EFFECT OF TOTAL QUALITY MANAGEMENT ON CUSTOMER SATISFACTION
Journal Title: International Journal of Engineering Sciences & Research Technology - Year 30, Vol 5, Issue 6
Abstract
Purpose: The purpose of this research is to provide an intermediate step to understanding the complex relationship between total quality management and customer satisfaction. This study presents research which examines the structural relationship between quality management and customer satisfaction in Korea. Specifically, the effects of quality management, employee engagement, continuous improvement, and customer satisfaction are tested. We examined the research model and the research hypotheses basis for applying TQM theories. Methodology/Approach: This study examined a research model for quality management. A questionnaire was developed and survey data was collected. The sample was chosen from the total population of organizations in the Korea. Responses were collected from 380 workers. The study adopts the Input-Transformation-Output (ITO) concept model to construct a variable research model which was tested by structural equation modeling (SEM) analysis. Findings: This research revealed that the benefit of establishing total quality management emerges from leadership and employee commitment so that organizations are able to gain a sustainable competitive edge and performance excellence. High levels of TQM have a significant, positive impact on customer-satisfaction. Research Limitation/implication: We have evaluated the customer satisfaction level using customer perceptions rather than relying on customers’ self-reported indicators. This may lead to statistical error. Upon examining this research, organizations should focus on TQM orientation thinking and execution. Originality/Value of paper: In the past, the relationships between total quality management (TQM), total quality activities, and customer satisfaction were equivocal. In this study however, the researcher built a structural equation model based on TQM theories. Many firms have not considered TQM to be an appropriate tool for creating value and do not recognize its potential for strategic contribution. The study presents that the basic principle (TQM) and provides strategic implications.
Authors and Affiliations
Gye-Soo Kim
Keywords
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