A SECONDARY DATA ANALYSIS OF CRITICAL SUCCESS FACTORS FOR TQM IN SERVICE SECTOR

1. INTRODUCTION

One of the key management strategies for gaining a long-term competitive advantage, enhancing overall business performance, and attaining quality status internationally is total quality management. There are several critical success factors that implement TQM. Since last two decades, there has been a significant increase in the knowledge of Total Quality Management (TQM) and it has become a recognized field of study for engineers, quality practitioners, consultants, and academics have all contributed their views and ideas towards the advancement of TQM Talib et al. (2011). CSFs of TQM in industries like manufacturing and service sector have been the subject of extensive research and development. Numerous studies demonstrate the robust and favourable association between TQM's Critical Success Factors and manufacturing and service firms' performance. Through numerous research studies it was discovered that many CSFs are essential to industries like manufacturing and service sectors for successful adoption of TQM. Using a very large number of TQM CSFs found in the literature, this study attempts to identify a critical few CSFs that will be useful to banking industry practitioners and researchers.

2. TQM CONCEPT

Over several decades, the idea of TQM has dominated the field of management. It is extremely old, having originated in 1950s and was originally presented in USA in the year 1980s Prajogo & Sohal (2003). Since last two decades, quality control has replaced basic inspection tasks. Quality assurance has also been established and improved, and many businesses are currently moving toward total quality management (TQM) through a process of continuous and organizational improvement. Even while TQM has received constant attention in developed nations like the United States, Japan, the United Kingdom, and other European nations, experts have only just begun to closely examine quality procedures in developing nations in the last ten years Hassan et al. (2012).

It is challenging to define total quality management because it is a subjective process. It is imperative to acknowledge that Total Quality Management (TQM) is a multifaceted concept that relies on the perspectives of diverse individuals about products and services. The definition of TQM varies widely. According to Flynn & Schoeder (1994) Total Quality Management (TQM) as “A management philosophy that focuses on employee involvement, leadership, education and training, customer focus, supplier quality management, vision and plan statement, evolution, process control and improvement, product design, and quality system improvement.” According to Sink, the organization's leadership must convert operational definitions into strategies, which then crystallize into actions and are convincingly and clearly conveyed to all members of the public in order for TQM to succeed. TQM is defined as an organization's positive attempt to improve the infrastructure, structural, behavioural, attitudinal, and methodological aspects of offering to the end customer, with a focus on consistency, quality enhancement, and competitive improvements, all with an objective of satisfying or appealing the end user Nofal et al. (2005).

Two fundamental components of TQM are quality control & quality management. While quality management is a method of planning, organizing, and directing which will enable and transform the skills and abilities of every employee for continual enhancement for anyone and everything in an organization to achieve excellence, total quality control is an organization's long-term success strategy. As a result, TQM in an organization unites everyone in order to assure and enhance the quality of the product process, the workplace, and the culture of the workplace. TQM offers numerous advantages, such as increased market share that boosts profitability and competitiveness, cheaper costs, higher worker job satisfaction, and better product quality. These advantages eventually lead to a significant shift in the organization's performance standards and guarantee ongoing expansion in a market that is highly competitive.

3. LITERATURE REVIEW

According to the literature analysis of earlier empirical investigations on the aforesaid research problem, academicians and researcher scholars have classified TQM CSFs differently, even though they are complementary to each other Prajogo & Sohal (2003). Also the prior studies on total quality management (TQM) indicated that a successful TQM implementation will enhance customer satisfaction, staff engagement, communication, productivity, and competitive advantage Antony et al. (2002). In recent times, numerous research studies conducted worldwide have highlighted critical success determinants for service industries.

Data from 162 managers of 20 manufacturing and service industries gathered in the USA region were utilized in one of the first empirical research in the QM field by Saraph & Benson (1989) to discover the CSFs of TQM. Eight elements were highlighted by them, including employee interactions, supplier quality management, training, product design, process management, top management leadership, and the responsibility of the quality department. In the meantime, Black & Porter (1996) created an empirical framework for total quality management (TQM) based on the opinions and experiences of many total quality practitioners as well as the standards for Malcolm Baldrige Quality Award (MBQA). Ten CSFs- quality improvement measurement systems, communication, corporate quality culture, people/customer management, strategic quality management, structure, supplier relationships, external interface management, operational quality planning, and customer satisfaction; were presented in their study, which focused on both manufacturing and service industries.

Saraph & Benson (1989) attempted the first survey to discover TQM practices. Similarly, a number of other significant investigations were conducted to determine the TQM CSFs, which are compiled in Table 1 by researchers Flynn & Schoeder (1994), Black & Porter (1996), Kunst & Lemmink (2000) and others.

Table 1

Table 1 Critical Success Factors of TQM Recognized by Different Researchers

S. No.

AUTHORS

TQM PRACTICES

Chaturvedi & Solanki (2020)

√

Husseini et al. (2019)

√

Nazar (2018)

√

Pattanayak & Maddulety (2018)

√

Srivastava & Gaur (2016)

√

Ali Husseini & Soo-Fen (2019)

√

Darshana et al. (2015)

√

Al-Ettayyem & Zubi (2015)

√

Parikar (2015)

√

Badri & Davis (2014)

√

Massoud et al. (2013)

√

Karla & Pant (2013)

√

Awolusi (2013)

√

Tandon & Thakur (2012)

√

Talib (2011)

√

Farhad (2011)

√

Purnendu (2011)

√

Singla (2011)

√

Sit (2011)

√

Hoang et al. (2010)

√

Keng-Boon et al. (2010)

√

Anh & Matsui (2006)

√

Karuppusami & Gandhinathan (2006)

√

Irani (2004)

√

Kaynak (2003)

√

Bayazit (2003)

√

Antony (2002)

√

Sun (2001)

√

Kunst & Lemmink, (2000)

√

Black & Porter (1996)

√

Powell (1995)

√

Flynn & Schoeder (1994)

√

Saraph & Benson (1989)

√

Note: (1) Top management/ Leadership (Top-management commitment, senior executive involvement, management leadership, management support, executive commitment) (2) Customer focus/orientation (customer satisfaction, customer service, customer relationship) (3) Education & Training (learning, learning and education, quality training, training and learning, employee training) (4) Employee Empowerment/Involvement (internal customer involvement, employee fulfilment, employee interaction, employee participation) (5) Process management (process flow management, process design process quality) (6) Strategic management (strategic quality planning, develop a vision) (7) Human resource management (workforce development, employee management, workforce management, employee development, people & customer management) (8) Teamwork (teamwork structure, culture of teamwork, team building technique, team working) (9) Service Design (product design, serviceability of product, product & service innovation) (10) Continuous improvement (improvement program, new technology, innovation strategies, quality continues improvement) (11) Information, Evaluation & Analysis (12) Communication (information & communication, cross functional communication) (13) Quality information and performance measurement (quality data & reporting, internal & external quality measurement, quality information systems, information & data management) (14) Quality culture (work culture, corporate quality culture, service culture, improvement culture) (15) Benchmarking (competitive benchmarking, use of benchmarking, benchmarking on quality and services) (16) Supplier quality management (supplier partnership, supplier cooperation, supplier involvement, vendor relations) (17) Quality systems (quality policies, quality management, use of quality tools, quality tools & techniques, ISO 9000 standards, quality standards) (18) Role of quality department (quality department, approval of quality standards, quality specification) (19) Reward & Recognition (20) Statistical process control (Process improvement, statistical process usage, process orientation) (21) Quality assurance (assurance, quality feedback, new product quality, quality reliability) (22) Social ability

4. OBJECTIVE OF THE STUDY

Based on the current literature review, this study aims to discover TQM CSFs basically related to service industry. The Critical Success Factors (CSFs) were sorted using the Pareto analysis tool in descending order based on how frequently they occur. Additionally, this study provides a list of "vital few" TQM CSFs for the benefit of service industries practitioners and researchers.

5. RESEARCH METHODOLOGY

For the present study in-depth (comprehensive) literature review methodology was used. The aforementioned goal is achieved by doing a thorough literature review of published research papers on the aforesaid research problem, focussing on statistically tested CSFs and practices. In order to find CSFs using Pareto analysis, a total of 33 research papers (published between the years 1989 and 2020) were chosen from the Google scholar and other search engines. The paper examined for the present study encompasses research on TQM performance studies as well as CSFs. Critical success factors (CSFs) of Total Quality Management (TQM) were identified in the manufacturing sector by Karuppusami & Gandhinathan (2006), and in the service industry by Talib et al. (2011) using the same statistical tools & technique & so on.

6. ANALYSIS OF THE STUDY

Pareto analysis is a quite straightforward process for choosing a few numbers of activities that have an extensive overall impact while making decisions. The “80/20 Rule” or Pareto Principle is used in Pareto Analysis. According to this rule, “the vital few” factors account for a significant portion (80%) of the cumulative percentage of occurrences, while the “useful many” only account for the remaining 20%. Pareto charts, which show the results of a Pareto analysis as a bar graph arranged in descending order, are commonly used to help predict which factors are most important. They do this by overlaying a line graph that cuts an 80 percent cumulative percentage, which serves as a clear indicator and helps identify which factors have a minimal number of benefits and vice versa Talib et al. (2011).

7. ANALYSIS OF CSFs OF TQM

For the Pareto analysis, only those CSFs of TQM that are recommended as useful TQM implementation factors in service sector especially in banking sector have been selected. The Pareto analysis of CSFs is derived from 33 carefully chosen research papers which is displayed in Table 2. Additionally, Table 2 is used to produce the Pareto chart of TQM CSFs shown in Figure 1.

8. LIST OF CSFS AS PER PARETO ANALYSIS

Table 2

Table 2
S. No.	CSFs	Symbol	Frequency of occurrence	Cumulative Frequency	% of Frequency of occurrence	% of Cumulative Frequency
1	Top management / Leadership	TMC	28	28	10.26	10.26
2	Customer focus / orientation	CF	27	55	9.89	20.15
3	Education & Training	ET	21	76	7.69	27.84
4	Employee Empowerment / Involvement	EE	20	96	7.33	35.17
5	Process management	PM	18	114	6.59	41.76
6	Strategic Management	SM	16	130	5.86	47.62
7	Human resource management	HRM	16	146	5.86	53.48
8	Teamwork	TW	14	160	5.13	58.61
9	Service Design	SD	13	173	4.73	63.34
10	Continuous improvement	CI	12	185	4.4	67.74
11	Information, Evaluation & Analysis	IEA	11	196	4.03	71.77
12	Communication	C	11	207	4.03	75.8
13	Quality information & performance measurement	QIPM	10	217	3.66	79.46
14	Quality culture	QC	10	227	3.66	83.12
15	Benchmarking	BM	9	236	3.3	86.42
16	Supplier quality management	SQM	8	244	2.93	89.35
17	Quality system	QS	8	252	2.93	92.28
18	Role of Quality department	RQD	6	258	2.2	94.48
19	Reward & Recognition	RR	6	264	2.2	96.68
20	Statistical process control	SPC	5	269	1.84	98.52
21	Quality assurance	QA	2	271	0.74	99.26
22	Social ability	SA	2	273	0.74	100

Figure 1

Figure 1 Pareto Analysis of CSFs of TQM

9. INTERPRETATION

Table 2 illustrates the extraction and grouping of 22 CSFs from the 33 research investigations. These 22 CSFs have a total frequency of occurrence of 273, and the cumulative frequency adds up to 100%. Likewise, the table shows that social ability and quality assurance occurs less frequently while top management commitment followed by customer focus depicts highest frequency of occurrences.

Pareto analysis of 22 CSFs discovered that the first 13 "vital few" CSFs revealed 80% of frequency of occurrences, while the following 9 "useful many" CSFs revealed just 20% of frequency of occurrences. In terms of consistencies the current analysis based on number of studies which reveals that 7 out of 13 "vital few" factors are very crucial for the effective operations of service industry especially for banking sector. These are top management commitment, followed by customer focus, education and training, employee involvement, process management, strategic management and human resource management. The aforesaid 7 CSFs have stronger association when it comes to TQM adoption in the service sector.

10. CONTRIBUTION OF THE STUDY

The present study's findings are consistent with previous research conducted in the manufacturing sector by Karuppusami & Gandhinathan (2006), Singla et al. (2011), Karla & Pant (2013), Darshana et al. (2015) and in the service sector (banking industry) by Talib et al. (2011), Ali Husseini & Soo-Fen (2019), Srivastava & Gaur (2016) and Husseini et al. (2019). Numerous CSFs in this finding are identical to studies conducted by different researchers in the manufacturing and service sector.

11. CONCLUSION

According to the frequency of occurrences provided by different researchers in their framework, the study has effectively expressed the group of TQM CSFs. This paper presents a comprehensive evaluation of 33 research papers using the 22 TQM CSFs for the service sector especially based on banking industry. Based on the study, it was found that most CSFs have names that are somewhat different from their descriptions. Likewise, this study provides a set of TQM's “vital few” CSFs, which are significantly recommended by the majority of scholars in their research. Consequently, these CSFs must be the main focus of TQM managers and practitioners. The "useful many" CSFs are listed in this study as well. The study concludes with the four most significant CSFs that stand out as being at the core of the banking industry are top management commitment, customer focus, education & training, and employee involvement.

CONFLICT OF INTERESTS

None.

ACKNOWLEDGMENTS

None.

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This work is licensed under a: Creative Commons Attribution 4.0 International License

		ABSTRACT
		A business firm's ability to grow sustainably is based on the core management philosophy of Total Quality Management. TQM is being implemented by several critical success factors such as customer orientation, apex management commitment, training & education, continuous improvement, etc. In an organization, they are collectively referred to as CSFs of TQM. The presence of key CSF can enhance customer focus and quality performance, which will boost long-term survival and profitability. This study uses the Pareto analysis method where the researcher tries to identify the TQM CSFs in service industry with special reference to banking sector. In order to determine TQM CSFs, 33 research publications in all have been examined. The outcome of this investigation will definitely contribute towards the field of research and it offers a structure for conducting an empirical examination based on TQM practices in banking sector in India.
Received 26 February 2024 Accepted 29 March 2024 Published 13 April 2024 Corresponding Author Bharat Narayandas Basrani, bnbasrani@amrolicollege.ac.in DOI 10.29121/granthaalayah.v12.i3.2024.5577 Funding: This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors. Copyright: © 2024 The Author(s). This work is licensed under a Creative Commons Attribution 4.0 International License. With the license CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
		Keywords: CSFs (Critical Success Factors), TQM (Total Quality Management), Service Sector, Pareto Analysis