Abstract

The purpose of this study is to examine the relationship between Total Quality Management (TQM) practices, quality capabilities, competitiveness and firm performance. In this study, TQM has been conceptualized as soft and hard practices. An empirical analysis based upon an extensive validation process was applied to refine the construct scales, respectively. The sample consists of 423 valid responses for applying Structural Equation Modeling (SEM). Results derived from this study show that soft TQM practices have a direct, positive and significant relationship between quality capabilities, competitive strategies and Organizational performance. In addition, an indirect, positive and significant relationship on organizational performance through quality capabilities and competitive strategies was observed. The findings of this research show that hypotheses H3b, H4b and H6b do not support, the rest are in line with the model inference. Particularly, from the results indicate that soft TQM are the most important resource, which has strong effects on organizational performance. Results derived from this study might help managers to implement TQM practices in order to effectively allocate resources and improve financial performance. Thus, managers should consider that improvement in soft TQM would support the successful implementation of quality capabilities, competitive advantage and organizational performance. Much efforts relating to social aspects in TQM activities are particularly key issues to improve performance.

Keywords:

Competitiveness, organizational performance, quality activities , quality capabilities,

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