The impact of TQM practices on key performance indicators: Empirical evidence from automotive dealerships

Research output: Contribution to journalArticle

Abstract

The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The relationship between quality and performance management is still adversarial, wherein the nonfi nancial aspect of performance measurements is signifi cantly ignored. This research is conducted in the context of Malaysian automotive dealerships service centres in which the primary objectives are to identify the total quality management (TQM) practices and the fi nancial and non-fi nancial key performance indicators (KPIs) adopted in this sector, and to examine the impact of TQM practices on AS KPIs. Therefore, a conceptual model proposes that the high implementation of soft and hard dimensions of TQM has a positive impact on KPIs. A quantitative survey methodology was employed and a structured questionnaires was elaborated based on validated theoretical concepts, while the obtained data were analysed with the help of structural equation modelling (SEM) partial least squares technique (PLS). The results refer to equivalent applicability of TQM practices across manufacturing and service sectors, while the infl uence of TQM practices on the multi-oriented KPIs is empirically supported. The article contributes to the literature in service marketing and quality in which it streamlines two paradigms: TQM and performance management as it can form a guideline for scholars to deepen their relevant comprehension. In practice, the fi ndings contribute to service managers by emphasising the importance of TQM practices for the improvement of service performance in both fi nancial and non-fi nancial aspects.

Original languageEnglish
Pages (from-to)115-129
Number of pages15
JournalE a M: Ekonomie a Management
Volume22
Issue number1
DOIs
Publication statusPublished - 1 Jan 2019

Fingerprint

Total quality management
Empirical evidence
Quality management practices
Key performance indicators
Performance management
Paradigm
Structural equation modeling
Service sector
Survey methodology
Service quality
Revenue
Relationship quality
Managers
Manufacturing sector
Quality management
Partial least squares
Services marketing
Questionnaire
Performance measurement
Service performance

Keywords

  • After-sales service
  • Automotive
  • Key performance indicators
  • Partial least square PLS
  • Total quality management

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)
  • Strategy and Management

Cite this

@article{cae820c496d240cf9e5e5d970e502c9f,
title = "The impact of TQM practices on key performance indicators: Empirical evidence from automotive dealerships",
abstract = "The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The relationship between quality and performance management is still adversarial, wherein the nonfi nancial aspect of performance measurements is signifi cantly ignored. This research is conducted in the context of Malaysian automotive dealerships service centres in which the primary objectives are to identify the total quality management (TQM) practices and the fi nancial and non-fi nancial key performance indicators (KPIs) adopted in this sector, and to examine the impact of TQM practices on AS KPIs. Therefore, a conceptual model proposes that the high implementation of soft and hard dimensions of TQM has a positive impact on KPIs. A quantitative survey methodology was employed and a structured questionnaires was elaborated based on validated theoretical concepts, while the obtained data were analysed with the help of structural equation modelling (SEM) partial least squares technique (PLS). The results refer to equivalent applicability of TQM practices across manufacturing and service sectors, while the infl uence of TQM practices on the multi-oriented KPIs is empirically supported. The article contributes to the literature in service marketing and quality in which it streamlines two paradigms: TQM and performance management as it can form a guideline for scholars to deepen their relevant comprehension. In practice, the fi ndings contribute to service managers by emphasising the importance of TQM practices for the improvement of service performance in both fi nancial and non-fi nancial aspects.",
keywords = "After-sales service, Automotive, Key performance indicators, Partial least square PLS, Total quality management",
author = "Omar Sabbagh and {Ab Rahman}, {Mohd Nizam} and Ismail, {Wan Rosmanira} and {Wan Hussain}, {Wan Mohd Hirwani}",
year = "2019",
month = "1",
day = "1",
doi = "10.15240/tul/001/2019-1-008",
language = "English",
volume = "22",
pages = "115--129",
journal = "E a M: Ekonomie a Management",
issn = "1212-3609",
publisher = "Technical University of Liberec",
number = "1",

}

TY - JOUR

T1 - The impact of TQM practices on key performance indicators

T2 - Empirical evidence from automotive dealerships

AU - Sabbagh, Omar

AU - Ab Rahman, Mohd Nizam

AU - Ismail, Wan Rosmanira

AU - Wan Hussain, Wan Mohd Hirwani

PY - 2019/1/1

Y1 - 2019/1/1

N2 - The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The relationship between quality and performance management is still adversarial, wherein the nonfi nancial aspect of performance measurements is signifi cantly ignored. This research is conducted in the context of Malaysian automotive dealerships service centres in which the primary objectives are to identify the total quality management (TQM) practices and the fi nancial and non-fi nancial key performance indicators (KPIs) adopted in this sector, and to examine the impact of TQM practices on AS KPIs. Therefore, a conceptual model proposes that the high implementation of soft and hard dimensions of TQM has a positive impact on KPIs. A quantitative survey methodology was employed and a structured questionnaires was elaborated based on validated theoretical concepts, while the obtained data were analysed with the help of structural equation modelling (SEM) partial least squares technique (PLS). The results refer to equivalent applicability of TQM practices across manufacturing and service sectors, while the infl uence of TQM practices on the multi-oriented KPIs is empirically supported. The article contributes to the literature in service marketing and quality in which it streamlines two paradigms: TQM and performance management as it can form a guideline for scholars to deepen their relevant comprehension. In practice, the fi ndings contribute to service managers by emphasising the importance of TQM practices for the improvement of service performance in both fi nancial and non-fi nancial aspects.

AB - The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The relationship between quality and performance management is still adversarial, wherein the nonfi nancial aspect of performance measurements is signifi cantly ignored. This research is conducted in the context of Malaysian automotive dealerships service centres in which the primary objectives are to identify the total quality management (TQM) practices and the fi nancial and non-fi nancial key performance indicators (KPIs) adopted in this sector, and to examine the impact of TQM practices on AS KPIs. Therefore, a conceptual model proposes that the high implementation of soft and hard dimensions of TQM has a positive impact on KPIs. A quantitative survey methodology was employed and a structured questionnaires was elaborated based on validated theoretical concepts, while the obtained data were analysed with the help of structural equation modelling (SEM) partial least squares technique (PLS). The results refer to equivalent applicability of TQM practices across manufacturing and service sectors, while the infl uence of TQM practices on the multi-oriented KPIs is empirically supported. The article contributes to the literature in service marketing and quality in which it streamlines two paradigms: TQM and performance management as it can form a guideline for scholars to deepen their relevant comprehension. In practice, the fi ndings contribute to service managers by emphasising the importance of TQM practices for the improvement of service performance in both fi nancial and non-fi nancial aspects.

KW - After-sales service

KW - Automotive

KW - Key performance indicators

KW - Partial least square PLS

KW - Total quality management

UR - http://www.scopus.com/inward/record.url?scp=85069182407&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85069182407&partnerID=8YFLogxK

U2 - 10.15240/tul/001/2019-1-008

DO - 10.15240/tul/001/2019-1-008

M3 - Article

AN - SCOPUS:85069182407

VL - 22

SP - 115

EP - 129

JO - E a M: Ekonomie a Management

JF - E a M: Ekonomie a Management

SN - 1212-3609

IS - 1

ER -