The Moderating Effect of Government Quality Award on the Relationship between Quality Management Practice and Firm Performance:Based on the Neo-institutional Theory

Abstract

Abstract:

Many researches on quality management practice and firm performance reflects a contingent perspective of the firm, dealing primarily with central issues of the task environment. The neo-institutional perspective on the influences of the institutional environment regarding the effects of such factors is conspicuously absent in the empirical quality literature. This study aims to address this research gap by investigating the institutional factor of Government Quality Award on quality management practice and firm performance based on the neo-institutional theory. Firstly, a model of quality management practice and firm performance is proposed and then the data from a survey of 349 firms that implement the performance excellence model is used to test the relationship. Secondly, the moderating effect of Government Quality Award is examined by using multi-group structural equation model, including 89 award-winning firms and 260 non-winning firms. The empirical results demonstrate that the effects of each factor of quality management practices on firm performance are strong, the factor of leadership appears significant. And the moderating effect of Government Quality Award on the relationship between quality management practice and firm performance also exists. A major implication of this research is that winning Government Quality Award will position a firm in a better legitimate status, which is helpful to its quality management practice. In addition, the research is a constructive attempt to enrich the theory of quality management.

Key words: Government Quality Award, quality management practice, firm performance, neo-institutional theory

Zeng Zhen, Wang Zongjun. The Moderating Effect of Government Quality Award on the Relationship between Quality Management Practice and Firm Performance:Based on the Neo-institutional Theory[J]. , 2017, 29(10): 180-197.

References

[1] O'Neill P., Sohal A., Teng C. W. Quality Management Approaches and Their Impact on Firms' Financial Performance-An Australian Study[J].International Journal of Production Economics, 2016,171:381-393
[2] Ebrahimi M., Sadeghi M. Quality Management and Performance:An Annotated Review[J]. International Journal of Production Research, 2013,51(18):5625-5643
[3] Corredor P., Goñi S. TQM and Performance:Is The Relationship So Obvious?[J]. Journal of Business Research, 2011,64(8):830-838
[4] Dow D., Samson D., Ford S. Exploding The Myth:Do All Quality Management Practices Contribute to Superior Quality Performance?[J]. Production and Operations Management, 1999,8(1):1-27
[5] Samson D., Terziovski M. The Relationship Between Total Quality Management Practices and Operational Performance[J]. Journal of Operations Management, 1999,17(4):393-409
[6] Powell T. C. Total Quality Management as Competitive Advantage:A Review and Empirical Study[J]. Strategic Management Journal, 1995,16(1):15-37
[7] Phan A. C., Abdallah A. B., Matsui Y. Quality Management Practices and Competitive Performance:Empirical Evidence from Japanese Manufacturing Companies[J]. International Journal of Production Economics, 2011,133(2):518-529
[8] Prajogo D. I., Sohal A. S. The Relationship Between TQM Practices, Quality Performance, and Innovation Performance:An Empirical Examination[J]. International Journal of Quality & Reliability Management, 2003,20(8):901-918
[9] Kaynak H. The Relationship Between Total Quality Management Practices and Their Effects on Firm Performance[J]. Journal of Operations Management, 2003,21(4):405-435
[10] Ho D. C. K., Duffy V. G., Shih H. M. Total Quality Management:An Empirical Test for Mediation Effect[J]. International Journal of Production Research, 2001,39(3):529-548
[11] Albers Mohrman S., Tenkasi R. V., Lawler E. E., et al. Total Quality Management:Practice and Outcomes in the Largest Us Firms[J]. Employee Relations, 1995,17(3):26-41
[12] Shin D., Kalinowski J. G., El-Enein G. A. Critical Implementation Issues in Total Quality Management[J]. Sam Advanced Management Journal, 1998,63(1):10-14
[13] Benson P. G., Saraph J. V., Schroeder R. G. The Effects of Organizational Context on Quality Management:An Empirical Investigation[J]. Management Science, 1991,37(9):1107-1124
[14] Sila I. Examining the Effects of Contextual Factors on Tqm and Performance Through the Lens of Organizational Theories:An Empirical Study[J]. Journal of Operations Management, 2007,25(1):83-109
[15] Zhang D., Linderman K., Schroeder R. G. The Moderating Role of Contextual Factors on Quality Management Practices[J]. Journal of Operations Management, 2012,30(1):12-23
[16] Das A., Handfield R. B., Calantone R. J., Et Al. A Contingent View of Quality Management-The Impact of International Competition on Quality[J]. Decision Sciences, 2000,31(3):649-690
[17] Jayaram J., Ahire S. L., Dreyfus P. Contingency Relationships of Firm Size, TQM Duration, Unionization, and Industry Context on Tqm Implementation-A Focus on Total Effects[J]. Journal of Operations Management, 2010,28(4):345-356
[18] Douglas T. J., Judge W. Q. Total Quality Management Implementation and Competitive Advantage:The Role of Structural Control and Exploration[J]. Academy of Management Journal, 2001,44(1):158-169
[19] Calvo-Mora A., Picón-Berjoyo A., Ruiz-Moreno C., et al. Contextual and Mediation Analysis Between TQM Critical Factors and Organisational Results in the Efqm Excellence Model Framework[J]. International Journal of Production Research, 2015,53(7):2186-2201
[20] Meyer J. W., Rowan B. Institutionalized Organizations:Formal Structure as Myth and Ceremony[J]. American Journal of Sociology, 1977,83(2):340-363
[21] Rowan B. Orgzaniztional Sructure and the Institutional Environment:The Case of Public Schools[J]. Administrative Science Quarterly, 1982,27(2):259-279
[22] Dimaggio P., Powell W. W. The Iron Cage Revisited:Institutional Isomorphism and Collective Rationality in Organizational Fields[J]. American Sociological Review, 1983,48(2):147-160
[23] Suchman M. C. Managing Legitimacy:Strategic and Institutional Approaches[J]. Academy of Management Review, 1995,20(3):571-610
[24] Scott W. R. Institutions and Organizations. Foundations for Organizational Science[J]. London:A Sage Publication Series, 1995
[25] Westphal J. D., Gulati R., Shortell S. M. Customization or Conformity? An Institutional and Network Perspective on the Content and Consequences of Tqm Adoption[J]. Administrative Science Quarterly, 1997,42(2):366-394
[26] Yeung A. C. L., Cheng T. C. E., Kee-Hung L. An Operational and Institutional Perspective on Total Quality Management[J]. Production and Operations Management, 2006,15(1):156-170
[27] Mellat-Parast M. An Institutional Theory of Quality Outcomes in Strategic Supply Chain Partnership[J]. International Journal of Quality & Reliability Management, 2015,32(4):346-360
[28] Blanco-González A., Cruz-Suárez A., Díez-Martín F. The EFQM Model as an Instrument to Legitimise Organisations[M]//Peris-Ortiz M., Álvarez-García J., Rueda-Armengot C. Achieving Competitive Advantage Through Quality Management. Switzerland:Springer International Publishing, 2015
[29] 姜鹏,苏秦,党继祥,等. 不同类型的质量管理实践与企业绩效影响机制的实证研究[J]. 中国软科学, 2009,1(7):134-143
[30] 姜鹏,苏秦,宋永涛,等. 不同情景下质量管理实践与企业绩效模型的实证研究[J]. 管理评论, 2010,22(11):111-119
[31] 奉小斌,陈丽琼. 质量管理实践、组织学习与企业绩效关系研究——基于浙江制造企业的实证分析[J]. 管理评论, 2016,28(1):31-41
[32] Prajogo D. I., Hong S. W. The Effect of TQM on Performance in R&D Environments:A Perspective from South Korean Firms[J]. Technovation, 2008,28(12):855-863
[33] Martínez-Costa M., Martínez-Lorente A. R. Does Quality Management Foster or Hinder Innovation? An Empirical Study of Spanish Companies[J]. Total Quality Management, 2008,19(3):209-221
[34] Fuentes M. M. F., Montes F. J. L., Fernández L. M. M. Total Quality Management, Strategic Orientation and Organizational Performance:The Case of Spanish Companies[J]. Total Quality Management & Business Excellence, 2006,17(3):303-323
[35] Wilson D. D., Collier D. A. An Empirical Investigation of the Malcolm Baldrige National Quality Award Causal Model[J]. Decision Sciences, 2000,31(2):361-383
[36] Tarí J. J., Molina J. F., Castejon J. L. The Relationship Between Quality Management Practices and Their Effects on Quality Outcomes[J]. European Journal of Operational Research, 2007,183(2):483-501
[37] Prajogo D. I., Mcdermott C. M. The Relationship Between Total Quality Management Practices and Organizational Culture[J]. International Journal of Operations & Production Management, 2005,25(11):1101-1122
[38] Calvo-Mora A., Picón A., Ruiz C., et al. The Relationships Between Soft-Hard Tqm Factors and Key Business Results[J]. International Journal of Operations & Production Management, 2013,34(1):115-143
[39] Rahman S., Bullock P. Soft Tqm, Hard Tqm, and Organisational Performance Relationships:An Empirical Investigation[J]. Omega, 2005,33(1):73-83
[40] Feng J., Prajogo D. I., Chuan Tan K., et al. The Impact of Tqm Practices on Performance:A Comparative Study Between Australian and Singaporean Organizations[J]. European Journal of Innovation Management, 2006,9(3):269-278
[41] Sadikoglu E., Zehir C. Investigating The Effects of Innovation and Employee Performance on the Relationship Between Total Quality Management Practices and Firm Performance:An Empirical Study of Turkish Firms[J]. International Journal of Production Economics, 2010,127(1):13-26
[42] Kim D. Y., Kumar V., Kumar U. Relationship Between Quality Management Practices and Innovation[J]. Journal of Operations Management, 2012,30(4):295-315
[43] Achieving Competitive Advantage Through Quality Management[M]. Cham:Springer, 2015
[44] Steeples M. M. The Corporate Guide to the Malcolm Baldrige National Quality Award:Proven Strategies for Building Quality into Your Organization[J]. Journal for Healthcare Quality, 1995,17(5):33
[45] Kull T. J., Narasimhan R. Quality Management and Cooperative Values:Investigation of Multilevel Influences on Workgroup Performance[J]. Decision Sciences, 2010,41(1):81-113
[46] Wisner J. D., Eakins S. G. A. Performance Assessment of the Us Baldrige Quality Award Winners[J]. International Journal of Quality & Reliability Management, 1994,11(2):8-25
[47] Lubke G. H., Muthén B. O. Applying Multigroup Confirmatory Factor Models for Continuous Outcomes to Likert Scale Data Complicates Meaningful Group Comparisons[J]. Structural Equation Modeling, 2004,11(4):514-534
[48] Peng X., Prybutok V. Relative Effectiveness of the Malcolm Baldrige National Quality Award Categories[J]. International Journal of Production Research, 2015,53(2):629-647
[49] 温忠麟,侯杰泰,张雷. 调节效应与中介效应的比较和应用[J]. 心理学报, 2005,37(2):268-274
[50] Wang H., Law K. S., Hackett R. D., et al. Leader-Member Exchange as a Mediator of the Relationship Between Transformational Leadership and Followers' Performance and Organizational Citizenship Behavior[J]. Academy of Management Journal, 2005,48(3):420-432
[51] Fornell C., Larcker D. F. Structural Equation Models with Unobservable Variables and Measurement Error:Algebra and Statistics[J]. Journal of Marketing Research, 1981,18(3):382-388
[52] Netemeyer R. G., Johnston M. W., Burton S. Analysis of Role Conflict and Role Ambiguity in a Structural Equations Framework[J]. Journal of Applied Psychology, 1990,75(2):148-157
[53] Ding L., Velicer W. F., Harlow L. L. Effects of Estimation Methods, Number of Indicators Per Factor, and Improper Solutions on Structural Equation Modeling Fit Indices[J]. Structural Equation Modeling:A Multidisciplinary Journal, 1995,2(2):119-143
[54] Ghiselli E. E., Campbell J. P., Zedeck S. Measurement Theory for the Behavioral Sciences[M]. San Francisco:W. H. Freeman and Company, 1981
[55] 马钦海,赵佳,张跃先,等. C2C环境下顾客初始信任的影响机制研究:网上购物经验的调节作用[J]. 管理评论, 2012,24(7):70-81
[56] 吴明隆. 结构方程模型:Amos的操作与应用[M]. 重庆:重庆大学出版社, 2010
[57] Little T. D. Mean and Covariance Structures (Macs) Analyses of Cross-Cultural Data:Practical and Theoretical Issues[J]. Multivariate Behavioral Research, 1997,32(1):53-76
[58] Fotopoulos C. B., Psomas E. L. The Impact of-Soft‖ And-Hard‖ Tqm Elements on Quality Management Results[J]. International Journal of Quality & Reliability Management, 2009,26(2):150-163
[59] Fuentes M. M. F., Montes F. J. L., Fernández L. M. M. Total Quality Management, Strategic Orientation and Organizational Performance:The Case of Spanish Companies[J]. Total Quality Management & Business Excellence, 2006,17(3):303-323
[60] 史丽萍,刘强,贾亚男,等. 网络关系强度、全面质量管理实践与组织学习关系研究——拓展触发组织学习的潜在路径[J]. 管理评论, 2014,26(5):48-60
[61] 李茂能. 结构方程模式软件AMOS之简介及其在测验编制上之应用:Graphics&Basic=An Introduction to Amos And Its Uses in Scale Development:Graphics&Basic[M]. 台北:心理出版社股份有限公司, 2006