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Total quality management (TQM) strategy and organisational characteristics: Evidence from a recent WTO member
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This paper presents a comparative study on the relationship between implementing
total quality management (TQM) and organisational characteristics (size, type of
industry, type of ownership, and degree of innovation) in a newly industrialised
country in South East Asia. Vietnam has become the 150th member of the World
Trade Organisation (WTO) since January 2007, and this is the first empirical study
to examine TQM practices in Vietnam. Analysis through Structural Equation
Modelling, t-test and MANOVA of survey data from 222 manufacturing and service
companies produced three major findings. First, this study supports previous
research findings that TQM can be considered as set of practices. Second, industries
in Vietnam have deployed certain TQM practices (customer focus and top
management commitment) at much higher levels than others, namely information
and analysis system, education and training, employee empowerment, and process
management. Finally, MANOVA shows a clear difference in TQM practices by
company size, industry type, and degree of innovation. Large companies had higher
implementation levels across almost all practices except for teamwork and open
organisation when compared to small- and medium-sized companies. TQM
practices were statistically more significant in manufacturing companies compared
to service companies, and firms having a higher degree of innovation also showed
higher levels of TQM practice implementation. In particular, the low deployment of
TQM practices in service industries, where TQM has been considered as orderqualifier,
highlights the challenges for Vietnam’s service industries that pursue TQM
to successfully compete in the global marketplace.
NONE
Management
English
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