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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 10 Issue 8 pp. 1743-1754 , 2020

On the relationship between total quality management practices and firm performance in Vietnam: The mediating role of non-financial performance Pages 1743-1754 Right click to download the paper Download PDF

Authors: Thi My Dung Pham

DOI: 10.5267/j.msl.2020.1.005

Keywords: TQM practices, Financial performance, Non – financial performance, Mediator, Vietnamese enterprises

Abstract: Total quality management (TQM) is one of the popular management methods in many devel-oped countries, while it is an entirely new method for emerging economies. Although TQM practices contribute to the sustainable development of organizations, it is challenging to adopt this method efficiently. Six criteria factors are playing important roles in TQM implementation, which are: leadership, process management, quality information, employee training, customer focus, and supplier management. Each factor has different roles for firm performance represented by financial performance and non – financial performance. Identifying the relationship between TQM practices and the performance in Vietnamese enterprises, the research investigates the role of non – financial performance as a mediator variable in the relationship between TQM practices and financial performance. Through designing a questionnaire to conduct a survey, this paper studies the mediating role of non – financial performance on the relationship between TQM practices and financial performance utilizing SPSS 20 and AMOS 22 software with 211 Vietnamese enterprises by using SEM analysis. The estimation results propose that non – financial performance plays a vital role as a full mediator in the relation-ship between TQM practices and financial performance in the Vietnam context. In this research, there is no difference in the mediating effect level of non – financial performance between TQM companies & non – TQM companies as well as ISO adopters & non – ISO adopters. The study suggests that Vietnamese enterprises should have strict commitment to place TQM philosophy in actions at this early step of TQM implementation process to achieve considerable benefits in long-term development.

How to cite this paper
Pham, T. (2020). On the relationship between total quality management practices and firm performance in Vietnam: The mediating role of non-financial performance.Management Science Letters , 10(8), 1743-1754.

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Journal: Management Science Letters | Year: 2020 | Volume: 10 | Issue: 8 | Views: 4792 | Reviews: 0

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