Research in quality management has provided new insights and directions on how to incorporate quality principles into organizational, operational, and policy decisions. However, most research into ...quality management has focused on manufacturing firms, which differ from service organizations in their structural and organizational characteristics, thus limiting the value of the findings for service organizations and highlighting the need for further research to assess quality practices in service organizations. In addition, whether quality management practices can provide sustainable quality results for service organizations is overlooked in the literature, primarily due to the lack of availability of reliable and valid data. This had led to inconsistent research findings, which limits theory development and managerial relevance of quality management for service organizations. Building upon the contingency theory of quality management, we examine the determinants of quality results in service organizations and determine the magnitude of the impacts of quality excellence programs on customer satisfaction and operational results in service organizations on a more detailed level. We use repeated cross-sectional data of 16 years from the Baldrige Quality Award program. The results show that information, analysis, and knowledge management is a significant predictor of quality and operational results, and management of process quality and human resource (HR) management significantly influence customer focus and satisfaction, controlling for the firms' year. We also find that HR management has the strongest impact on customer focus and satisfaction in service organizations, followed by the management of process quality . In addition, the quality and operational improvements resulting from quality management implementation diminish over time in service enterprises. This article provides insights for service organizations and policymakers to enhance service quality and operational performance in service organizations.
This paper examines whether organizations improve their quality performance after applying for the Malcolm Baldrige National Quality Award (MBNQA). Using longitudinal data on organizations' actual ...scores on MBNQA applications between 1990 and 2006, we examine whether quality performance improved after organizations' initial application, the relationship between organizations' initial quality performance and subsequent improvement, and whether quality improvement differed based on applicants' industry sector. We examine these questions using the Heckman two-stage econometric modeling strategy. Building upon the organizational learning and absorptive capacity literatures, we find that organizations improve their quality performance after their first MBNQA application, initial quality performance displays an inverted U-shaped relationship with quality improvement such that organizations with low (but not the lowest) quality scores on their initial MBNQA application saw the largest subsequent quality gains, and organizations in the manufacturing sector experienced larger quality gains than organizations in other sectors. Analyses at the subcategory level reveal a pattern of findings that further corroborates our theory. We describe the implications of these findings with regard to operations management theory, managerial practice, and public policy.
QUALITY AWARDS: AN IMAGE OF BUSINESS EXCELLENCE Ilies Liviu; Salagean Horatiu Catalin; Gal Alina-Rodica ...
Analele Universităţii din Oradea. Ştiinţe economice,
07/2015, Volume:
25, Issue:
1
Journal Article
Peer reviewed
Open access
Across the world, increasingly more governmental organizations and industrial are doing everything possible to promote quality and to survive, the basic principle remains customer satisfaction and ...even more than that, it speaks of the principle of customer delight. In this sense, quality has become the source of sustained competitive advantage that provides organizations the supremacy of the global markets characterized by competition which becoming more and more intensified. Juran, one of the highest quality gurus say that “just as the twentieth century was the century of productivity, the twenty-first century will be the quality century” which is a very relevant and comprehensive statement of the economic reality of the past and a profound forecast for future business of the twenty-first century. In this regard, in order to achieve this competitive advantage, quality must be managed and this is accomplished through Total Quality Management (TQM). Quality awards models are instruments of total quality management through which quality can be assessed and improved, thus, knowing the quality awards models is critical for findings the new ways to improve the quality and performance of the organizations. The present paper aims to illustrate the best practices on quality improvement in this respect we intend to present the general framework of the quality awards for business excellence. In this sense we present the most important international quality awards, namely: "Malcolm Baldrige National Quality Award", "European Quality Award" and “Romanian Quality Award J. M. Juran". For this purpose we used as main sources of analyzing the structure and the operation mode of these three important quality awards, Juran's work (which is probably the most important work in the field of quality) and other relevant sources in total quality management which treats issues related to quality awards and also we used as sources of updated information the official websites of institutions and foundations who organizing the deployment of these awards.
In light of the growing demand for quality certifications, quality management practices have become crucial in the quest for profitability and market share. To date, the research into the firm ...performance of quality management is very limited. This paper aims to investigate the effects of quality management practices on the operational and financial performance. An event study methodology describing the year-to-year and cumulative effects of quality awards is developed. The data were collected from a sample of 148 Chinese manufacturing companies that won Chinese national and provincial quality awards. The results indicate that while quality award winners have advantages in terms of their profitability and operating efficiency, their sales growth is not improved as expected. In terms of innovation capability, award winners strongly underperform compared with their counterparts. This study also highlights that the positive impact on profitability may disappear after the certification and that the most significantly positive stimulus occurs in the certification year. This study provides evidence that quality certification cannot assure companies of competitive advantages. It also enlightens managers regarding the existence of obstacles from quality management systems to business performance.
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BFBNIB, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
Purpose
The purpose of this paper is to examine the interactive nature/mutual influence (MI) among quality initiatives (QI) and quality awards (QA) in Indian organizations subject to three ...contingencies, namely, QA won, QI adopted before winning a QA and QI adopted after winning a QA.
Design/methodology/approach
Administration of survey to collect the data were followed by validity and reliability analyses of the instrument. Hypotheses were tested by parametric/non-parametric one-sample and independent-samples tests.
Findings
The inferences on the effect of contingencies on the MI were inconclusive. Eight QI adopted before winning the QA, have influenced four such Indian QA. Three Indian QA have influenced four QI that were adopted after winning these QA. However, this MI is independent of specific QI adopted/QA won.
Research limitations/implications
The approach to test the hypotheses, small sample size and generic research questions have led to “preliminary” recommendations/inferences. Further research with larger data and advanced methods for analysis of interaction is suggested.
Practical implications
Based on clarity of MI, preliminary recommendations for adopting some QI before/after winning a QA were made. The way in which these recommendations can be used by experienced and fresh adopters of QI/QA and givers of QA has been outlined.
Originality/value
This study attempts to fill the gap of scarce holistic studies (that evaluate numerous QI and QA models) on the interactive nature of QI and the dissemination of QI into different periods of Continuous Improvement journey.
We examine the capital market response to the publication of annual reports shortlisted for corporate reporting awards. We find weaker capital market reactions to the publication of shortlisted ...annual reports compared with a matched sample of non-shortlisted annual reports, consistent with shortlisted reports containing similar or less price sensitive information relative to non-shortlisted reports. Further analysis shows that firms publishing shortlisted reports are more likely to release information to investors in a timelier manner throughout the financial year. We complement our archival empirical analysis with interview evidence from FTSE350 executives and consultants to shed light on the motives for investing in high-quality annual reports. Collectively, our results support the view that high quality annual reporting reflects superior firm-level investor communication processes and that the broader corporate reporting cycle shapes the information role of firm reporting.
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BFBNIB, NUK, PILJ, SAZU, UL, UM, UPUK
Quality management practices have become increasingly important as firms seek to obtain quality certifications to dominate markets. To date, adequate research evaluating the effects of quality ...management is lacking. In this work, we used Chinese quality awards to evaluate a firm’s quality level. A PSM-DiD (propensity score matching and difference-in-difference) model describing the relationship between quality award effects and financial benefits in terms of return on assets was developed. We further used a hierarchical regression to examine the influence of operational performance on financial benefits. The results show that quality awards cannot assure their winners a higher return on asset. Indicators of operating performance, such as less lead time and higher inventory turnover, can significantly enhance firms’ profitability. The moderating effects of operational performance suggest that firms may focus on how to translate quality management practices into business improvement. This study also contributes to the operation management literature by describing how firms need outstanding financial performance for sustainable development and continuous improvement.
Purpose
– In recent decades, a framework for management performance has proven to be an important management practice for achieving organisational performance excellence. In this sense, the purpose ...of this paper is to analyse how a specific company manages to achieve performance excellence through the attainment of the Brazilian National Quality Award.
Design/methodology/approach
– The study adopts a case-based approach using a single unit of analysis that might be considered a revealing case. The company studied is one of the largest companies in the information and financial analysis sector in Latin America and is part of a major worldwide corporation. Semi-structured interviews with senior managers and document analysis were used for data collection, with content and inductive analysis performed a posteriori.
Findings
– The main results outline the approach adopted by the company for each performance excellence award criterion and highlight some of the relevant organisational practices, especially those related to the nature of the company’s businesses. The findings show that the top management has been an essential driving force in transforming the managers at all levels into agents of improvement at the studied company. Additional key points are the deployment of the company’s “shared values” throughout the company and the implementation of a medium- and long-term comprehensive strategic plan focused on the award criteria. The company’s strategic system has been a driving force of its success.
Research limitations/implications
– For a more extensive empirical validation, further replications using other samples are needed to ensure the external validity of these findings.
Originality/value
– This paper is one of the few published studies discussing business excellence in emerging economies, which is not observed very often in developing markets. In addition, the paper focuses on promoting a culture of quality, a less common phenomenon in the economies of developing countries than in those of developed nations. Finally, this paper may be useful for practitioners and academics interested in the subject of quality and performance excellence.
PurposeThe purpose of this paper is to propose a national framework for promoting business excellence (NFPBE) using a quality management assessment framework (QMAF) with information knowledge ...communication (IKC) as an enabler.Design/methodology/approachThe NFPBE using the plan–do–check–act (PDCA) cycle is developed, re-enforcing key quality management aspects/areas including national quality awards, QMAF summary and national innovation programmes using a meta-analysis.FindingsThe operationalising of the NFPBE is enabled and supported by an auditing tool to assess the degree of mentoring provided by universities/research institutions/consulting firms to participating firms whose progress will be assessed by the QMAF. It was emphasised that the success of the framework requires the buy-in of national governments to support the programme through stimulus incentives such as government assistance with the costs of research and development, and cooperative research ventures between universities and companies.Research limitations/implicationsThe framework is conceptualised into a process flowchart, which is a blueprint to advancing business excellence in organisations at a national scale. The study is limited to only the conceptualisation of the framework. Therefore, an extended study of the framework implementation/application is required for revealing implementation guidelines.Practical implicationsThe national framework has a propensity to enhancing the business excellence of organisations at a national level. Therefore, quality managers and policy makers could use the framework to understand the quality management shortfalls and consider strategies to achieving business excellence.Originality/valueThis research study proposed a blueprint to advancing quality excellence in organisations at a national level, guided by several quality frameworks.
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