A Framework for Successful TQM Implementation and Its Effect on the Organizational Sustainability Development

Authors: Redha Elhuni, M. Munir Ahmad

Abstract:

The main purpose of this research is to construct a generic model for successful implementation of Total Quality Management (TQM) in Oil sector, and to find out the effects of this model on the organizational sustainability development (OSD) performance of Libyan oil and gas companies using the structured equation modeling (SEM) approach. The research approach covers both quantitative and qualitative methods. A questionnaire was developed in order to identify the quality factors that are seen by Libyan oil and gas companies to be critical to the success of TQM implementation. Hypotheses were developed to evaluate the impact of TQM implementation on O SD. Data analysis reveals that there is a significant positive effect of the TQM implementation on OSD. 24 quality factors are found to be critical and absolutely essential for successful TQM implementation. The results generated a structure of the TQMSD implementation framework based on the four major road map constructs (Top management commitment, employee involvement and participation, customer-driven processes, and continuous improvement culture).

Keywords: TQM, CQFs, Oil & Gas, OSD, Libya.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1336518

References:

[1] R. Hokoma, Khan, K. and Hussain, K. (2010), "The present status of quality and manufacturing management techniques and philosophies within the Libyan iron and steel industry", The TQM Journal, 22 (2):209 – 221
[2] B. Enquist, Edvardsson, B. and Petros, S.S., 2007. Values Based Service Quality for Sustainable Business. Managing Service Quality, 17(4), pp. 385-403
[3] M.J. Epstein, 2008. Making Sustainability Work: Best practices in managing and measuring social and environmental impacts. Sheffield: Greenleaf.
[4] O. Ihlen, Roper, J., 2011. Corporate Reports on Sustainability and Sustainable Development: ‘We Have Arrived’. Sustainable Development
[5] S.P. Sebhatu, 2008. Sustainability Performance Measurement for sustainable organizations: beyond compliance and reporting. (online) Available at: (Accessed 12 June 2012).
[6] V. Dinu, 2010. Commercial activity and the sustainable development. Amfiteatru Economic, XI(27), pp. 5-7.
[7] J. E. Post, J. E, Altman, B. W., 1994. Managing the environmental change process: Barriers and opportunities. Journal of Organizational Change Management, 7(4), pp. 64–81.
[8] W.E. Stead, Stead, J.G., 1992. Management for a small planet: Strategic decision making and the environment. Newberry Park, CA: Sage.
[9] R. Welford, 1995. Environmental strategy and sustainable development. London: Routledge Al-khalifa, K. N., and Aspinwall, E.M. (2008). "The Development of Total Quality Management in UK". The TQM Magazine, 12(3), pp.194-204.
[10] A. Crane, 1995. Rhetoric and reality in the greening of organizational culture. Greener Management International, 11(12), pp. 49–62.
[11] J. V Saraph, and Benson, P.G. & Schroeder, R.G. 1989. An instrument for measuring the critical factors of quality management, Decision Sciences, 20(4), pp. 810–829.
[12] A. Yusof, and Aspinwall, Case studies on the implementation of TQM in the UK automotive SMEs, International Journal of Quality &Reliability Management, Vol. 18 No. 7, 2001
[13] C. V. Fotopoulos, Psomas, E.L., 2009. The impact of "soft” and "hard” TQM elements on quality management results. International Journal of Productivity and Performance Management, 26 (2): 150-163.
[14] S. M. Ahmed, "Aoieong Raymond, T, and S. L. Tang, 2005."A Comparison of Quality Management Systems in the Construction Industries of Hong Kong and the USA". International Journal of Quality & Reliability Management, 22(2), pp.149- 161.
[15] R. S. Allen and R. H. Kilmann, 2001. Aligning reward practices in support of total quality management. Business Horizons, pp 77-84.
[16] J Dean and Bowen. D. 1994. Management theory and total quality: Improving research and practice through theory development’’, Academy of Management Review, 19(3), pp. 392–418.
[17] T. J. Douglas and W. Q. Judge 2001. Total quality management and competitive advantage: The role of structural control and exploration’’. Academy of Management journal, 44, pp 158 169.
[18] G.S. Easton and S.L. Jarrell 1999. The effects of total quality management on corporate performance, an empirical investigation”, Journal of Business, Vol. 71 No. 2, pp. 253-307.
[19] L. Nilsson, M. D. Johnson, and A. Gustafsson, 2001. ‘’The impact of quality practices on customer satisfaction and business results: product versus service organizations’’. Journal of Quality Management, 6, pp 5-27.
[20] D. Waldman (1994) ‘The Contributions of Total Quality Management to a Theory of Work Performance’ Academy of Management Review, 19, pp 510-536.
[21] M. M. Parast, S.G. Adams, E.C. Jones, S.S. Rao, & T.S. Raghu-Nathan, (2006). ‘Comparing quality management practices between the United States and Mexico’. The Quality Management Journal, 13(4), 36–49.
[22] I. Sila (2007), "Examining the effects of contextual factors on TQM and performance through the lens of organizational theory: an empirical study”, Journal of Operations Management, Vol. 25 No. 1, pp. 83-109
[23] J. Oakland (2008) ‘Total Quality Management—Text with Cases’, 2nd ed. (Butterworth- Heinemann).
[24] J. J. Dahlgaard, K. Kristensen, and G. K. Kanji (2007) ‘Fundamentals of Total Quality Management’ London, Taylor and Francis.
[25] M. R. Kumar (2011). ‘Comparison between DP and MBNQA: Convergence and divergence over time’, The TQM Magazine, 19(3), 245–258.
[26] M. Demirbag, E. Tatoglu, M. Tekinkus, & Zaim, S. (2006). ‘An analysis of the relationship between TQM implementation and organizational performance’: Evidence from Turkish SMEs. Journal of Manufacturing Technology Management, 17(6), 829-847.
[27] A. Louise, M. Graham (2012), ‘Quality improvement through clinical communities: eight lessons for practice’, Journal of Health Organization and Management, 26 (2)
[28] D. A. Ghobadian, and D. Gallear, (2005) ‘TQM implementation: an empirical examination and proposed generic model. Omega, 29, pp 343-359.
[29] J. C. Nunnally (1967). Psychometric theory. New York, NY: McGraw-Hill.
[30] Byrne, B.M. (1998), Structural Equation Modeling With LISREL, PRELIS, and SIMPLIS, Basic Concepts, Applications, and Programming, Lawrence Erlbaum Associates, Inc., Mahwah, New Jersey. Hokoma,
[31] De Jong, G. (1999), Causal Loops in Long-Term Supply Relationships: Theory and Evidence from the United States, Japan, and Europe, PhD thesis, SOM, University of Groningen, The Netherlands.
[32] R., Khan, K. and Hussain, K. (2010), "The present status of quality and manufacturing management techniques and philosophies within the Libyan iron and steel industry", The TQM Journal, 22 (2):209 – 221
[33] Hair, J.F. Jr, Anderson, R., Tatham, R. and Black, W. (1992), Multivariate Data Analysis, Prentice-Hall, Upper Saddle River, NJ.
[34] Kline, R. (1998), Principles and Practice of Structural Equation Modeling, Guilford Press, New York, NY.
[35] Oakland, J.S. (1993) Total Quality Management (Oxford, Butterworth-Heinemann).
[36] Harnett, D.L. and Murphy J.L. (1985), Statistical Analysis for Business and Economics. Third edition, Addison-Wesley Publishing Company, Reading, Massachusetts