Theorizing TQM: An Austrian and Evolutionary Economics Interpretation

Born out of management practice, the principles of TQM (total quality management) have had a profound and unparalleled impact on modern business history. However, as a body of practical knowledge, TQM has been largely atheoretical. As a consequence, this important management philosophy has remained amorphous and shrouded in considerable conceptual haziness and ambiguity. Recent theorizing, primarily emphasizing the application of organizational behaviour theories to TQM, has begun to provide greater clarity, but much work remains to be done. This paper attempts to contribute to this nascent theory‐building literature by employing theory from market process economics (MPE), namely, Austrian and evolutionary economics, which explains how processes of dynamic change, adaptation, and learning are driven by entrepreneurial creativity. We contend that the patterns in this body of theory match, to a remarkable degree, the patterns of practical knowledge contained in the TQM literature. We demonstrate this ‘pattern‐matching’ by showing that MPE effectively provides the theoretical underpinnings of TQM’s three main principles — customer focus, continuous improvement and teamwork — as well as the respective TQM topics of customer perceptions, adaptation in dynamic environments, and knowledge creation. Having established MPE as a credible theoretical lens for interpreting TQM, it can be used to clarify fuzzy areas that have remained in the TQM literature with the potential to take us beyond what we know now. We illustrate this with three examples that show how we can resolve debates in TQM over incentive systems, recognize that TQM embraces methodological pluralism in the collection and analysis of data, and highlight hidden dangers that attend benchmarking. While MPE has no monopoly on theoretical interpretations of TQM, it is unique in its ability to comprehensively cover the incredible breadth of this practical body of knowledge, and in its interpretation of TQM as a dynamic economic endeavour.     

探析全面质量管理与传统管理的区别

质量已成为全世界的共同语言。全面质量管理与传统管理是两种截然不同的管理范式。过去10年是全面质量管理的黄金时代,但从整体上看,全面质量管理在中国并没有惊人的表现。因此,我们不得不回头深入反思和重新认识全面质量管理,尤其是全面质量管理与传统管理的差异。为此,本文从基本概念着手,在顾客满意、组织领导与战略、业务流程、组织结构、组织学习与持续改进、考核与激励等方面探讨了全面质量管理与传统管理的区别。     

Contingency relationships of firm size,TQM duration,unionization, and industry context on TQM implementation—A focus on total effects

Past TQM literature has been inconclusive in resolving the validity of the universalistic approach versus the contingency approach of TQM implementation. In this paper we contribute to the resolution of this debate by using a total effects approach within the contingency perspective. We propose a culture-quality system design-outcomes framework for TQM implementation. We then use this framework to study the differences in total effects relationships among TQM constructs across four contingencies, firm size, TQM duration, unionization, and industry type. Data from a sample of 394 plants (SIC codes 20 through 39) are used to test the validity of our contingency model. Our results revealed that firm size, TQM duration, and industry type moderate the influence of total effects of culture (top management commitment, customer focus, and trust) on final outcomes (process quality, product quality, and customer satisfaction). These contingencies also moderate the influence of total effects of quality system design (design management, training, empowerment, quality information usage, supplier quality management, and process quality management) on final outcomes. The strongest contributor to variation in total effects across groups was industry type, followed by size and then TQM duration. To a lesser extent, unionization was a moderator in total effects relationships. These findings uniquely contribute to the emerging contingency theory of TQM implementation.     

Top management leadership,employee empowerment,job satisfaction,and customer satisfaction in TQM organizations: an empirical study

Top management leadership and employee empowerment are considered two of the most important principles of total quality management (TQM) because of their assumed relationship with customer satisfaction. As a result, many top management leadership and employee empowerment strategies and practices have been suggested in the management literature. However, few studies have been done to test this assumed relationship and determine which of these strategies and practices may be most effective in bringing about the intended results. This study surveyed organizations that have adopted TQM to determine the relationship between top management leadership, employees' empowerment, job satisfaction, and customers' satisfaction. The results reveal positive correlation between top management leadership, employee empowerment, job satisfaction, and customer satisfaction. Employee empowerment and improved levels of job satisfaction are facilitated by top management leadership and commitment to the TQM goal of customer satisfaction by creating an organizational climate that emphasizes total quality and customer satisfaction. Effective strategies for achieving employee empowerment and job satisfaction, together with top management leadership roles in a TQM environment, are identified and discussed.     

A Measure of Staff Perceptions of Quality-Oriented Organizational Performance: Initial Development and Internal Consistency

The present study originated from a university's effort to develop a Total Quality Management (TQM) system for improving the quality of staff services. This extends TQM into a major service sector, higher education, which has only recently begun to explore TQM applications. Integral to this effort was the development of an instrument for assessing service quality based on staff perceptions. The instrument was based on a core set of dimensions identified as common to the Malcolm Baldridge National Quality Award, and the psychology and management literatures. Initial support for this instrument came from high reliability coefficients for each of the component scales. Recommendations for further validation efforts and potential practical applications are also discussed.     

Service Quality Measures in Vietnam and Australia

Abstract

Satisfied customers are vital to creating and maintaining a sustainable advantage in the highly competitive business environment that applies today. Other forms of competitive advantage are easily lost, or copied by competitors. Consequently, customer satisfaction and service quality have been of considerable interest to researchers and practitioners alike over the last two decades, and a substantial body of formal academic work has emerged to address these issues. However, comparatively little work has been done to date in studying what managers of businesses actually do in practice to measure, and consequently manage, their customer satisfaction and service quality, and there has been even less work done on international differences in perceptions of these attributes. This paper reports the results of a comparative study of managers' perceptions of their customers' opinions of service quality in Australia (as an example of a developed country, 318 responses) and Vietnam (as an example of a country in transition from central control, 49 responses).     

Analyzing the impact of service provider empowerment on perceptions of service quality inside an organization

The purpose of the project was to analyze the perceptual linkages between empowerment and employees' perceptions of the service quality that they are able to provide for the organization. The service quality and empowerment literature are reviewed and connected in order to establish propositions about the relationship. The service quality literature also suggests that several other variables may influence service quality, and these are included in the investigation. A survey was administered to individuals employed in customer service positions in a catalog operation of a large retailer located in a major western city. The results suggest that the perceptual linkage between empowerment of individuals and the service quality that the service providers were able to deliver had a strong positive relationship in this organization. The empowerment components competence and impact were significantly associated with perceived service quality in separate multivariate regression analyses. In addition, the construct intrinsic rewards for quality service was highly associated with perceptions of service quality. Also, the extent to which service providers believe members of the organization value exceptional customer service (i.e., a service quality culture exists in the firm) had a strong, positive relationship with perceptions of service quality.     

A model for total quality management in higher education

Total quality management (TQM) is widely recognised as a management philosophy for improving customer satisfaction and organisational performance. However, there is no consensus over the critical success factors of TQM, in particular, in higher education (HE) and developing countries. Literature shows mixed results on the success and applicability of TQM principles in education, thus, underlining the need to revisit the application of TQM principles in HE. This paper identifies the critical success factors of TQM in Pakistani universities. Data was collected from faculty members of universities through questionnaires. The findings reveal that ‘leadership’, ‘vision’, ‘measurement and analysis’, ‘process control and evaluation’, ‘programs design and resources allocation’ and ‘stakeholder focus’ emerge as the critical success factors of TQM in HE. The findings have implications at macro, meso, and micro levels of HE.     

营业厅的客户服务期望管理

本文旨在通过对营业厅这一服务界面中客户服务期望的探讨,提出营业厅客户服务期望管理的思路和实施手段,为服务型企业获得更高的客户服务质量评价提供镜鉴。     

A physical examination of health care's readiness for a total quality management program: a case study

Initiating a total quality management (TQM) effort can be a time-consuming and costly effort for a hospital. Perceptions of management and employees are important in initiating TQM because people function as if perceptions are fact. Assessing these perceptions and determining the levels of readiness or resistance to change are important steps in reducing costs, thus increasing organizational ability to address proactively challenges to the implementation and ultimate success of a TQM effort. Key assessment criteria are discussed including a comparison of management and employee perceptions in one hospital.     

Analysing the importance of sustainability‐oriented service quality in competition environment

The logistics sector is one of the most important domains in the service sector in understanding the increasing scale of business activities along with globalization. Due to the nature of the service sector, where competition is increasingly concentrated, the main objective of firms is the creation of their strategy on competitive advantage in regard with knowing the level of quality of the services offered and the firm's image from the customers' point of view. Trying to adapt to the changing conditions of the market drives firms to integrate their competing areas into their sustainability dimensions (economic, social, and environmental) with the aim of increasing their perceived quality through differentiating their business to achieve a sustainable competitive advantage. The aim of this study is to examine the quality level perceived by logistics service providers in terms of triple bottom line approach and to determine the relationship between them for sustainable competition. In line with exploratory methods, factor analysis was used with the aim of finding out a new scale to the literature about the examination of the relationship between quality perception and corporate sustainability in the frame of competition. In this context, data of 120 logistics service providers were collected and analysed. According to the results, the content of the subject consists of nine factors and 29 interrelated subdimensions. As a result of the research, firms have emphasized on the importance of reaching the competition by expanding their quality perceptions within the scope of corporate sustainability in parallel with the increasing customer demands and expectations.     

感知服务质量与顾客满意和顾客忠诚关系的实证研究

在实践中,中国服务业发展迅速,但营销水平有待提高,很多管理人员对营销以及服务管理的理解有限。在理论中,对感知服务质量各个维度、顾客满意和顾客忠诚之间的关系讨论很多,尚无定论。实证研究发现,是顾客满意正向影响感知服务质量各个因子,而不是相反,说明基于交易的顾客满意会影响对服务进行长期综合评价的感知服务质量。只有忠诚度一个因子影响顾客忠诚,因此企业在培养忠诚顾客上应该有所侧重。顾客满意和顾客忠诚的关系被验证并非线性关系,在线性方程模型中未能验证成功。     

Service quality of travel agents in Turkey

Customer satisfaction is an important measure of service quality in travel agents. Customers’ perceptions about agents seem to have been largely ignored by agent management in developing countries. The assessment of service quality provides an important feedback for agents to assess and improve its service to its customers. The aim of this study is to develop a reliable and valid instrument measure customer satisfaction in travel agents. A questionnaire to measure the service quality of travel agents was used and a total of 217 customers in Turkey were interviewed. Factor analysis was utilized to determine the factor structure. The instrument of the customer satisfaction developed in this study provides insights to the researches who study the improvement of customer satisfaction with service quality of travel agents and decision markers.     

学生是高等教育真正的顾客吗?

高校的学生是否是真正的顾客取决于他们在高等教育不同过程所起的作用。本文阐明了这些不同作用,将帮助高校识别顾客及顾客的关注焦点,实施TQM,以提高高等教育质量,达到持续的顾客满意。     

Who is fit to serve? Person–job/organization fit,emotional labor,and customer service performance

This study investigates person–job (P–J) fit and person–organization (P–O) fit perceptions and relates these perceptions to employees' emotional labor and customer service performance. Data from a two‐point, time‐lagged study of 263 employees and 690 customers reveal that both P–J and P–O fit relate positively to deep acting and negatively to surface acting, in accordance with an emotional labor perspective. In addition, P–J and P–O fit are jointly associated with emotional labor, such that the positive link between P–J fit and deep acting is stronger, and the negative link between P–J fit and surface acting is weaker when P–O fit is high. Emotional labor partially mediates the interactive effects of P–J and P–O fit on service interaction quality and customer satisfaction; service interaction quality relates positively to customer satisfaction. These findings have multiple theoretical and practical implications.     

‘How would you measure something like that?’: Quality in a Retail Bank

In this paper we explore a case study of total quality management (TQM) within the financial services sector. We demonstrate that a ‘conformance to requirements’ approach towards TQM is concerned with increasing management’s physical and financial control over procedures, documentation, systems and people. Such an approach only partially addresses quality because (a) there can never be a precise ‘conformance’ and (b) this approach neglects customers and employees. We illustrate that often management do not understand the flaws/problematics and underlying philosophy behind TQM. Thus they continue to adopt ‘inconsistent’ approaches, such as attempting to control costs and employees while espousing the importance of the customer and the need for a trust-based culture. Yet, whether or not they understand the rationale behind TQM and attempt to widen their focus by considering people and customers more directly, we argue that management cannot easily adopt a ‘consistent’ approach because a preoccupation with controlling costs is bound up with career-based identities and hierarchical power relations. Ultimately we argue that management cannot control ‘quality’ in any simple top down way, essentially because of the ‘indeterminacy’ of labour, the ‘intangibility’ of customer satisfaction, and the complexity of organizational power and identity relations.     

The impact of supply chain agility on business performance in a high level customization environment

To improve business performance in rapidly changing environments, supply chain agility can be a crucial requisite to address responsiveness issues, especially in environments with high levels of customization. This paper examines the effect of supply chain agility on customer service, differentiation, and business performance. A survey research methodology was employed using a sample of 156 manufacturing firms that provide high levels of customization. In particular, structural equation modeling (SEM) was employed to evaluate the proposed model. The results suggest that supply chain agility influences customer service and differentiation positively. However, it does not affect business performance directly; instead, better business performance can be achieved and mediated through improved customer service and differentiation. In particular, differentiation through customer service is the most effective way to improve business performance, and supply chain agility can help to achieve high-level customer service. The paper advises managers on details of how to fulfil their business performance ambitions better through suggested key agile supply chain management activities.     

A gap model of purchasing's internal service quality: Concept,case study and internal survey

Traditionally, the monitoring of a purchasing department's performance is primarily focused on cost analysis and the evaluation of suppliers rather than on internal service aspects. Therefore, the main objective of this paper is to develop an instrument for the measurement of the internal service quality of purchasing departments. Based on the SERVQUAL and the general gap model of service quality, a specific gap model regarding purchasing's internal service quality was developed. Similar to previous research, both the perceptions of the actual service and the internal customers’ expectations of the service quality were included. In addition, the model contains a self-evaluation by contrasting the views (expectations and perceptions) of the internal customer with those of the purchaser. The application of this instrument in a large company demonstrates the general usefulness of this instrument. Statements of 145 internal customers and 36 purchasers were available for statistical analysis. The results of this analysis can be helpful in detecting weak points and sources of internal customers’ dissatisfaction.     

Some insights into customer orientation: an investigation of salespeople in Taiwan

Despite the claim that prosocial service behavior ratings influence sales performance (SP), an empirical discrepancy exists in relating prosocial service behavior ratings to actual SP. Furthermore, studies have seldom considered prescribed role and prosocial service behaviors together as important factors in influencing customer attitudes and SP. This article fills this void by examining the relative contribution of prescribed role and prosocial service behavior. Effective triadic data from 37 sales managers, 418 business customers, and 122 SP archives are used for exploring the relationships between customer-oriented behaviors and customer outcomes [customer satisfaction (CS) and loyalty intent] and percentage of sales quota attained. The principal results generally indicate that business customers place greater values on prosocial service behavior in predicting SP and CS, and that CS partially mediates the relationship between prescribed role service behavior and outcome variables.     

提高服务质量 促进企业发展

以石大科技为例,简要阐述客户在企业营销中的重要作用,通过对客户价值及客户忠诚度的分析,并针对目前中小企业客户服务方面存在的问题,提出通过改善营销环境、提高员工素质和做好客户跟踪服务等措施,赢得客户,使企业产品更加适应市场变化,从而提高企业的竞争能力,使企业能够长期健康稳定发展。