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1 Student First Name: Mohamed Student Second Name: Haffar Copyright subsists in all papers and content posted on this site. Further copying or distribution by any means without prior permission is prohibited, except for the purposes of non-commercial private study or research, as defined in the Copyright, Designs and Patents Act 1988, or as otherwise authorised by statute. To obtain permission, please contact the author of the relevant paper in the first instance or with details of your request. 1

2 Individual readiness for change as a mediator of the effect of organisational culture on TQM implementation: an empirical analysis Abstract The purpose of this study is to fill existing research gap by empirically examining the mediating role of individual readiness for change (IRFC) in the relationship between organisational culture (OC) and total quality management (TQM) implementation. To achieve this, a questionnaire based survey was developed and self-administered to 350 middle managers in Syrian manufacturing organisations (SMOs). The results of this study show support for the mediating role of IRFC as one of the mechanisms through which an organisation s culture comes to have an impact on TQM implementation. Therefore, this study makes a novel contribution by giving a refined comprehension of the relationships between OC types and TQM implementation. 1. Introduction In today s era of global marketing, many organisations in different parts of the world have adopted and implemented the principles and practices of TQM (Talib & Rhman, 2010). This is due to their recognition of TQM as being a means to achieve a business performance, competitive advantage and continuous success in international marketing competition (Bou- Llusar et al., 2009; Kristianto et al., 2012). However, many research studies have indicated a high rate of problems and failures in the process of implementing TQM practices (e.g. Soltani & Wilkinson, 2010). Recent literature in the field of TQM shows that there is an increasing 2

3 recognition of the influence of OC on the success or failure of TQM implementations (Zu et al., 2010; Baird et al., 2011). Despite the substantial body of literature examining the influence of OC on TQM implementation; the mechanism through which an organisation s culture comes to have an impact on TQM implementation has not been adequately addressed. A thorough analysis and discussion of the relevant literature establishes that OC types may influence TQM implementation indirectly through their impact on IRFC. However, the studies on the indirect effect of OC on TQM implementation through IRFC are scant. Given the above, it is clear that there is a gap in the TQM literature in not investigating the mediating role of IRFC on the relationship between OC and TQM implementation. 2. Aim and objectives The primary aim of this study is to examine the influence of OC on TQM implementation success and the mediating role of IRFC in the OC-TQM implementation relationship in SMOs. Accordingly, the objectives of the study supporting this aim are as follows: To investigate the level of implementation of TQM practices and the level of IRFC in SMOs; To identify the OC profiles and characteristics of SMOs; To examine the influences of OC types on TQM implementation and on the level of IRFC in SMOs; To investigate the impact of the IRFC on the level of TQM implementation in SMOs; and 3

4 To examine the mediating role of IRFC in the relationship between OC and TQM implementation. 3. Literature review and hypotheses development The findings of many previous studies indicate that group culture and adhocracy have positive influence on TQM implementation (Dellana & Hauser, 1994; Naor et al., 2008; Zu et al., 2010). In the other hand, the findings of many research studies suggest that market culture has negative influence on TQM implementation (Dellana & Hauser, 1994; Chang & Wiebe, 1996). Therefore, the following hypotheses were developed: H1a. An organisation s emphasis on the hierarchy culture will be negatively associated with the level of implementation of TQM practices. H1b. An organisation s emphasis on the group culture will be positively associated with the level of implementation of TQM practices. H1c. An organisation s emphasis on the adhocracy culture will be positively associated with the level of implementation of TQM practices. H1d. An organisation s emphasis on the market culture will be negatively associated with the level of implementation of TQM practices. The direct-influences arguments for the effects of OC types on the implementing of TQM practices, as a model of organisational change, are convincing. However, a deeper investigation of the literature suggests the mediating role of IRFC in the relationship between OC types and TQM implementation for two reasons. Firstly, the level of IRFC affects the level of TQM implementation success (Weeks et al., 1995; Meirovich et al., 2006). Therefore, it is hypothesised that: 4

5 H2. The higher the level of IRFC, the higher the level of implementation of TQM practices. Secondly, the level of IRFC is influenced by OC types (Eby et al., 2000; Jones et al., 2005 and Choi & Ruona, 2011). A thorough analysis of the literature establishes that organisational members who rate their OC as being high in adhocracy and group culture values rather than hierarchy and market culture values perceive higher levels of IRFC (Eby et al., 2000; Jones et al., 2005). Therefore, the following hypotheses were developed: H3a. An organisation s emphasis on the hierarchy culture will be negatively associated with the level of IRFC. H3b. An organisation s emphasis on the group culture will be positively associated with the level of IRFC. H3c. An organisation s emphasis on the adhocracy culture will be positively associated with the level of IRFC. H3d. An organisation s emphasis on the market culture will be negatively associated with the level of IRFC. Given the fact that IRFC is correlated with both OC and TQM, it is considered that IRFC is a mediating variable operating within OC and TQM implementation. Therefore, the following hypotheses were developed: H4a. IRFC mediates the effect of hierarchy culture on TQM implementation. H4b. IRFC mediates the effect of adhocracy culture on TQM implementation. H4c. IRFC mediates the effect of group culture on TQM implementation. 5

6 H4d. IRFC mediates the effect of market culture on TQM implementation. 4. The conceptual framework The theoretical discussions and proposed hypothesised relationships, have led to the development of the proposed research framework, for explaining the relationship among OC types, IRFC and TQM implementation, as shown in Figure 1. In this framework, IRFC has been positioned as a mediator affects the influence of OC on TQM implementation. This novel theoretical framework was developed by combining the direct effect of OC on TQM implementation and the mediating role of IRFC in the OC-TQM implementation relationship in a single framework. Thus, this theoretical framework is offered as an extension to the work of many authors such as Dellna & Hauser (1994) and Zu et al. (2010) in relation to the influence of OC on the implementation of TQM. This novel framework departs from existing theory regarding the direct influence of OC on TQM in that, it seeks to provide explanations of one of the mechanisms through which an organisation s culture comes to have an impact on TQM implementation. In particular, it highlights the importance of IRFC as a mediator between OC and TQM implementation. Organisational Culture Individual readiness for change 6

7 TQM Brunel Business School Adhocracy - Doctoral Symposium 27 th & 28 th March 2012 culture Implementation Market culture Fig. 1. Conceptual Framework for Research Study 5. Research methodology To carry out this research, a questionnaire was developed. The researcher has utilised three broadly used, reliable and valid instruments from prior studies. In order to measure the level of implementation of TQM practices in SMOs, the valid and reliable instrument developed by Samson & Terziovski (1999) was utilised and adopted. In order to identify the cultural profile and characteristics for SMOs, the organisational culture assessment instrument (OCAI) developed by Cameron & Quinn (1999) was used. Also, the instrument developed by Holt et al, (2007) used and adopted to measure the level of IRFC. Content validity was checked using experts and academics from Syrian universities. The final version of the questionnaire was self-administered to 350 middle managers in SMOs. The overall response rate is percent and a usable response rate of 56 percent. 6. Data analysis and findings All the scales have a high reliability and values of Cronbach s alpha derived for the constructs ranging from to The results of this study reveal that both the implementation of TQM practices and the level of IRFC were low in SMOs. Additionally, it is evident that hierarchy culture and market culture are the dominant OC types in SMOs. Pearson correlation results revealed that TQM practices are significantly and positively correlated to group and adhocracy culture types. In contrast, the analysis shows that hierarchy and market culture types have strong and negative influences on TQM practices implementation. Thus, the results strongly support the research hypotheses numbers H1a, 7

8 H1b, H1c and H1d. The Pearson correlation coefficients show that all TQM practices are significantly and positively correlated with RFC Thus, the results strongly supported the research hypothesis H2. The Pearson correlation coefficients show that RFC is significantly and positively correlated to group and adhocracy culture types. In contrast, hierarchy and market culture types have negative influences on the level of RFC (see Appendix E, Table 6). Thus, the results strongly supported the research hypotheses H3a, H3b, H3c and H3d. The study follows Baron & Kenny s (1986) procedure; steps to examine the mediating role of readiness for change between OC and TQM practices. The first step is to test the direct relationship between the independent variable (OC) and the dependent variable (TQM) in order to establish that there is an effect that may be mediated. As table 1 in Appendix A demonstrated, all OC types affect TQM implementation significantly. Thus, the condition for Step 1 was met. The second step is to examine the influence of the independent variable on the mediator in order to ensure that the mediator variable influenced by the predictor; independent variable. As table 2 in Appendix B shown, all OC types have significant effects on IRFC. Thus, the condition for Step 2 was met. The third step is to test the impact of the mediator on the dependent variable. As table 3 in Appendix C demonstrated, IRFC has a statistically significant impact on TQM practices. Thus, the condition for Step 3 was met. The fourth step is to conduct multiple regression analyses to include the mediator in the models. Table 4 in Appendix D illustrates the regression coefficients regarding the effects of OC types on TQM practices before and after entering the mediator (IRFC) in the regression equation. The findings show that the inclusion of IRFC leads to a decrease in the strength of the impact of OC types on TQM practices. However, the majority of these relationships 8

9 remained significant when the mediator was included, which suggests a partial mediation. The findings show that IRFC plays a mediating role between OC types and TQM practices, supporting the mediation effects in hypotheses numbers H4a, H4b, H4c and H4d. 7. Discussion and managerial implications The results of this study provides support for the arguments of many authors such as Weeks et al. (1995) and Meirovich et al. (2006) by verifying the significance and positive influence of IRFC on the implementation of TQM practices. In addition, the findings of this study align with the results of many research studies such as Chang & Wiebe (1996) by verifying the significance of the group and adhocracy culture types to implement TQM practices, but have found at the same time that IRFC is one of the mechanisms through which an OC emphasising group and adhocracy culture values influences successful TQM implementation. These findings highlight the critical roles of IRFC in the formation of OC-TQM implementation link. The practical implications of the results show that, in order to implement TQM successfully in SMOs, it is recommended to modify their culture orientation in order to be more flexible and move their emphasis towards the values and characteristics of the group and adhocracy culture types. This will lead to the creation of a more positive attitude among their members towards TQM implementation. It would also encourage members eagerness towards TQM. This would in turn increase the possibility of successful implementations of TQM in SMOs. 8. Novelty and Contributions 9

10 The originality of this study is in developing and validating a research framework leading to advancement in the understanding of the relationship between OC and TQM implementation. This novel framework has been developed to investigate the role of the IRFC as a mediating mechanism through which OC types influence the implementation of TQM practices. Thus, this study focuses the mediating role of IRFC as opposed to advancing hypotheses about direct influence of OC on TQM implementation success. This framework has combined the direct effect of OC on TQM implementation and indirect effect of OC (through IRFC) on TQM implementation in a single model. By presenting and validating the differential effects (direct and indirect) of OC types on TQM implementation, the author has demonstrated a refined way of understanding the relationship between OC and TQM implementation. Additionally, this study contributes to the literature of organisational cultural influence on TQM by empirically examining the impact of OC on the level of TQM practices implementation in Syria which is a new context. References Baird et al., K., Jia Hu, K. and Reeve, R. (2011), The relationships between organizational culture, total quality management practices and operational performance, International Journal of Operations & Production Management, Vol. 31 No. 7, pp Baron, R. M., and Kenny, D. A. (1986), The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations, Journal of Personality and Social Psychology, Vol. 51 No. 6, pp Bou-Llusar, J. C., Escrig-Tena, A. B., Roca-Puig, V. and Beltrán-Martín, I. (2009), An empirical assessment of the EFQM Excellence Model: Evaluation as a TQM framework relative to the MBNQA Model, Journal of Operations Management, Vol. 27 No. 1, pp Cameron, K. S. and Quinn, R. E. (1999), Diagnosing and changing organisational culture: based on the competing values framework - Addison-Wesley, Inc Chang, F.S. and Wiebe, H.A. (1996), The Ideal Culture Profile for Total Quality Management: A Competing Values Perspective, Engineering Management Journal, Vol. 8 No.2, pp

11 Choi, M., and Ruona, W. E. A. (2011), Individual Readiness for Organisational Change and Its Implications for Human Resource and Organisation Development, Human Resource Development Review, Vol. 10 No. 1, pp Dellana, S.A. and Hauser, R.D. (1999), Toward defining the quality culture, Engineering Management Journal, Vol. 11 No.2, pp Eby, L. T., Adams, D. M., Russell, J. E. A. and Gaby, S. H. (2000), Perceptions of organisational readiness for change: factors related to employees reactions to the implementation of team based selling, Human Relations, Vol. 53 No. 3, pp Holt, D. T., Armenakis, A. A., Field, H. S. and Harris, S. G. (2007), Readiness for Organisational Change: The Systematic Development of a Scale, The Journal of Applied Behavioural Science, Vol.43 No. 2, pp Jones, R. A., Jimmieson, N. L. and Griffiths, A. (2005), The Impact of Organisational Culture and Reshaping Capabilities on Change Implementation Success: The Mediating Role of Readiness for Change, Journal of Management Studies, Vol.42 No. 2, pp Kristianto, Y., Ajmal, M. M. and Sandhu, M (2012), "Adopting TQM approach to achieve customer satisfaction: A flour milling company case study", The TQM Journal, Vol. 24 No. 1, pp Meirovich, G, Galante, I, and Yaniv, K. M. (2006), Attitudes Towards TQM and the Communication Process between Managers and Subordinates, Journal of Applied Management and Entrepreneurship, Vol. 11 No.1, pp Naor, M., Goldstein, S.M., Linderman, K.W., Schroeder, R.G. (2008), The role of culture as driver of quality management and performance: infrastructure versus core quality practices, Decision Sciences, Vol. 39 No.4, pp Samson, D., and Terziovski, M. (1999), The relationship between total quality management practices and operational performance, Journal of Operations Management, Vol. 17 No.4, pp Soltani, E., Wilkinson, A. (2010), "Stuck in the middle with you: The effects of in congruency of senior and middle managers' orientations on TQM programmes", International Journal of Operations & Production Management, Vol. 30 No.4, pp Talib, F. And Rahman, Z. (2010), Studying the impact of total quality management in service industries, International Journal of Productivity and Quality Management, Vol. 6 No.2, pp Weeks, B., Helms, M. M. and Ettkin, L. P. (1995), Is your organisation ready for TQM?, An assessment methodology, The TQM Magazine, Vol. 7 No.5, pp Zu, X., Robbins, T.L and Fredendall, L.D. (2010), Mapping the critical links between organisational culture and TQM/Six Sigma practices, International Journal of Production Economics, Vol. 123 No.1, pp

12 Appendixes Appendix A Table 1 Pearson correlation between organisational culture types and TQM practices Hierarchy Market Leadership ** ** Human resource ** ** management Customer focus ** ** Strategic ** ** planning Process ** * management Information and * * analysis TQM ** ** ** Correlation is significant at the 0.01 level tailed) Adhocracy.404 **.301 **.640 **.472 **.260 **.300 **.504 ** Group.271 **.447 **.303 **.218 ** **.216 ** ** Appendix B Table 2 Pearson correlation between OC types and IRFC IRFC Hierarchy **.006 Market ** Adhocracy.274 ** Group.203 **.002 Appendix C Table 3 Pearson correlation between IRFC and TQM implementation IRFC 12

13 Leadership.202 **.002 Human resource management.737 ** Customer focus.275 ** Strategic planning.241 ** Process management.504 ** Information and analysis.619 ** TQM.538 ** Appendix D Table 4 The regression coefficients regarding the effects of OC types on TQM practices before and after entering the mediator (IRFC) in the regression equation The regression coefficients Information and analysis * after entering the mediator (IRFC) in the regression equation Process management.242**.131* * Strategic planning.176*.439** -.141* -.164* Customer focus 258**.610** -.175* -.164* Human resource development.310**.106* Leadership.240**.377** -.213** -.255** The regression coefficients before entering the mediator (IRFC) in the regression equation Information and analysis.216 **.300 ** * * Process management.334 **.260 ** * ** Strategic planning.218 **.472 ** **.202 ** Customer focus.303 **.640 ** ** -.208** Human resource development.447 **.301 ** ** ** Leadership.271 **.404 ** ** ** Group Adhocracy Market Hierarchy culture culture culture culture 13