Investigating changes in TQM’s effects on corporate social performance and financial performance over time

The implications of smart logistics policy on corporate performance: Evidence from listed companies in China

Since the emergence of smart logistics as a vital paradigm, it has garnered significant interest from independent firms and governments worldwide, including China. This study aims to examine the relationship between Smart Logistics Policy (SLP) and firm performance both theoretically and empirically. Utilizing data from A-share companies listed on the Shanghai and Shenzhen stock exchanges between 2012 and 2017, this study analyzes the relationship between SLP and firm performance using Propensity Score Matching (PSM) and Difference-in-Differences (DID). The results indicate that SLP significantly enhances a firm's financial performance. Additionally, a heterogeneity test on financial performance reveals that the impact of SLP varies based on ownership and industrial sector. Unexpectedly, SLP has a negative impact on corporate social responsibility (CSR) performance. The heterogeneity test on CSR performance shows that the SLP effect on CSR exhibits no significant difference based on ownership. Furthermore, the impact of SLP on CSR is significantly greater for manufacturing firms compared to non-manufacturing firms. Consequently, this study offers theoretical support and empirical evidence regarding the effects of SLP on firm performance.

The boosting of the total quality management on corporate green growth in emerging markets: the mediating roles of corporate social responsibility and customer loyalty

Purpose

The primary purpose of this research is to examine how total quality management (TQM) boosts corporate green growth (CGG) with the involvement of corporate social responsibility (CSR) and customer loyalty (CL) as mediators in the relationship between TQM and CGG for small- and medium-sized enterprises (SMEs) in an emerging economy.

Design/methodology/approach

This research adopts a quantitative approach. According to the scope of this study, constructs of TQM, CSR, CL and CGG and the conceptual relationships between them are established using a systematic literature review. This study uses enterprise-level primary data collected from a questionnaire-based survey. The respondents are those holding managerial positions in their enterprises. There were 424 valid responses obtained following the necessary screening steps to ensure the eligibility of the collected data for analysis using AMOS version 20.

Findings

This study reveals that TQM has a positive and significant relationship with CSR, CL and CGG. Amongst these direct connections, TQM has the most substantial influence on CGG, followed by CL and CSR. Furthermore, the findings assert that CSR positively and significantly affects CGG and CL. When comparing the weighting of these effects, the results show that the impact of CSR on CGG is stronger than that on CL. Furthermore, the results confirm that CSR and CL partially mediate the relationship between TQM and CGG, both independently and simultaneously. The article also discusses the theoretical and managerial implications based on the stated findings.

Originality/value

The originality of this study stems from its contribution to enriching the body of the current literature on TQM and its combined influence on corporate performance. In this respect, this study adds to the existing literature by providing additional empirical evidence on the mechanism by which TQM boosts CGG with the involvement of CSR and CL in mediating the stated relationship between TQM and CGG for SMEs in an emerging economy. To the best of the author’s knowledge, such holistic incorporation is rare in the current literature. Furthermore, this study sheds light on the TQM enabling factors that are extended beyond the quality or technical scope as previously assumed. The stated contributions deserve to be originally derived from the attempt of this scientific work that may be of interest to academics, professionals and business practitioners.

Sustainability and Quality Management: has EFQM fostered a Sustainability Orientation that delivers to stakeholders?

Purpose

As a Quality Management (QM) framework, the European Foundation for Quality Management (EFQM) Excellence Model has stakeholder management at its core. In EFQM (2012), based on which assessments were made until 2021, “creating a sustainable future” was a fundamental principle, but how it translated to a Sustainability Orientation and delivered to stakeholders remains questionable. This study aims to investigates the Sustainability Orientation within EFQM (2012) and its associations with Results for stakeholders.

Design/methodology/approach

Longitudinal assessments of recognized-for-excellence organizations by a partner of EFQM are considered. Using factor analysis, scores on the sub-criteria that defined “creating a sustainable future” are investigated, and a Sustainability Orientation is inferred. Panel regressions and structural equation modeling assess the correlations between Sustainability Orientation and Results. A qualitative analysis follows, where sustainability reports from role-models within this population are text mined to examine whether and how they reflected the guidance in EFQM (2012) concerning “creating a sustainable future”.

Findings

Direct and indirect positive associations between the Sustainability Orientation implied by EFQM (2012) and stakeholder-performance are confirmed. Yet, inferences from text mining of reported priorities of role-models of excellence illustrate that EFQM (2012) might have driven different strategies towards sustainability.

Originality/value

Despite conceptualizations that the EFQM model embeds a Sustainability Orientation, to the best of the researchers’ knowledge, its existence and likely impact remain to be examined. By combining longitudinal statistical analysis, structural equation models and text mining, consistent insights on the link between Sustainability Orientation and organizational performance are obtained.

Innovation mediating relationship between TQM and performance: cases of industrial certified companies

Purpose

The purpose of this research is to analyze the reciprocal relation between total quality management (TQM) and innovation (product innovation and process innovation) and their impact on operational and financial performance.

Design/methodology/approach

The data were obtained from a survey of 205 manufacturing companies. Structural equation modeling (SEM) was performed to evaluate the research model.

Findings

The results reveal that there is a reciprocal relationship between TQM and innovation. Moreover, the findings indicate a significant positive effect of product innovation and process innovation on operational performance and insignificant direct impact of TQM on operational performance. However, this effect is significant when it is mediated through product innovation and process innovation.

Research limitations/implications

This paper helps practitioners to understand how TQM practices support both product and process innovation and the role of the latter in promoting the implementation of TQM practices and ensuring operational performance.

Originality/value

This study presents an innovative approach since it is among the first research studies that provide empirical evidence to a reciprocal association between TQM and innovation. Additionally, this paper examines the dimensions studied in different aspects. It considered financial performance and operational performance, and with respect to innovation, this dimension was analyzed through two different perspectives, namely product innovation and process innovation. This study is also among the first and few research studies that have studied the mediating effect of innovation.

Scale development and validation of total quality and socially responsible management (TQSR-M) framework: dual competitive strategy for management

Purpose

This study aims to develop a valid and reliable scale for measuring an integrated total quality and socially responsible management (TQSR-M) model, which affects business excellence.

Design/methodology/approach

Data were collected through a questionnaire in two phases (first for scale development and second for scale validation purpose) from managers employed in Pakistan Stock Exchange (PSX) listed companies. The structural equation modeling technique (SEM) was used to develop and validate the measurement and structural model.

Findings

This study confirmed the empirical validation of the eight distinct dimensions (top management, strategic planning management, human resource management, supplier management, customer management, social/community management and environmental management) of TQSR-M. Moreover, the validation of the TQSR-M model is further confirmed by testing the relationship between TQSR-M and the hypothetically associated business performance variables through SEM.

Research limitations/implications

The measurement scale helps companies assess the TQSR-M model related to business excellence. It assists managers in identifying the factors for implementing total quality management (TQM) and corporate social responsibility (CSR) practices in their organization for developing TQM and CSR plans, policies and strategies.

Social implications

This study confirmed that combined TQM-CSR approaches are potential sources of achieving business excellence, sustainable competitive advantages and improving the quality of life of the workforce, local communities and the environment in particular and even of society in general.

Originality/value

Despite such studies exploring the association between TQM and CSR, it remains unclear how the integration of both the concepts develops. Academics and managers lack a tool to measure TQM-CSR together. Therefore, this study integrates both distinct areas of TQM and CSR into a single comprehensive model by developing a measurement scale.

Implications of Green Logistics Management on Sustainable Business and Supply Chain Performance: Evidence from a Survey in the Greek Agri-Food Sector

Green agri-food supply chains are increasingly attracting research interest, owing to their potential capacity for resilience against recent crises (e.g., financial, COVID-19) as well as end-consumers’ concerns on sustainability issues. In this context, this paper aims to explore the relationship between green supply chain management practices and three different performance aspects, namely, supply chain, green (environmental) and business performance, and controlling for environmental dynamism. Field research was conducted through a structured questionnaire contacted to 134 executives of firms in the agri-food sector in Greece. The results reveal that information sharing, logistics networking and transportation are the most powerful factors that impact sustainable, business and supply chain performance. In addition, green packaging is related to financial and social performance aspects. Interestingly, green warehousing and logistics emissions failed to establish any relationship with performance outcomes. The conclusions and recommendations drawn in the present study are expected to provide meaningful guidance for the supply chain decision-making process, as logistics managers are becoming increasingly aware of exploiting all available resources, knowhow and competitive advantages for attaining sustainable performance.

The effect of total quality management-enabling factors on corporate social responsibility and business performance: evidence from Vietnamese coffee firms

Purpose

This article aims to evaluate total quality management (TQM)-enabling factors' impact on corporate social responsibility (CSR) activities and business performance through evidence from Vietnamese coffee firms.

Design/methodology/approach

Based on collecting data via in-depth face-to-face interviews with employees, who are working in the Vietnamese coffee companies. The partial least squares structural equation modeling (PLS-SEM) approach has been employed to investigate the relationship among the TQM-enabling factors, corporate social performance (CSP) and business performance.

Findings

A total of 13 TQM-enabling factors have been identified and divided into two categories, namely human and functional. The statistical results revealed a positive signal to remarkably enhance CSP and business performance by adopting those TQM-enabling factors into Vietnamese coffee firms.

Research limitations/implications

The framework model of this research should be evaluated in different contexts worldwide or in another sector that can further identify the TQM-enabling factor and the correlation among these constructs.

Practical implications

This article provides top managers of Vietnamese coffee firms with knowledge of TQM-enabling factors that may enable them to meet superior performance, including CSP, finance and reputation.

Originality/value

This is a unique study to employ the approach into the Vietnamese coffee industry context up-to-date, which is one of the essential sectors affecting Vietnam's sustainable development.

Autobiographical internal dialogue on TQM

Purpose

To present the internal dialogue of a TQM practitioner using the conceptual lens of reflective practice.

Design/methodology/approach

This study used a pragmatic philosophical approach to collect qualitative critical reflection data and quantitative career construction data from stratified and purposively sampled respondents, using structured questionnaires. The qualitative data were analyzed through reconstruction, while the quantitative data were analyzed through co-construction using the percentage agreement value and Wilcoxon–Mann Whitney test.

Findings

Five questions were found to be valuable for steering the internal dialogue for critical reflection, thus recommended as a must-have in a TQM practitioner's toolkit. This study found the career adapt–abilities scale to be a valuable tool for assessing the career construction of a TQM practitioner. This was supported by a 64% agreement and non-significant difference between the two groups of raters used, p < 0.05 (U = 3356.5, W = 7451.5, Z = 1.9826), two-tailed.

Research limitations/implications

The pragmatic philosophical stance used in this study lends it to a certain level of subjectivity. However, the inputs from the three other participants neutralize the subjectivity. Most notably, this study is not about consensus-seeking but rather verifiable/testable self-reflection.

Practical implications

The theory-informed results presented in this study are useful for the continuing professional development of TQM practitioners.

Originality/value

This study provides insights for applying an individual-level self-assessment tool for TQM implementation.

Toward a Quadruple Bottom Line: Social Disclosure and Financial Performance in the Banking Sector

The present study aims to analyze the existence of a possible significant relationship between social disclosure and financial performance in banking institutions. This phenomenon was analyzed by considering the percentage of female executives on boards, and the implementation of the equal opportunity policy when it was applied. We used a sample of 61 banks from European Union countries (between 2015–2017), and sampling was environmental, social, or governance (ESG)-driven in order to capture the effect of non-financial disclosure provided by Bloomberg. A cross-section econometric model was built in order to examine the relationship between the percentage of female directors on boards and the equal opportunity policy. Both the independent variables of banks and performance indicators were adopted as dependent variables. Our study provides empirical evidence that while there is a lack of efficiency and performance when boards are fragmented, the enactments of equal opportunity policies create a good reputation for the firm and the positive performance of staff. The study aims to contribute to the ongoing debate on social sustainability and on the phenomenon of the glass ceiling, and provides political and entrepreneurial implications.

Country and sector effects on the relationships among TQM practices and key performance measures

Purpose

The purpose of this paper is to analyze if and how country- and sector-related contingency factors affect the implementation of TQM practices and various performance measures within a TQM-performance relationships model framework.

Design/methodology/approach

The authors used data from 156 firms in Turkey and 132 firms in North Cyprus (NC) to test the model relationships by utilizing multiple group structural equation modeling (SEM).

Findings

The study finds support for both the universal and the contingency argument within the context of country and sector analyses. Although our findings suggest no differences across the two countries, the authors find evidence for differences across sectors in terms of their TQM practices and performance outcomes. In the case of NC firms, the direct effects of TQM on human resource results and customer results constituted the missing linkages in the performance excellence framework.

Research limitations/implications

This study suffers from the same limitations common to all survey research. However, it contributes strongly to the limited TQM contingency research by providing new findings and insights. This study must be replicated in different countries and other types of contextual factors must be used to determine if and how they moderate the model relationships. Other theories are also needed to better explain some of the relationships.

Practical implications

There needs to be a more holistic approach to quality management and increased institutional support for quality initiatives in developing countries. Through proper alignment and integration of their different components, organizations can realize maximum improvement in their business results. Understanding the sector level contingencies before implementing a performance excellence model is also recommended.

Social implications

The study has several social, economic and policy implications, including the need to improve employees’ work environment to improve their lives and prevent brain drain; to pass legislation to improve lax consumer laws; to found quality institutes to promote the education, training, qualification and professional development of employees working in the various sectors of the economy; and for government and employers to realize the importance of valuing stakeholders and delivering value and results to them to ensure long-term success.

Originality/value

This is one of the few studies in TQM contingency research that tests various relationships among TQM and business results by using country and sector as contingency factors.