Nature of Relationship between Total Quality Management Practices and Business Performance of K

Standardized Indirect Effects (Group number 1 - Default model)

Strategic
Leadersh Supplier Custome Informat Process_ Business
_Q_Mag HR_Mgt
ip _Mgt r_Focus ion_Mgt mgt _Pfm
t
Supplier
.000 .000 .000 .000 .000 .000 .000 .000
_Mgt
Custome
.806 .000 .000 .000 .000 .000 .000 .000
r_Focus
Strategic
_Q_Mag .307 .337 .000 .000 .000 .000 .000 .000
t
Informat
.708 .250 .283 .000 .000 .000 .000 .000
ion_Mgt
HR_Mgt .897 .317 .358 .941 .000 .000 .000 .000
Process_
.930 .186 .210 .551 .742 .000 .000 .000
mgt
Business
.817 .554 .184 .485 .652 .515 .000 .000
_Pfm

Total Effects (Group number 1 - Default model)

 Leadershi Supplier_ Customer Strategic_ Informati Process_ Business_
HR_Mgt
p Mgt _Focus Q_Magt on_Mgt mgt Pfm
Supplier_
.713 .000 .000 .000 .000 .000 .000 .000
Mgt
Customer
.884 1.240 .000 .000 .000 .000 .000 .000
_Focus
Strategic_
.908 .409 .330 .000 .000 .000 .000 .000
Q_Magt
Informati
.664 .299 .242 .731 .000 .000 .000 .000
on_Mgt
HR_Mgt .828 .373 .301 .912 1.247 .000 .000 .000
Process_
.870 .752 .179 .541 .740 .594 .000 .000
mgt
Business_
.768 .664 .158 .478 .654 .524 .883 .000
Pfm

Standardized Direct Effects (Group number 1 - Default model)

Leadersh Supplier_ Customer Strategic Informati Process_ Business

HR_Mgt
ip Mgt _Focus _Q_Magt on_Mgt mgt _Pfm
Supplier_
.911 .000 .000 .000 .000 .000 .000 .000
Mgt
Customer
.000 .886 .000 .000 .000 .000 .000 .000
_Focus
Strategic
.646 .000 .380 .000 .000 .000 .000 .000
_Q_Magt
Informati
.000 .000 .000 .743 .000 .000 .000 .000
on_Mgt
HR_Mgt .000 .000 .000 .000 1.266 .000 .000 .000
 Leadersh Supplier_ Customer Strategic Informati Process_ Business
HR_Mgt
ip Mgt _Focus _Q_Magt on_Mgt mgt _Pfm
Process_
.000 .444 .000 .000 .000 .586 .000 .000
mgt
Business
.000 .000 .000 .000 .000 .000 .879 .000
_Pfm

The initial conclusion that can be derived from this research is that leadership, one of the TQM practices, has demonstrated a significant impact
on business performance through indirectly linking with other TQM practices with a standard indirect value of 0.817 Table…...
This indicates that any improvement in the level of management leadership within TQM model in KMFC is enough to influence business
performance. The outcome of this study is consistent with Shafiq et al. (2017) found leadership had a significant
relationship with organizational performance both in financial and non-financial measurements.
The study was conducted in the textile sector in Pakistan using a structural equation model (SEM),which is different in context of region,
industry and analysis method from this study. This may explain the contradictory results derived from the study. A study by Talib et al. (2013)
found top management commitment had no significant effect on quality performance. In their study,
Sadikoglu and Olcay (2014) also concluded, leadership was not significant to all of the firm’s performance measurements which included
operational performance, inventory performance employee performance, innovation performance, social responsibility, customer satisfaction,
and
market and financial performance. The insignificant relationship of leadership in project performance is explained in some of the literature. In
project success literature, leadership is not regarded as one of the success factors in project management (Turner, 2014). In Yang, Huang,
and Wu (2011)

this research explains that leadership is indirectly related to business performance

through relationships between other TQM constructs as shown in final model. This is a similar conclusion to one of the studies conducted in
Malaysia (Fung & Ramasamy, 2015), who also claimed, while the execution of leadership does not directly influence project performance, the
team effectiveness resulting from leadership enhancement is likely to lead to better performance. This explains why leadership is not significant
to project performance as the relationship is amplified by the factor of teamwork. One of the findings in Yang et al. (2011), stated that the higher
the complexity level of the projects the more likely the projects are to be successful compared to those with lower complexity. The complexity of
the project plays a moderating role in enhancing project performance and if applied
to this study, project complexity could be an influencing factor that explains the relationship between leadership and project performance. In
other words, the project conducted by the
contractors in this study may consist of residential or shop lots with a lower level of complexity
and where the role of leadership has not improved project performance. Fung and Ramasamy
(2015) explained that project performance is not directly dependent on leadership but on other
factors. There are other factors that a play a mediating role in the relationship between leadership
and business performance (Lo, Ramayah, & De Run, 2010). It is understandable not all TQM practices
have a significant relationship with project performance. It may be the case some TQM practices
affect performance rather indirectly through the application of other, additional TQM practices or
factors. In this study, it can be concluded leadership does not have a direct significant effect on
project performance. There is a possibility the role of leadership on project performance is
mediating through other factors and this may explain why leadership does not play a significant
role in enhancing project performance as claimed in the general management literature.

Customer focus
The findings of this study show customer focus is indirectly related to business performance through strategic quality management, information
management, human resource management and process management, this is shown in Table 4.29 with a value of 0.184 and without direct effect
to business performance Table 4.28 with a value of 0.000. This finding was consistent with (Singh et al., 2018) the relationship between
customer relationship for TQM practices and organisation performance is strongly supported and significant .
In H2, the positive
relationship of CSR for TQM practices and OP was proposed. The
path coefficient (0.71) and t-value (4.880) at a significance of p<0.001
strongly supports the hypothesis. The results are consistent with the
previous studies of Zakuan et al. [127], and Sadikoglu & Zehir [95].
is an important aspect of TQM practices to enhance the
organisation performance.
not a vital determinant of project performance

The findings of this study show customer focus is not a vital determinant of project performance
This signifies understanding customer needs and the efforts of fulfilling customer satisfaction are not a priority in the construction industry and
they do not affect project performance. Talib et al. (2013) discovered customer focus was one of the TQM factors not significant to quality
performance
for Indian service companies. In their study, customer focus had an indirect relationship
with quality performance through continuous improvement. Another study by Sadikoglu and Olcay
(2014) also revealed customer focus was partially correlated with organizational performance in
Turkish manufacturing and service industries. In their study, customer focus only significantly
related to two out of seven organizational measurements (i.e. operational performance and social
responsibility). Although both Talib et al. (2013) and Sadikoglu and Olcay (2014) conducted studies
in different countries and industries, they both showed similar outcomes to this study. According

Table 2.1 : Summary of previous work done on TQM implementation in MSMEs

Reference/Author Study Year Location Method Findings/Conclusions

1 (Kharousi et al., The challenges of 2019 OMAN Inductive approach, The highest challenge face Omani SMEs is
2019) implementing TQM system questionnaire, the high cost of implantation the TQM in their
 in OMAN SMEs
2 (Elfargani, 2019) Total quality management 2019
in Libya manufacturing
SMEs performance in
Developing country
3 (Shafiq et al., The effect of TQM on 2017
2017) Organizational
performance : empirical
evidence from the textile
sector of a developing
country using SEM
4 (Singh et al., Impact of TQM on 2018
2018) Organizational
performance : The case of
Indian manufacturing and
service industry
5 (Jabbarzare & Total Quality Management 2019
Shafighi, 2019) Practices and
Organizational
Performance
6 (Tejaningrum, Relationship of total 2020 Indonesia
2020) quality management to
quality product and
corporate performance
ANOVA for analysis ventures followed by lack of knowledge and
lastly is complexity of setting up TQM policy.
Libya Descriptive Quality efforts may not necessarily lead to
statistics , t-test, any positive improvement in financial
correlation and step performance at once.
regression analysis
Pakistan Questionnaire and The findings of this study indicated that TQM
structural equation practices has a highly positive effect on
modeling. organizational performance.
India Questionnaire and The study confirms positive relationship
SPSS-Amos between TQM and organization performance.
MalaysiaQuantitative TQM practices are significantly correlated
approach and with organizational performance.
Questionnaire,
used .Regression
analysis
Questionnaire and
descriptive Quality of products perceived by
consumers is influenced by the
implementation of TQM, the better SMEs
implement TQM, the better the product

7 (Alanazi, 2020) The mediating role of
primary TQM factors and
strategy in the relationship
between supportive
TQM factors and
Organizational results: An
empirical assessment using
the MBNQA model
8 (Nugroho, 2018) Analysis of Total Quality
Management (TQM)
implementation in Small
Medium Industries
Thomas
9 (Ssempala & Determinants of growth of
James, 2018) Micro, Small and Medium
Enterprises (MSMEs) in
Developing Countries
Evidence from Rubaga
Division, Kampala District
Uganda.
quality
2020 Saudi Questionnaire and Supportive factors enhance primary factors,
Arabia structure equation strategy mediates the relationship between
modeling supportive factors and primary factors, and
primary factors mediate the relationship
between supportive factors and results.
2018 Indonesia Questionnaire and Most of IKM in Indonesia have implemented
structural Equation TQM, operational factors give results that
modeling small and medium industries have
implemented quality management in their
organization processes.
2018 Uganda Cross Sectional Managerial skills is the major significant
Survey, factor influencing the growth and
questionnaire, Linear performance of MSMEs in the region.
regression analysis