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ABSTRACT
The objective of this study is to observe the importance of “hard” and “soft” quality management
aspects, association between soft-hard TQM elements and their impact on service. This study also
analysis the outcome of “hard” and “soft” TQM components on Service Quality pursuits as well as
verifies the statements about TQM’s multidimensionality regarding service quality. Empirical data
was drawn from 190 Pakistan service companies using questionnaire method. Hierarchical
regression analysis was adopted to examine the hypotheses of this research. Results revealed that
both aspects of hard-soft TQM perform an important role in enhancing service quality of service
organizations. Final results demonstrated that all four variables of soft TQM were significantly
connected with hard TQM variables; displaying the impact of soft-hard TQM factors on service
quality. In accordance with the outcomes of this research, the usage of “soft” and “hard” TQM
components can lay the foundations for enhancing its service quality. This research contributes to
quality management, thereby theoretically suggesting and empirically examining the framework and
analysing the integration between soft-hard TQM dimensions. This paper also tests the available
claims about TQM’s multidimensionality as well as its multidimensional reference to service quality.
The suggested framework emphasizes that productive organizations should concentrate on a mixture
of both soft or behaviour factors and the hard systems-oriented elements of TQM to attain better
service quality to achieve customer satisfaction and loyalty. Accordingly, both soft and hard
practices are important for the rendering of service quality, and soft factors assist in enhancing hard
factors. This provides the empirical verification concerning the direct effect of soft-hard TQM on
service quality to financial services firms in Pakistan.
INTRODUCTION
The significance of the service sector in recent times is demonstrated in all areas of
services of worldwide economies. Regarding this competitive environment, the service
firms need to be swifter, leaner, perform more effectively and offer superior service
quality in an effort to remain competitive (Shahin & Alipour, 2006). Competitive
environment in the present marketplace is evolving frequently because there are a lot of
competitors that provide the same products and service for the customers. In an effort to
take on other competitors as well as to reign over industry, a firm needs to fine-tune and
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organize the organizational strategies in a more effective and efficient way. Service
quality being a key way of measuring organizational performance is constantly persuading
the interest of financial institutions and is still the main topic on services marketing
literature and practice (Lasser et al., 2002). The curiosity is basically powered by the
belief that good quality of service brings about customer satisfaction and loyalty and leads
to higher enthusiasm to recommendation, decline in customer complaints and enhanced
customer retention rates (Sangeetha & Mahalingam, 2011). Taking expanding place of
service organizations into consideration in a variety of fields of economics and the
significance of quality in competitive fields, service quality is termed as one of the
strategic levers and key axes in the competition scene. Due to all above mentioned reasons,
it is important to examine and enhance their service quality. Service firms must discover
their customers' needs and expectations by look into the trust and satisfaction measure of
their customers at particular time period, and perform their utmost to further improve their
professional services. If firms offer, maintain, and improve customer satisfaction and trust,
they'll be equally profitable (Teimouri et al., 2012).
A few of the past studies have devoted to the role of hard and soft areas of TQM
on TQM achievements and the service quality. Published results of the past researches
were contradictory or inconclusive (Gadenne & Sharma, 2009). Interestingly, there is
comparatively handful of quality management studies including Pakistan's service
providing firms, especially as regards to hard and soft elements of TQM. Consequently,
this research includes various goals of examining the connection of TQM and quality of
service in the context of Pakistan’s service firms, and especially the role of hard and soft
elements of TQM on service quality. The key objective of this study is to analyse the
outcome of “hard” and “soft” TQM components on Service Quality pursuits, and results
were examined through regression analysis. Therefore, this research has the numerous
pursuits of examining the relationship between soft-hard TQM in the context of Pakistan
service firms in general and the role of soft-hard elements of TQM on SQ in particular.
TQM
SERVICE QUALITY
In the last three decades, there was sound demand for studies regarding service quality,
paying attention to subjects such as service marketing, service operation. Recent papers
have discovered mixed approaches to measuring service quality. However, among the
existing platform, the foremost useful methods of service quality are the two-factor model
developed by Gronroos (1982), and SERVQUAL model suggested by Parasuraman et al.
(1988). Additionally, Gronroos (1984) introduced his two-dimensional framework for
quality of service. Gronroos asserted that quality of service is the working of two
parameters: technical quality and functional quality. Technical quality addresses issues
provided whilst functional quality involves the way it’s presented. Customer loyalty is of
exceptional significance according to the current literature since it is a major factor in
enhancing company’s financial performance in today’s business climate. Outstanding
quality of service is of primary significance in increasing customer loyalty. There is a
positive relationship among quality of service and customer fulfilment. Nevertheless,
designing of scale to determine the service quality in various services which is offered by
service providers is required (Parasuraman et al. (1988). It’s among the list of basic
instruments which help to determine perceived quality of service. It has been validated by
several earlier researches. A commonly employed SERVQUAL model is comprised of 5
dimensions with reliability, tangibles, assurance, responsiveness, and empathy. In spite of
its constraints, SERVQUAL has been largely used by both practitioners and academics,
and practiced as the theoretical groundwork for additional exploration in several sectors
(Carman, 1990; Babakus and Boller, 1992).
Sohal and Prajogo (2004) discussed multidimensionality regarding TQM along with its
connection to organisational performance. The concept has been outlined by contradicting
discussions about the association around TQM and innovation performance (Prajogo &
Sohal, 2001). In accordance with Australian research, experts gathered TQM dimensions
into several groups: the more mechanistic component involves process management and
customer focus, while the more organic section includes people management and
leadership, whereas strategic plan along with info and examination were organized to be
the extra mechanistic group. However, it is not the same as the new mechanical group
because of its internal emphasis. Prajogo (2005) documented that it’s appearing to be no
substantial variations in degree of most TQM approaches and quality performance
between two industries. He discovered customer focus play most significant role in
achieving quality performance. Lagrosen and Lagrosen (2005) researched the impact
produced by “soft” TQM components, quality managing models and resources. These
scholars demonstrated that there's a correlation between how good quality management
operates and to precisely what level the organization explores “soft” TQM components.
The “hard” and “soft” TQM factors have both a direct and indirect effect on the quality
management outcomes. Particularly, “quality improvement” is influenced largely by “soft”
TQM factors and secondarily by “hard” TQM components. Customer satisfaction is
affected largely by “quality improvement” and secondary through “soft” TQM
components. “Market benefits” were affected largely by “customer satisfaction” and
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secondarily by “hard” TQM components (Fotopoulos & Psomas, 2009). Considering the
past literatures, we propose hypothesis as following:
H1: The extent of soft TQM implementation is positively linked to service quality.
Corbett and Rastrick (2000) stated in TQM that the ideal approach to enhance company
performance would be to continuously improve the routines performance. Process
management is a step-by-step methodology by which most of the sources of a company
are utilized in most effective and efficient way to accomplish performance (Sit et al.,
2009). On the other hand, Motwani (2001) stated that processing management enhances
the performance of every personnel and increases the expertise of the company. Lakhal et
al. (2006) reported that there's a significant correlation between the application of
statistical quality methods and company performance. Benchmarking is the technique for
comparing the details of performance, in and outside of the company. Strategic planning
makes use of the expansion and implementation of plans, boost associations with
suppliers, customers as well as business partners and enables in attaining short and long-
term objectives by means of participative plan (Teh et al., 2009. Indisputably, a significant
relationship has been found between tactical plan and level performance (Prajogo and
Brown, 2004), function issue (Teh et al., 2009), customer satisfaction (Sit et al., 2009),
and knowledge administration behaviour (Ooi et al., 2008). Rahman and Bullock (2005)
discovered that several hard QM elements, for example continuous improvement enablers,
using of JIT guidelines and technologies deployment also have an effect on company
performance (assessed by a component such as productiveness, customer total satisfaction,
quality of outcome, employee morale, and delivery performance). Utilizing the analytics
hierarchical process (AHP), hard elements of TQM were most preferred regarding their
execution compared to soft elements (Lewis et al., 2006). For instance, system
advancement and continuous enhancement were the most significant criteria of TQM.
Additionally, they described that small and medium enterprises (SMEs) could possibly
cope with hard elements of TQM a lot better than soft factors because they can become
more effortlessly quantified. Considering the past literatures, we propose hypothesis as
following regarding hard TQM components and quality of services:
H2: The extent of hard TQM implementation is positively linked to service quality.
According to Abdullah and Tarí Guilló (2012), even though some outcomes are
undetermined, on the whole, some soft and hard quality management aspects are likely to
be associated; the soft quality management components can have indirect and direct
influences on performance, while hard aspects are likely to be directly linked to
performance. Therefore, hard quality management might act as a mediating variable
between performance and soft quality management.
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Customer service
Service culture
Knowledge sharing
SQ
Continuous improvement
ICT usage
Information System
Quality
RESEARCH METHODOLOGY
Five-point Likert scale has been applied from prior studies for processing our constructs.
This survey questionnaire derived from four-page self-administered questionnaires has
been previously used in assessment of quality management practice in a variety of
researches. The members of the survey are qualified people pertaining to studying
concerns of this task. The entire 300 questionnaires have been distributed. 190
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questionnaires along with detailed feedback were obtained which shows a whole
responding rate of 63 percentages, this information was collected through ISO certified
companies from financial service sector in Pakistan. These statistical tools, including
multiple regression analyses, were applied to interpret the data.
TM CF SC KS
Tangibles 0.690** 0.582** 0.560** 0.535**
Reliability 0.503** 0.559** 0.624** 0.520**
Responsiveness 0.599** 0.374** 0.478** 0.306**
Assurance 0.579** 0.584** 0.644** 0.497**
Empathy 0.541** 0.551** 0.501** 0.465**
CI IU IS
Tangibles 0.636** 0.463** 0.591**
Reliability 0.520** 0.518** 0.566**
Responsiveness 0.513** 0.265** 0.483**
Assurance 0.522** 0.502** 0.578**
Empathy 0.599** 0.465** 0.478**
CI IU IS
TM 0.537** 0.304** 0.618**
CF 0.455** 0.307** 0.375**
SC 0.518** 0.324** 0.552**
KS 0.499** 0.471** 0.476**
TABLE 7. EFFECT OF ST ON HT
Variables CI IU IS
TM 0.275** 0.015 0.458**
CF 0.324** 0.116 0.150
SC 0.287** 0.065 0.367**
KS 0.260** 0.278** 0.225**
DISCUSSIONS
Hierarchical regression analysis was adopted to examine the hypotheses of this research.
Results revealed that both aspects of hard-soft TQM perform an important role in
enhancing service quality of service organizations. In accordance with the outcomes of
this research, the usage of “soft” and “hard” TQM components can lay the foundations for
enhancing its service quality. The outcomes undoubtedly revealed that both hard and soft
aspects of TQM positive and significant led to service quality.
Regarding soft TQM practices; top management support turned out to be the most
crucial exercise that influenced service quality (Beta 0.334, p < 0.01). This is certainly
consistent with past literatures that stated the vital function of management support is the
accomplishment of development programs for example TQM and Total Productive
Maintenance (TPM) (e.g. Abdallah, 2013 and Talib et al., 2013) and service quality. The
next most significant dimensions that influenced service quality were service culture
((Beta 0.305, p < 0.01) and customer focus (Beta 0.231, p < 0.01) respectively. Service
culture may result in superior service quality and more likely to bring about positive
effects. According to (Sierra and McQuitty, 2008), supportive service culture motivates
service employees to go one step further to deliver the customers’ needs which
consequently influences customers’ understanding of service quality. This outcome also
confirms the past studies that indicated employee service attitudes are outcomes of service
culture (Tsang, 2007) and employee attitudes considerably influence customer perceptions
of service quality (Yoon et al., 2001; Snipes et al., 2005; Yee, et al., 2010). Hence, it's
critical for service organizations to provide employee training programs to the front-line
employees since they provide the service that fulfils the customers. Service organizations
should also build a culture of training new employees.
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The results of this research presented evidence that productive organizations should
concentrate upon the mix of both soft or behaviour factors and the hard systems-oriented
elements of TQM to attain an enhancement in total service quality as well as to sustain
customer satisfaction and loyalty. Accordingly, both soft and hard practices are important
223
for the rendering of service quality, and soft factors assist in the enhancement of hard
factors. This provides the empirical verification concerning the direct effect of soft-hard
TQM on service quality to financial services firms in Pakistan. Service firms can improve
service quality and therefore customer satisfaction by acquiring support from top
management for their initiatives. Customer focus acts as the goal of improving service
quality by delivering the customer with an experience that the product or service delivered
has fulfilled or exceeded the customer anticipations. Companies can improve quality
customer service by creating a service culture, which signifies that workers are completely
well-informed of the product or service and enjoy outstanding communication abilities
and predicting the customer preferences before time. It is believed that high service
quality improves customer satisfaction, boosts market share, and adds to profitability of
organizations (Hoffman and Bateson, 1997). This paper facilitates the argument by
(Sureshchandar et al., 2001) that organizations possessing great service culture are highly
likely to offer extra reliable, reactive, empathetic services to the customers. Better internal
service cultures is likely to result in better service delivery that might contribute to
superior perceived quality of service from customer’s perspective. Customer focus
seemed to be positively associated with service quality. For that reason, the customer
focus is essential for higher quality service. As (Samat et al., 2006) mentioned that this is
crucial to help customers feel pleased about the particular services of which companies
delivers. The marketing of relationship should be considered by services companies in an
effort to attract new customers to make them loyal to their services.
This paper contributes to quality management by theoretically recommending and
empirically analysing the theoretical framework and examining the integration between
soft-hard TQM dimensions. This research shows that certain hard-soft TQM components
have a significant influence on service quality. The outcomes of this research reveal that
both soft and hard issues are necessary resource, which has sound influences on service
quality. Managers in Pakistan service organisations should recognize that the execution of
soft and hard quality management practices will enhance SQ which in turn leads to
improvement in customer satisfaction. The practitioners should know the
multidimensionality regarding TQM and pay attention to both soft-hard TQM dimensions.
To achieve a noticeable improvement in service quality, it is important for managers to
focus on every area of quality management like the soft and/or behavioural elements such
as customer focus, top management support, knowledge sharing and service culture and
the hard “systems-oriented” elements of QM, including information system quality,
continuous improvement, and ICT usage that in systems and tools which are essential to
assist the rendering of soft aspects.
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