Total quality management practices and organizational performance: the mediating roles of strategies for continuous improvement

Abstract

The relationship between total quality management (TQM) practices and organizational performance has been widely reported in literature without consensus on its nature. This study examined the nature of relationship as well as influence of TQM practices and strategies for continuous improvement on different measures of performance among large- and medium-sized construction companies in the Nigerian construction industry. Unlike earlier studies, the research gives specific thought to how the relationship between TQM practices and performance is mediated by strategies for continuous improvement. The study was conducted using sequential mixed methods. In-depth structured interviews were first conducted which formed the basis for cross-sectional survey that subsequently followed. One hundred and twenty-eight valid questionnaires from well-structured questionnaires that were self-administered to 155 mediumand large-sized construction companies were received. Based on the factor analysis and partial least square structural equation modelling that were carried out, the study revealed that TQM practices have significant effects on organizational performance. However, the mediating roles of strategies for continuous improvement are necessary to ensuring better organizational performance. Therefore, it is imperative for organizations that are craving for competitive advantage to place high premium on TQM practices while ensuring that the right strategies for continuous improvement are put in place.