Identifying the critical determinants of TQM and their impact on company performance

Abstract

Purpose The purpose of this paper is to enrich the existing literature by determining the underlying structure (latent factors) of total quality management (TQM) practices and their impact on company performance outcomes in the Greek hotel industry. Design/methodology/approach The research questions were examined using a sample of 153 top-and middle-level hotel-quality managers. Exploratory factor analyses, coupled with multiple linear regression analyses, were used to examine the extent to which elements of TQM influence hotel performance. Findings The TQM factors revealed by the present empirical research in the hotel industry are the quality practices of top management, strategic quality planning, employee quality management, customer focus and employee knowledge and education. On the other hand, the performance dimensions revealed through the present study are summarized as: financial performance, customer focused performance and service quality performance. The results also confirmed that most of the TQM elements are antecedents of hotel business performance. Practical implications Hotel managers/owners using reliable and valid frameworks comprising TQM practices and performance outcomes may better address their efforts by choosing whether to invest in company refurbishing or better train their personnel to maximize hotel performance. Originality/value The purpose of this study is to enrich the existing literature by identifying and confirming the enablers and outcomes of TQM specifically within the hospitality industry. Moreover, the relationship between the implementation of TQM practices and superior company performance is also examined due to the past contradictory results regarding this matter.