Best predictors of quality performance in Australian service organisations

Abstract

This paper is based on a cross‐sectional study of 550 medium to large Australian service organisations to determine the effect of quality management practices on various dimensions of service quality outcomes (productivity, competitive advantage, customer relationships, and employee morale). These outcomes were used as dependent variables in a series of regression analyses in order to test several hypotheses. The results demonstrate the importance of including quality in the strategic planning process, customer involvement, empowerment of the workforce, and including quality indicators as part of key performance indicators. On the other hand, integrating quality systems and procedures into the organisation had a significantly negative relationship with increases in productivity. Based on the findings of this study, we conclude that the “soft” practices based on empowerment, at all levels of the organisation, strategic planning and customer/supplier involvement are the most significant predictors of high quality service organisations.