Experiences of TQM elements on organisational performance and future opportunities for a developing country
Purpose - The purpose of this paper is to examine the extent of total quality management (TQM) implementation in Libyan manufacturing companies (LMCs), and its impact on organisational performance (OP). The paper further investigates the impact of TQM implementation on OP, both in the presence or absence, of ISO 9000. Design/methodology/approach - This paper examines the extent of TQM implementation in LMCs, and its impact on OP. The paper further investigates the impact of TQM implementation on OP, both in the presence or absence, of ISO 9000. Findings - The results on the level of TQM implementation in the 56 companies surveyed revealed that Libyan companies are still struggling to embark effectively upon TQM. Data analysis indicated that each TQM element, except supplier quality management, was significantly correlated with at least one of the nine OP improvements. The results of the regression analysis showed that each OP measure was only predicted by one TQM element. However, process management and top management commitment were found to be the most important TQM elements in terms of their impact on OP. This study investigated the impact of TQM implementation on OP in both the presence and absence of ISO 9000 Certification. It was found that there were no significant differences between ISO 9000-certified companies and their non-ISO 9000-certified counterparts in OP, except in exports growth. Research limitations/implications - This study did not examine OP in relation to how long the company had implemented TQM. Other limitations of this research are related to the unrevealed effect of the type of industry on OP, and also to the limited number of key performance indicators used. Originality/value - This empirical study is the first to examine the relationship between all the proposed TQM elements and OP in the Libyan Industrial Sector (LIS). It further adds to the TQM literature on the impact of ISO 9000 Certification on various dimensions of OP. This research highlights the implications, and recommendations for LMCs to effectively adopt TQM elements and increase their OP, which in turn, will assist development of the Libyan economy.