimensions were clarified as follows: (1 = Strongly
disagree, 2 = Disagree, 3 = Neither agree nor disagree, 4 = Agree and 5 = Strongly
agree). Questionnaire statements shown in Appendix.
4.4.2 The second stage: screening the data for outliers and checking the
normality
Using simple box plot in SPSS, 51 data points were identified as outliers and have been
deleted, all the remaining points will be used for further analysis, thus; the final sample
consisted of 114 respondents, which yielded a survey response rate of 42%. The
TQM practices and organisational performance in Jordanian courier services 267
skewedness and Kurtosis of the data were checked and the data that deviated from
(Z = 1.96) were delated. Eight variables have been dropped from the analysis.
4.5.2 Reliability
Composite reliability for the remaining constructs was estimated using reliability
coefficient Cronbachs alpha. It was found that Cronbachs alpha coefficient for all
remaining variables equal 0.878, while Cronbachs alpha coefficient for TQM practices
and organisational performance shown in Appendix. The analysis revealed the criteria,
Cronbachs alpha 0.6, therefore, the data are consistent and reliable (Sekaran and
Bougie, 2010).
Also, Table 1 indicates that courier services companies perceived top management
commitment (with the highest mean scores, i.e., M = 4.45) to be the most dominant TQM
practice within their companies followed by customer focus (M = 4.24) then training and
education (M = 4.15) followed by Teamwork (M = 4.14) and continuous improvement
(with the lowest mean scores, i.e., M = 4.07).
Table 1 Descriptive analysis of the study constructs
Standard
TQM practices Minimum Maximum Mean Variance
deviation
Customer focus 3 5 4.24 0.553 0.306
Continuous improvement 3 5 4.07 0.475 0.225
Training and education 2 5 4.15 0.778 0.606
Teamwork 2 5 4.14 0.786 0.617
Top management commitment 3 5 4.45 0.596 0.356
Performance 4 5 4.21 0.409 0.168
multiple regression test revealed that TQM practices have (f = 21.307) and (p = 0) which
indicated that these practices have a significant effect on organisational performance with
(p < 0.05). Therefore, Hypothesis 1 was supported. According to these results, the value
of R2 (0.497) means that 49.7% of the variance accounted for organisational performance
can be explained by TQM practices. The multiple regression results of this hypothesis are
shown in Table 3.
Table 3 The multiple regression results of TQM practices and organisational performance
B
Independent variables B f* P* R R2 Result
(constant)
Customer focus 3.070 0.269 17.085 0.000 0.364 0.132 H1a
supported
Continuous improvement 2.080 0.523 65.178 0.000 0.607 0.368 H1b
supported
Training and education 3.337 0.211 21.384 0.000 0.400 0.160 H1c
supported
Teamwork 3.342 0.210 21.648 0.000 0.402 0.162 H1d
supported
Top management 2.743 0.330 33.652 0.000 0.481 0.231 H1e
commitment supported
Note: *Significant at P < 0.05.
270 R.J. Sweis et al.
In sum, the purpose of this paper was to study the relationship between TQM practices
and organisational performance in Jordanian courier service firms. Our research casts a
strong light on TQM practices to determine which practices influence a firms
performance the most. The results showed that continuous improvement has a
significantly positive effect on the firms performance.
It is interesting that strong predictor of performance is the continuous improvement
which is considered the main pillar of the TQM philosophy. This result is consistent with
Joiner (2006), who claims that: One of the central tenets of effective TQM
implementation is employees commitment to continuous improvement of processes.
All studied variables, customer focus, continuous improvement, teamwork, education
and learning, and top management commitment, are positively and significantly
correlated with firms performance. This is in agreement with the results of Terziovski
and Samson (1999).
Many studies report a positive relationship between TQM and performance (e.g.,
Abdullah et al., 2012; Joiner, 2006; Kaynak, 2003; Samson and Terziovski, 1999; Sweis
et al., 2013). Another verification of positive relation was noticed from the mean value of
responses, which was around 4, this represents the mean agree in Likert scale, and
therefore the results support all hypotheses.
In general, these results are important for courier service firms in Jordan. It calls for
the managers of courier service firms to continually seek ways to improve their
performance. This requires support of top management to do the best by training the
employees, allocate financial resources for improvement purposes identify customer
needs and encourage teamwork. They also should reinforce customer focus culture
contact with customer to satisfy and exceed customers expectations. All mentioned
above practices should be included in these firms new strategy to achieve the future
vision about quality of the service. Also, from these results, it can be concluded that for a
single courier firm to improve its performance, it must focus on continuous
improvements. Our study was a cross sectional and descriptive sample at a given point in
time. The framework of data was chosen carefully to reflect the major TQM practices
which may be found in any service firm.
Our data distribution provided small evidence about the lags between the existence of
practices and performance. We should point out here that this study has some limitations
that should be understood to determine the future research direction. Firstly, results
obtained from a local area; that may differ for firms located in different areas operating in
different cultural, environmental and political conditions. This means that future studies
should include the influence of culture on the relationship between TQM practices and
service firms performance. Secondly, relying on one courier service firm with relatively
small sample size puts constraints on the generalisability of this study. This implies the
need for using a larger sample. Therefore, we suggest further stream of field research of
longitudinal studies that would measure TQM element across a longer time period,
examining the relation and the development through time. This might lead to an
improvement of those measures and better answering the question what shall we
change?
TQM practices and organisational performance in Jordanian courier services 271
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Appendix