Description
Total quality management practices in construction industries can be described as the processes or that aligns the business performance strategy to the business processes in the hopes of achieving customer satisfaction and product and services quality.
American Journal of Applied Sciences 10 (6): 638-645, 2013
ISSN: 1546-9239
©2013 Science Publication
doi:10.3844/ajassp.2013.638.645 Published Online 10 (6) 2013 (http://www.thescipub.com/ajas.toc)
Corresponding Author: Faihan Alotaibi, School of Business Management, College of Business, University Utara University, Malaysia,
06010 UUM, Kedah, Malaysia
638 Science Publications
AJAS
ASSESSING THE IMPACT OF TOTAL QUALITY
MANAGEMENT PRACTICES AND QUALITY CULTURE WITH
COMPETITIVENESS OF SAUDI CONTRACTORS
1
Faihan Alotaibi,
1
Rushami Zien Yusoff and
2
Rabiul Islam
1
School of Business Management (SBM), College of Business,
University Utara University Malaysia, 06010 UUM, Kedah, Malaysia
2
School of Economics, Finance and Banking,
College of Business,
University Utara University Malaysia, 06010 UUM, Kedah, Malaysia
Received 2013-05-06, Revised 2013-06-10; Accepted 2013-06-30
ABSTRACT
Total quality management practices in construction industries can be described as the processes or that
aligns the business performance strategy to the business processes in the hopes of achieving customer
satisfaction and product and services quality. Quality culture conditions are strongly linked with project
outcomes and hence, initiatives undertaken should be incorporated to the organizational cultural changes.
The aim of the study is to determine the impact of total quality management practices, quality culture and
their relationship with the competitiveness of Saudi Arabia contractors. A quantitative research design
was adopted to collect data and test hypotheses. A cross-sectional survey method was used to conduct
this study. The findings of the study will contribute to both theory and practice. Through the present
study, the researcher expects the findings to indicate that total quality management practices
meaningfully contributed and related to competitiveness and developing cooperative relationship with
customers; practices that are related to the achievement of continuous improvement and in turn,
continuous improvement affects quality outcomes.
Keywords: Total Quality Management Practices, Quality Culture, Relationship, Competitiveness, Contractors
1. INTRODUCTION
Total Quality Management (TQM) practices are
being widely adopted by contractor companies to solve
problems regarding quality in the construction industry
particularly to satisfy the needs of the customers (Fung
and Wong, 1995; Kanji and Wong, 1998). It is no
surprise that TQM has now become the major business
strategy in current management and has currently been
taken up by companies around the globe (Rad, 2006).
The construction industry is being considered as
comparatively having one of the poorest quality
emphases among different manufacturing and service
sectors (Wong and Fung, 1999). In fact, numerous
criticisms have been heaped on the construction industry
for the general under quality of workmanship. This relates
to the final product and processes that the products undergo,
the peoples and the materials (Mahmood et al., 2006).
Thus, the present study is confined to TQM
implementation in the contractor companies in general and
the Saudi classified contractor companies in particular.
The relation between the total quality management
practices and competitiveness is such that several
organizations are failing to achieve competitive advantage
through TQM practices’ implementation while some
others have succeeded. The failure is attributed to the
incomplete implementation of the crucial TQM practices
and the absence of the assisting assets that must be
simultaneously used with TQM for the achievement of
competitive advantage (Douglas and Judge, 2001).
Faihan Alotaibi et al. / American Journal of Applied Sciences 10 (6): 638-645, 2013
639 Science Publications
AJAS
The competitiveness concept has been defined in
multitude of ways; in the individual firm’s context,
industries context and nation’s context (Alotaibi et al.,
2013). TQM practices implementation comes the
monumental changes that affect elements such as:
Organizational structure, quality culture, leadership, or
design process. Hence, it goes without saying that the
implementation of TQM should have its basis on the
culture, beliefs, traditions and tailor-designed TQM
strategies. TQM’s core principle is based on the fact that all
other business objectives like profit, productivity, market
share growth, happy employees, must stem from the single
objective of customer satisfaction (Bagchi, 1997).
Quality culture may be considered to encompass all the
institutionalized ways and the implicit beliefs, norms and
values and premises which underline and govern
behaviour (Ahmed et al., 1999). Various countries,
nations, regions and enterprises generally project different
feelings, requirements, creations and understanding from
each other. The researchers have still not reached a
unanimous definition of quality culture. Douglas and
Judge (2001), on the other hand, advocate the fact that
quality culture can be investigated in both broad and
narrow points of view. In the former, it is considered to be
phases of consciousness, standards, value orientation,
codes of conduct modes of thoughts and manners and
customers regarding quality issues developed through a
long term production and operating activities of firms and
society and the totality of products, identifications and
actions, (Douglas and Judge, 2001).
Competition is often considered as the contest between
two or more than two entities for a certain attractive target
or goal. Generally speaking, the dictionary meaning of
competitiveness is often an aggressive willingness to
compete. Aggressiveness is considered as the quality of
boldness and enterprising. A competition commonly has
three elements to make it so: main interests of the
independent competition, competitors and the result of
competition (Shi-Rong and Guang-Kun, 2008). Porter
(2003), defines competitiveness as the country’s share of
world markets for its products. From this definition, it can
be assumed that competitiveness is a zero-sum game due to
the competitiveness of one country at the expense of other
countries. Holt et al. (1994), provided a classification of
competitiveness indicators into five categories; contractor’s
organization, financial considerations, management
resource, past experience and past performance. Every
group comprises of particular indicators.
2. MATERIALS AND METHODS
The conceptual framework is adopted from three
comprehensive variables which include TQM, quality
culture and competitiveness. TQM is the single
component considered as the independent variable while
the dependent variables consist of competitiveness. In
addition, quality culture will be considered as the
mediating variable in the relationship between TQM
practices and competitiveness in Fig. 1.
Fig. 1. Conceptual framework
Faihan Alotaibi et al. / American Journal of Applied Sciences 10 (6): 638-645, 2013
640 Science Publications
AJAS
It is notable that when quality culture is intended to
be studied as the mediating factor, the theoretical model
becomes one of a kind. As evidenced by (Abdullah et al.,
2009), quality culture is a fundamental element in such
research model and based on a thorough review of
literature, there is lack of studies investigating the role of
quality culture as a mediating variable between TQM
and Companies’ competitiveness in Saudi construction
companies. Therefore, the justification of the present
study attempting to utilize the same as a mediating
variable for the purpose of the investigation between
TQM and competitiveness is valid. Figure 1 presents the
cconceptual framework of the present study.
There are the following hypotheses:
• H1: Total quality management practices are
associated with competitiveness
• H2: Total quality management practices are
associated with quality culture
• H3: Quality culture is associated with
competitiveness
• H4: Quality culture mediates the relationship
between total quality management practices and
competitiveness
3. RESULTS
3.1. Reliability Test
Pallant (2001), research concluded that new measures
of scales should have reliability to the extent of
minimum 0.60. Reliability implies the reference to
making assessments of the extent to which there is
uniformity amongst the varied measurements of the
variables (Hair et al., 2006). Thus, it can be said that this
process serves as a means to measure levels of
consistency of the given performance levels and
behaviours. According to (Sekaran, 2003). Cronbach’s
alpha has been very frequently used as an indicator for
representing the appropriate indication levels relative to
reliance and internal consistency. It is mostly agreed that
the most widely accepted value for Cronbach’s alpha
turns out to be 0.70 and above (Hair et al., 2006).
Table 1 below summarizes the reliance tests of the
different items. As evident, the Cronbach’s alpha in
terms of measurements related to the lower limits of
acceptance is found to be such that ?>0.70. In view of
such circumstances, all measures were found to be
having considerable reliability.
3.2. Descriptive Analysis
For the purpose of descriptive analysis, the mean
and standard deviation are computed.
Table 1. Reliability results
No. of
Variables Variables items ?
Total quality
management
practices Education and training 4 0.899
Customers focus 4 0.930
Information and analysis 4 0.817
Continuous and improvement 3 0.766
Process management 4 0.887
Employee relations 7 0.929
Top management commitment 4 0.884
Management of supplier 4 0.803
Quality culture Improvement orientation 6 0.929
Team work orientation 4 0.893
Mission and goal orientation 5 0.918
Management style 4 0.853
Personal influence performance 6 0.947
Competitiveness Task environment 5 0.840
Corporate image 6 0.933
Technology and innovation 3 0.862
Marketing capability 4 0.889
Financial capability 4 0.876
Project management skill 4 0.720
Table 2. Means and standard deviations for all variables
Variables M SD
Total quality management 3.69 0.39
Practices (TQMP)
Quality Culture (QC) 3.68 0.45
Competitiveness (C) 3.77 0.36
Table 3. Cohen’s guideline of correlation strength
r Strength of relationship
0.l0 to 0.29/ - 0.l0 to -0.29 Low
0.30 to 0.49/ - 0.30 to -0.49 Moderate
0.50 to l.0 or/ - 0.50 to -0.l.0 High
Table 4. Summary of correlations of variables
Correlation Strength of
Study variables coefficient relationship
TQMP and competitiveness 0.412** Moderate
TQMP and quality culture 0.762** High
Quality culture and 0.353** Moderate
competitiveness
** p
Total quality management practices in construction industries can be described as the processes or that aligns the business performance strategy to the business processes in the hopes of achieving customer satisfaction and product and services quality.
American Journal of Applied Sciences 10 (6): 638-645, 2013
ISSN: 1546-9239
©2013 Science Publication
doi:10.3844/ajassp.2013.638.645 Published Online 10 (6) 2013 (http://www.thescipub.com/ajas.toc)
Corresponding Author: Faihan Alotaibi, School of Business Management, College of Business, University Utara University, Malaysia,
06010 UUM, Kedah, Malaysia
638 Science Publications
AJAS
ASSESSING THE IMPACT OF TOTAL QUALITY
MANAGEMENT PRACTICES AND QUALITY CULTURE WITH
COMPETITIVENESS OF SAUDI CONTRACTORS
1
Faihan Alotaibi,
1
Rushami Zien Yusoff and
2
Rabiul Islam
1
School of Business Management (SBM), College of Business,
University Utara University Malaysia, 06010 UUM, Kedah, Malaysia
2
School of Economics, Finance and Banking,
College of Business,
University Utara University Malaysia, 06010 UUM, Kedah, Malaysia
Received 2013-05-06, Revised 2013-06-10; Accepted 2013-06-30
ABSTRACT
Total quality management practices in construction industries can be described as the processes or that
aligns the business performance strategy to the business processes in the hopes of achieving customer
satisfaction and product and services quality. Quality culture conditions are strongly linked with project
outcomes and hence, initiatives undertaken should be incorporated to the organizational cultural changes.
The aim of the study is to determine the impact of total quality management practices, quality culture and
their relationship with the competitiveness of Saudi Arabia contractors. A quantitative research design
was adopted to collect data and test hypotheses. A cross-sectional survey method was used to conduct
this study. The findings of the study will contribute to both theory and practice. Through the present
study, the researcher expects the findings to indicate that total quality management practices
meaningfully contributed and related to competitiveness and developing cooperative relationship with
customers; practices that are related to the achievement of continuous improvement and in turn,
continuous improvement affects quality outcomes.
Keywords: Total Quality Management Practices, Quality Culture, Relationship, Competitiveness, Contractors
1. INTRODUCTION
Total Quality Management (TQM) practices are
being widely adopted by contractor companies to solve
problems regarding quality in the construction industry
particularly to satisfy the needs of the customers (Fung
and Wong, 1995; Kanji and Wong, 1998). It is no
surprise that TQM has now become the major business
strategy in current management and has currently been
taken up by companies around the globe (Rad, 2006).
The construction industry is being considered as
comparatively having one of the poorest quality
emphases among different manufacturing and service
sectors (Wong and Fung, 1999). In fact, numerous
criticisms have been heaped on the construction industry
for the general under quality of workmanship. This relates
to the final product and processes that the products undergo,
the peoples and the materials (Mahmood et al., 2006).
Thus, the present study is confined to TQM
implementation in the contractor companies in general and
the Saudi classified contractor companies in particular.
The relation between the total quality management
practices and competitiveness is such that several
organizations are failing to achieve competitive advantage
through TQM practices’ implementation while some
others have succeeded. The failure is attributed to the
incomplete implementation of the crucial TQM practices
and the absence of the assisting assets that must be
simultaneously used with TQM for the achievement of
competitive advantage (Douglas and Judge, 2001).
Faihan Alotaibi et al. / American Journal of Applied Sciences 10 (6): 638-645, 2013
639 Science Publications
AJAS
The competitiveness concept has been defined in
multitude of ways; in the individual firm’s context,
industries context and nation’s context (Alotaibi et al.,
2013). TQM practices implementation comes the
monumental changes that affect elements such as:
Organizational structure, quality culture, leadership, or
design process. Hence, it goes without saying that the
implementation of TQM should have its basis on the
culture, beliefs, traditions and tailor-designed TQM
strategies. TQM’s core principle is based on the fact that all
other business objectives like profit, productivity, market
share growth, happy employees, must stem from the single
objective of customer satisfaction (Bagchi, 1997).
Quality culture may be considered to encompass all the
institutionalized ways and the implicit beliefs, norms and
values and premises which underline and govern
behaviour (Ahmed et al., 1999). Various countries,
nations, regions and enterprises generally project different
feelings, requirements, creations and understanding from
each other. The researchers have still not reached a
unanimous definition of quality culture. Douglas and
Judge (2001), on the other hand, advocate the fact that
quality culture can be investigated in both broad and
narrow points of view. In the former, it is considered to be
phases of consciousness, standards, value orientation,
codes of conduct modes of thoughts and manners and
customers regarding quality issues developed through a
long term production and operating activities of firms and
society and the totality of products, identifications and
actions, (Douglas and Judge, 2001).
Competition is often considered as the contest between
two or more than two entities for a certain attractive target
or goal. Generally speaking, the dictionary meaning of
competitiveness is often an aggressive willingness to
compete. Aggressiveness is considered as the quality of
boldness and enterprising. A competition commonly has
three elements to make it so: main interests of the
independent competition, competitors and the result of
competition (Shi-Rong and Guang-Kun, 2008). Porter
(2003), defines competitiveness as the country’s share of
world markets for its products. From this definition, it can
be assumed that competitiveness is a zero-sum game due to
the competitiveness of one country at the expense of other
countries. Holt et al. (1994), provided a classification of
competitiveness indicators into five categories; contractor’s
organization, financial considerations, management
resource, past experience and past performance. Every
group comprises of particular indicators.
2. MATERIALS AND METHODS
The conceptual framework is adopted from three
comprehensive variables which include TQM, quality
culture and competitiveness. TQM is the single
component considered as the independent variable while
the dependent variables consist of competitiveness. In
addition, quality culture will be considered as the
mediating variable in the relationship between TQM
practices and competitiveness in Fig. 1.
Fig. 1. Conceptual framework
Faihan Alotaibi et al. / American Journal of Applied Sciences 10 (6): 638-645, 2013
640 Science Publications
AJAS
It is notable that when quality culture is intended to
be studied as the mediating factor, the theoretical model
becomes one of a kind. As evidenced by (Abdullah et al.,
2009), quality culture is a fundamental element in such
research model and based on a thorough review of
literature, there is lack of studies investigating the role of
quality culture as a mediating variable between TQM
and Companies’ competitiveness in Saudi construction
companies. Therefore, the justification of the present
study attempting to utilize the same as a mediating
variable for the purpose of the investigation between
TQM and competitiveness is valid. Figure 1 presents the
cconceptual framework of the present study.
There are the following hypotheses:
• H1: Total quality management practices are
associated with competitiveness
• H2: Total quality management practices are
associated with quality culture
• H3: Quality culture is associated with
competitiveness
• H4: Quality culture mediates the relationship
between total quality management practices and
competitiveness
3. RESULTS
3.1. Reliability Test
Pallant (2001), research concluded that new measures
of scales should have reliability to the extent of
minimum 0.60. Reliability implies the reference to
making assessments of the extent to which there is
uniformity amongst the varied measurements of the
variables (Hair et al., 2006). Thus, it can be said that this
process serves as a means to measure levels of
consistency of the given performance levels and
behaviours. According to (Sekaran, 2003). Cronbach’s
alpha has been very frequently used as an indicator for
representing the appropriate indication levels relative to
reliance and internal consistency. It is mostly agreed that
the most widely accepted value for Cronbach’s alpha
turns out to be 0.70 and above (Hair et al., 2006).
Table 1 below summarizes the reliance tests of the
different items. As evident, the Cronbach’s alpha in
terms of measurements related to the lower limits of
acceptance is found to be such that ?>0.70. In view of
such circumstances, all measures were found to be
having considerable reliability.
3.2. Descriptive Analysis
For the purpose of descriptive analysis, the mean
and standard deviation are computed.
Table 1. Reliability results
No. of
Variables Variables items ?
Total quality
management
practices Education and training 4 0.899
Customers focus 4 0.930
Information and analysis 4 0.817
Continuous and improvement 3 0.766
Process management 4 0.887
Employee relations 7 0.929
Top management commitment 4 0.884
Management of supplier 4 0.803
Quality culture Improvement orientation 6 0.929
Team work orientation 4 0.893
Mission and goal orientation 5 0.918
Management style 4 0.853
Personal influence performance 6 0.947
Competitiveness Task environment 5 0.840
Corporate image 6 0.933
Technology and innovation 3 0.862
Marketing capability 4 0.889
Financial capability 4 0.876
Project management skill 4 0.720
Table 2. Means and standard deviations for all variables
Variables M SD
Total quality management 3.69 0.39
Practices (TQMP)
Quality Culture (QC) 3.68 0.45
Competitiveness (C) 3.77 0.36
Table 3. Cohen’s guideline of correlation strength
r Strength of relationship
0.l0 to 0.29/ - 0.l0 to -0.29 Low
0.30 to 0.49/ - 0.30 to -0.49 Moderate
0.50 to l.0 or/ - 0.50 to -0.l.0 High
Table 4. Summary of correlations of variables
Correlation Strength of
Study variables coefficient relationship
TQMP and competitiveness 0.412** Moderate
TQMP and quality culture 0.762** High
Quality culture and 0.353** Moderate
competitiveness
** p