Achieving Quality Assurance through Total Quality Management (TQM) Practices in SMEs

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1 Achieving Quality Assurance through Total Quality (TQM) Practices in SMEs P.M.Aswini 1, Dr.N.Senthil Kumar 2 1 Research Scholar, Department of Studies, Anna University, Chennai, TamilNadu, India. aswini0910@gmail.com 2 Associate Professor, Department of Studies, Anna University, Chennai, TamilNadu, India. sen_nsk76@annauniv.edu Abstract The intention of this article is to afford an in-depth relation of the Total Quality (TQM) by compiling the various research works literature ( ) in the field of small and medium-sized enterprises (SMEs). It gives a board overview of the TQM constructs and the various quality service related aspects. A broad collection of journal databases and books were referred to evaluate the works of different researchers. The contented investigation of the diverse research works led to an arrangement of literature into different factors influencing TQM practices in SMEs and auxiliary growth of research framework. The multiple aspects of the subject are categorized for expectations in the part of TQM with the suggestions. This work will be useful for researchers towards widespread perceptive of the TQM practices in SMEs and how to give the quality assurance to the organizations. 1. INTRODUCTION SMEs play an extremely significant role in the monetary growth of all countries across the world. In the Indian circumstance, SMEs put in 35 percent to exports, afford dispersed employment to 20 million people across the country (succeeding maximum after agriculture), report for 40 percent of the industrial production and 6.29 percent to the gross domestic product. [Singh et al., 2011] In other words, SMEs serve independently and also as ancillary to larger units and assist creating employment as well as industrialize the countryside and backward regions of India. The business actions of SMEs are performed in immediacy to the locals. The SMEs sector is expected to grow multifold in the future years, which is mainly driven by changing lifestyles, income and favorable demographic segmentation. The TQM practices identified will play a significant role in assessing the quality levels. In this paper, the researchers reviewed the past findings on TQM practices in SMEs and proposed a comprehensive outline of TQM to be explored and empirically experienced in further research happenings. The researchers also outlined a set of suggestions related to the total quality service of SMEs to be investigated in the subsequent research works. 2. LITERATURE REVIEW Researchers have taken a keen interest in TQM practices of SMEs for the past five years. The role of SMEs is recognized globally by their contribution to total productivity and job opportunities. Conversely, the greater part of SMEs is likely to fail due to a lack of marketing information and supervisory skills or technical proficiency. Researchers have reviewed the literature of TQM practices in different sectors of SMEs and their findings are listed below. Calvo-Mora et al., studied the relationships linking soft-hard TQM factors and input business results. TQM is an integral management viewpoint which is based on a deposit of social and technical factors that must be set into perform through an orientation frame, such as one in the EFQM model. The findings of the work empirically identify three dimensions to facilitate the soft-hard TQM factors are human resources strategic management of partnerships & resources and processes management. Additionally, it shows how these proportions create a management system that has a significant effect on key business results. Ebrahimi et al., determined the relationship between the multidimensionality of TQM practices and role ambiguity, role conflict and role overload. The results support important negative association among some of TQM practices and role conflict, role ambiguity, role overload. By knowing that multiple regression analysis, information analysis, managing suppliers & process, involvement of employees, customer focus, strategic planning are found to have significant and negative relationship with role stressors. Headship and human resource focus are found to have significant and positive relationship with role stressors. Herzallah A M et al., examined the relationship between TQM practices, aggressive strategies, cost leadership & differentiation and firm concert in the Palestinian economy. Results indicate that TQM practices have an tortuous, constructive and considerable relationship with financial performance through competitive strategies. In accumulation, a straight, optimistic and noteworthy relationship between competitive strategies and financial performance was observed. The findings might assist managers to implement TQM practices in sort to efficiently assign resources and advance financial performance. Bon and Mustafa et al., reviewed the literature on the relationship between TQM and innovation in services organizations, and developed research theoretical framework and initial conceptual model. The hypothesized and conceptualized relationship between TQM practices and innovation model comprises of top management commitment, leadership, involvement of employees, employee empowerment, focus on customer, training, analysis of information, and continuous improvement as independent variable; and radical/incremental 124

2 product innovation, radical/incremental process innovation, administrative and marketing innovation as dependent variables. Calvo-Mora Schmidt et al., investigated the existence of soft and hard TQM factors in the EFQM quality model and their impact on key business results. The findings suggests that the factorial analysis groups together the EFQM's five facilitating agents' criterion in three dimensions: soft factors, managing the strategy of partnership and resources and process management; the regression techniques point out the influence of the hard factors (managing the strategy of partnership and resources and process management) on the key business results and it is noted that the influence of the soft factors on the results is formed through the mediation of the hard factors of TQM. Psomas et al., assessed the ISO 9001 effectiveness (defined as the achievement of the standard s objectives) in service companies. The conclusion reveals that the significant level of ISO 9001 effectiveness achieved by the service companies working in a business environment where a monetary decline dominates. This indicates that service companies are focusing much on satisfaction of customers, prevention of nonconformities as well as continuous improvement. However, there is a chance for further improvement in the level of achievement of the ISO 9001 effectiveness in the service companies. Abdullah and Jose et al., investigated the relationship between the practices of soft and hard quality and to examine the direct and indirect possessions of soft and hard quality management on firm concert. The findings indicate that soft quality management factors have an optimistic influence on hard quality management; hard quality management has a straight effect on performance and soft quality management factors have straight and tortuous effects on performance. Accordingly, hard quality management acts as a mediating erratic between soft quality management factors and performance. Fening and Reagin et al., examined the effect of excellent administration practices impact on the performance and growth of SMEs in a developing country, Ghana. The results have established that if firms implement quality management practices, it will have a fabulous impact on the concert and growth of SMEs in Ghana. The study also finds support for the quarrel that quality management practices advance the organizational performances both in large and small businesses and in any part of the world. Singh et al., analyzed the interaction of factors for success of TQM in SMEs aimed to categorize and expand the structural association amid different factors for success of TQM in SMEs. In whole, 11 factors have been acknowledged for triumphant execution of TQM. The findings concluded that the top management commitment, training employees and empowerment of employees, supplier development and coordination between departments are found to be the foremost energetic factors for implementing TQM, while process satisfying the customers, product/service design and quality are observed as dependent variables. Talib et al., aimed to categorize TQM practices and scrutinize its comparative significance for improved execution in service industries. The virtual importance and ranking of TQM practices in service industries was made during the review of literature, conversation with experts, and the Analytic Hierarchy Process (AHP) approach. On the whole, 17 TQM practices were identified and further divided into three factor (strategic, tactical and operational) categories. The results help the service industry managers to work ahead based on their comparative consequence to advance their TQM performance. Valmohammadi et al., provided dependable and suitable constructs of TQM and a measurement instrument in the perspective of Iranian manufacturing SMEs and to inspect the effects of these seven TQM criteria, namely: leadership, managing the process, supplier focusing the customers, managing the employees, communication and Quality Information System (QIS) & tools and techniques on the managerial performance of the Iranian manufacturing SMEs. The result indicates that leadership plays an imperative role in enhancing organizational performance of the Iranian manufacturing SMEs; on the other hand, organizations encounter some obstacles in entirely utilizing some TQM criterion. Fotopoulos et al., examined the associations of TQM practices in ISO 9000 certified organizations in Greek organizations. The study reveals that practices like process quality management and employee involvement are mainly inclined by practices like quality management and focusing on customer and secondarily by quality improvement tools and techniques. The contribution of companies from all sectors in the research does not suggest the option to include some special characteristics of each entity in determining the management framework. Ueno et al., identified the features that are essential in sustaining service quality. A literature analysis was conducted covering TQM, internal marketing, and service quality. From a relative study of these three areas, it was established that there are seven universal features: recruitment and selection, training, teamwork, empowerment, rewards and performance recognition, communication, and culture of the organization. Each of them is argued to be critical for the management of service quality. Although there are other factors that can influence service quality, the detection of elementary features provide managers and academics with a valuable framework with which to start in pursuit of service quality. 125

3 Zakuan et al., studied the relationship between TQM and organizational performance in automotive industries in Malaysia and Thailand. TQM has been considered as an infrastructural strategy in the operations management research field. It is one of the most recognized models for operational excellence besides lean function, supply chain and managing technology. Both production and service organizations tend to implement this strategy in order to maintain their competitive advantage. The study reveals considerable differences in the various TQM practices and their impact on organizational performance of automotive companies in both countries. The following Table I describe the previous research works pertaining to soft and hard factors on TQM practices in SMEs in a consolidated form. Table 1. Previous research works pertaining to soft and hard factors on tqm practices in SMEs Source: Compiled by authors Factors Identified Researchers Soft Factors Hard Factors Calvo-Mora et al., (2014) Culture, leadership, top management commitment, human resource stakeholders orientation Quality systems, continuous improvement, information technology, product and service design Ebrahimi et al., (2014) Leadership, Customer focus, human resource employee involvement, Strategic planning, process information and analysis Herzallah et al., (2014) Training, employee relationship, customer focus, Process quality data and reporting, product and service design Bon and Mustafa, (2013) leadership, employee involvement, employee empowerment, customer focus Information and analysis, continuous improvement Calvo-Mora Schmidt et al., (2013) Leadership, human resources, customer focus, top management commitment, teamwork, shared vision, personnel training, employee empowerment, etc., Strategy, systems, management tools and processes Psomas, (2013) Customer satisfaction focus Continuous improvement, prevention of nonconformities 126

4 Abdullah and Jose, (2012) Fening and Reagin, (2012) Singh, (2011) Talib et al., (2011) commitment, customer focus, employee involvement, rewards and recognition, supplier relationship Leadership, workforce focus, customer focus Top management commitment, employee training, employee empowerment and participation Top management commitment, quality culture, employee involvement, training and education, teamwork, communication, etc., Feedback, interfunctional design process, new product quality, process control Strategic planning, information and analysis, process management Customer feedback, quality data and reporting, process management Continuous improvement and innovation, quality systems, benchmarking, etc Valmohammadi, (2011) Fotopoulos et al., (2010) Ueno, (2010) Zakuan et al., (2010) Leadership, customer focus, communications, employee and Leadership, Employee involvement, Human contact between employees and customers, customer care and internal marketing Leadership, customer focus and satisfaction, human resource Process quality information systems, tools and techniques Strategic planning, Process tools and techniques Quantifiable techniques and tools Information technology, strategic planning A. Quality Practices The eight QMPs are elaborated with respect to TQM implementation in SMEs. (1) Customer Focus: Firms understand and determine customer needs by meeting their requirements and striving to exceed their prospect. (2) Leadership: Top management should launch unity of purpose and direction; create and maintain the internal environment. (3) Involvement of People: Employees at all levels must be recognized as the essence of the organization, and strategy must be placed to make sure of their complete involvement. (4) Process Approach: A desired result is achieved further proficiently when related resources and activities are managed as a process. 127

5 (5) System Approach to : Identifying, accepting and running a system of interconnected process for a given objective improves the equipped usefulness and effectiveness of firms. (6) Continual Improvement: The Plan-Do-Check-Act cycle is applied to processes. Plan establishes the objectives; Do implements the process; Check monitors and measures the process; and Act takes actions to frequently advance development and system concert. (7) Factual Approach to Decision Making: Effective decisions are based on the investigation of records and information. (8) Mutually Beneficial Supplier Relationship: Firms and their suppliers are mutually dependent and a jointly valuable connection would enhance the ability of both to create value. 3. RESARCH FRAMEWORK AND FUTURE RESEARCH After the comprehensive review of the literature and content analysis the author has derived some predictions for the future research endeavors in the field of total quality management practices in SMEs. In this paper, the author therefore proposes a framework to increase the understanding of TQM practices in SMEs. After analyzing the various factors studied by different researchers in the past, the author conceptualized four different groups which could accommodate the various factors. Therefore the author has categorized the various factors under four broad categories as a) Organizational, b) Human Resource, c) Technology Applications and d) Customer s Relationship The author has conceived the framework for studying the TQM practices in SMEs and the same is presented in the form of Figure. 1 for easy understanding of the readers. Organizational Human Resource Benchmarking Continuous Improvement Leadership Recruitment and Selection Service Culture Rewards and Recognition Strategic Planning Supplier Relationship Top Commitment Training and Development Technology Applications Customer s Relationship Information and Analysis Communication Information Technology Customer Focus Innovation Customer Systems Approach Customer Satisfaction Technical System Service Marketing Tools and Techniques Social Responsibility Source: Compiled by Authors Figure 1. Different Factors Influencing TQM Practices in SMEs Based on the literature review, the author now produces a set of research propositions that could help in developing the knowledge on this area of total quality management. The proposed model captures the different aspects of TQM practices in SMEs. In this part of literature review, the author had explored four propositions that arise from the derived model. The future researches could be done under the following lines: P1- Effect of organizational management on TQM practices in SMEs P2- Effect of human resource management on TQM practices in SMEs P3- Effect of technology applications on TQM practices in SMEs P4- Effect of customer s relationship on TQM practices in SMEs 128

6 These four dimensional frameworks could be further hypothesized in the future research attempts and studied through empirical testing and exploratory studies. Among these four lines of research, the most challenging implication of our research is the effect of the organizational management on SMEs. With the technological development of the retailing formats, this aspect is fully under the control of the marketers. Organizational management could be leveraged by the managers by framing suitable working strategies to tap the potential employees inside the SMEs. Future research studies could be extended in this field by analyzing the interactive effects of the various factors and the employee s personal traits. Similarly, the author has also derived the different factors (soft and hard) influencing the TQM practices in SMEs and the same is presented as Figure 2 for better understanding of the readers. Organizational Customer s Relationship TQM Practices in SMEs Human Resource Technology Applications Source: Compiled by Authors Figure 2. Framework for TQM practices in SMEs 4. CONCLUSIONS Managers must conserve successful TQM execution and the decline of customer complaints and must identify customer s requirements. They must take the inventiveness to make changes to continually improve the quality of their products [Gimenez-Espin et al., 2012]; [Mokhtar & Yusof et al., 2010]. Managers have to understand different kinds of needs for employees; and they have to satisfy all of their needs to help improve the quality of employees working life and successfully implemented TQM [Dahlgaard-Park et al., 2012]. The effectiveness of implementing TQM includes soft TQM practices related to human aspects and hard TQM practices related to technical aspects [Fotopoulos & Psomas et al., 2009]. The effective implementation of the soft TQM practices and its success, are related to hard TQM practices. These findings are very important to managers in industrial SMEs. Keeping in mind the universal nature of TQM, it can be capitalized by managers to benefit their respective businesses. The proper combination and synergistic effect of the various factors influencing the TQM practices in SMEs could lead to more sales turnover hence benefiting the marketers and retailers. After the content analysis of the literature, it was possible to clarify the TQM practices in SMEs perspectives, its various dimensions and its relationship with the employees, and also to present some vital research propositions for the development of TQM practices in SMEs. Based upon the changing trends of the market in the developing economies, it is possible to infer that SMEs may turn into a growing area of research and could be seen across the various forms of retailing. REFERENCES Abdullah, M. M. Bin, & Jose, J. (2012). The Influence of Soft and Hard Quality Practices on Performance. Asia Pacific Review, 17(2), Bon, A. T., & Mustafa, E. M. A. (2013). Impact of Total Quality on Innovation in Service Organizations : Literature review and New Conceptual Framework. Procedia Engineering, 53, Calvo-Mora, A., Picon, A., Ruiz, C., & Cauzo, L. (2014). The relationships between soft-hard TQM factors and 129

7 key business results. International Journal of Operations & Production, 34(1), Calvo-Mora Schmidt et.al. (2013). Soft-Hard TQM factors and key business results. Wseas Transactions on Business and Economics, 10(1), Dahlgaard-Park, S.M. (2012). Core values the entrance to human satisfaction and commitment. Total Quality & Business Excellence, 23(2), Ebrahimi, Z. F., Chong, C. W., & Rad, R. H. (2014). TQM practices and employees role stressors. International Journal of Quality & Reliability, 31(2), Fening, F. A., & Reagin, L. (2012). Impact of Quality Practices on the Performance and Growth of Small and Medium Sized Enterprises (SMEs ) in Ghana. International Journal of Business and Social Science, 3(13), Fotopoulos, C. V, Psomas, E. L., & Vouzas, F. K. (2010). Investigating total quality management practices inter-relationships in ISO 9001:2000 certified organisations. Total Quality, 21(5), Fotopoulos, C.,& Psomas, E. (2009). The impact of soft and hard TQM elements on quality management results. International Journal of Quality & Reliability, 26(2), Gimenez-Espin J.A., et.al., (2012). Organizational culture for total quality management. Total Quality & Business Excellence, 24(5 6), Herzallah, A. M., et.al., (2014). Total quality management practices, competitive strategies and financial performance : the case of the Palestinian industrial SMEs. Total Quality, 25(6), Mokhtar, S.S.M., & Yussof, R.Z. (2010). The influence of top management commitment, process quality management and quality design on new product performance: A case of Malaysian manufacturers. Total Quality & Business Excellence, 21(3), Psomas, E. L. (2013). The effectiveness of the ISO 9001 quality management system in service companies. Total Quality, 24(7), Singh, R.K., Garg, S.K. and Deshmukh, S.G. (2006), Strategy development by Indian SMEs in plastic sector: an empirical study, Singapore Review, Vol. 28 No. 2, pp Singh, R. K. (2011). Analyzing the interaction of factors for success of total quality management in SMEs. Asian Journal on Quality1, 12(1), Talib, F., Rahman, Z., & Qureshi, M. N. (2011). Prioritising the practices of total quality management : An analytic hierarchy process analysis for the service industries. Total Quality, 22(12), Ueno, A. (2010). What are the fundamental features supporting service quality? Journal of Services Marketing, 24(1), Valmohammadi, C. (2011). The impact of TQM implementation on the organizational performance of Iranian manufacturing SMEs. The TQM Journal, 23(5), Zakuan, N. M., Yusof, S. M., Laosirihongthong, T., & Shaharoun, A. M. (2010). Proposed relationship of TQM and organisational performance using structured equation modelling. Total Quality, 21(2),