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The business excellence models and business strategy
Total Quality Management & Business Excellence
Abstract
The objective of this paper is to investigate the effect of using the EFQM model in Czech companies on business success. The study is based on primary data collected from top managers of selected 477 Czech private companies which are incorporated and located in the Czech Republic. Primary data were collected by the method of oral questioning. The companies under research were selected with the method of non-probability purposive sampling, or more precisely by assumption and occasional selection. The research was carried out in the Czech Republic between October 2018 and January 2019. The relationships are analyzed using relevant regression techniques. From the results generated by research methodology, the EFQM model has a very important weight and plays a key role in the strategic planning of the company. This fact is confirmed by the high direct effect, as well as by the high indirect effect between both variables. These results indicate that the using of the EFQM model constitutes a key piece in the strategic planning of the company to achieve of business success.
... The primary goal of this European Foundation was to promote longterm growth in European economies and increase the competitiveness of European organizations. The Foundation has become the most popular Foundation among European organizations to establish the total quality management (TQM) approach and implement a performance management tool (Zapletalová, 2023;Vukomanovic et al., 2014;Westlund, 2001). The EFQM Model is based on TQM principles. ...
... Although the European Foundation is quite popular worldwide for implementing the TQM approach, Czech firms are not keen on implementing quality models. As a result, in the context of the TQM strategy, Czech firms are not in competition with those of neighbouring nations (Zapletalová, 2023;Nenadál et al., 2018). Hence, empirical studies are important for Czech firms to examine the impact of quality-certificates (and awards) on firm performance. ...
... The findings of prior research studies have revealed that firms that have obtained quality awards demonstrate a higher level of performance compared to their rivals (Zapletalová, 2023;Augustyn et al., 2021). Several scholars have explored the aforementioned results pertaining to firms that have been accredited for their quality by the European Foundation (Yousaf, 2023c;Yousaf, 2022b). ...
Purpose The study’s main purpose is to investigate the impacts of human capital efficiency (HCE) on the firm performance of non-certified and quality-certified firms from the European Foundation for Quality Management (EFQM) Excellence Model. The study also examines the relationship between firm performance and quality-certificates from the European Foundation. Design/methodology/approach By using a sample of 282 non-certified and 22 quality-certified firms from 2017 to 2021, the current study employed a two-step system generalized method of moments (GMM) estimation to analyse the empirical data. The dummy variable is used to examine the relationship between quality-certificates and firm performance. The dummy interaction term is employed to quantify the impacts of HCE on the firm’s performance for quality-certified firms. Findings The results revealed that quality-certificates and firm performance have a positive relationship. Quality-certified firms perform better and earn more profits than non-certified firms. HCE has a positive impact on firm performance for both types of firms. Moreover, the quality-certified firms utilize HCE in an efficient way to earn more profits compared to the non-certified firms. Originality This is the first study to use a comprehensive analysis to emphasize the HCE for non-certified and quality-certified firms separately. The effects of quality-certificates on firm performance in the context of HCE are also being highlighted for the first time in this research. Practical implications The current study’s findings are fruitful for academics, managers, researchers, policymakers, and other firm management. The findings will encourage the management of the firms to implement the total quality management (TQM) approach within their firms.
... To achieve excellent performance, the best practices in terms of leadership, strategy, human resources, customer management, operations, and social responsibility should be embraced. Therefore, business excellence allows for the development and strengthening of management systems and processes in order to enhance organisational performance and create great value for its stakeholders (Zapletalová, 2022). ...
... EFQM model is dynamic, and constantly subject to revision as it must be improved to accompany the progress and transformations in organisations (Fonseca, Amaral and Oliveira, 2021). Over the years, the EFQM model has shaped the quality of organisations and has identified areas of improvement, as this model constitutes a selfassessment tool that can be used to detect the strengths and weaknesses of an organisation (Zapletalová, 2022). Improvement of the image, client satisfaction, commitment and satisfaction of employees, more profits, innovation, and Publications Years optimisation of the use of the information systems are some of the benefits that can be achieved when implementing this model (Suárez et al., 2017). ...
... This Model can be implemented independently of the type of activity (Calvo-Mora et al., 2015;Suárez et al., 2017), such as in manufacturing, banking, finance, education, management, consultancy, etc. , whether it is a public, private or third sector industry (EFQM, 2019) or regardless of its dimensions (Fonseca, 2022). However, it is important to emphasise that private organisations are more prone to achieve excellence through the implementation of the EFQM model (Zapletalová, 2022) and that results depend on the size of organisations, benefiting the larger ones (Calvo-Mora et al., 2015;Veselova, 2018). Escrig and de Menezes (2016) also reinforce that for large organisations to achieve the best results, efforts should be placed mainly on Leadership and systems. ...
... To achieve excellent performance, the best practices in terms of leadership, strategy, human resources, customer management, operations, and social responsibility should be embraced. Therefore, business excellence allows for the development and strengthening of management systems and processes in order to enhance organisational performance and create great value for its stakeholders (Zapletalová, 2022). ...
... EFQM model is dynamic, and constantly subject to revision as it must be improved to accompany the progress and transformations in organisations (Fonseca, Amaral and Oliveira, 2021). Over the years, the EFQM model has shaped the quality of organisations and has identified areas of improvement, as this model constitutes a selfassessment tool that can be used to detect the strengths and weaknesses of an organisation (Zapletalová, 2022). Improvement of the image, client satisfaction, commitment and satisfaction of employees, more profits, innovation, and Publications Years optimisation of the use of the information systems are some of the benefits that can be achieved when implementing this model (Suárez et al., 2017). ...
... This Model can be implemented independently of the type of activity (Calvo-Mora et al., 2015;Suárez et al., 2017), such as in manufacturing, banking, finance, education, management, consultancy, etc. , whether it is a public, private or third sector industry (EFQM, 2019) or regardless of its dimensions (Fonseca, 2022). However, it is important to emphasise that private organisations are more prone to achieve excellence through the implementation of the EFQM model (Zapletalová, 2022) and that results depend on the size of organisations, benefiting the larger ones (Calvo-Mora et al., 2015;Veselova, 2018). Escrig and de Menezes (2016) also reinforce that for large organisations to achieve the best results, efforts should be placed mainly on Leadership and systems. ...
Purpose: The purpose of this paper is to understand whether or not the European Foundation for Quality Management (EFQM) Model and the Shingo Model promote and are embedded into the three pillars of sustainability, as well as to propose a conceptual model for excellence in business towards sustainability. Methodology/Approach: Following the PRISMA methodology, 102 articles were included in the review. A bibliometric co-citation network was created based on those publications to understand the link between the topics, using the VOSViewer software. This paper presents a literature review on the topics of the EFQM and Shingo Model, Corporate sustainability (CS), and the relationship between the excellence models and CS. Findings: Findings from the literature review indicate that effectively the new version of the EFQM Model and the Shingo Model guide organisations towards achieving sustainable economic, social, and environmental results. Research Limitation/Implication: There are still a restricted number of articles on the Shingo Model and on the relationship between the Shingo Model and CS, as well as, on the latest version of the EFQM Model and therefore on the relationship between this model version and CS, which presents a limitation to this paper. Originality/Value of paper: This paper contributes to filling the literature gap regarding the lack of studies evolving the EFQM 2020 model version and the Shingo Model, as well as its relationship with CS.
... Gökçeka and Karakayab [24] define the development of an enterprise as a qualitative and directed change in the structure and nature of the enterprise's business processes, in which more efficient functioning is achieved. Zapletalová [25], considering development at the enterprise level, interprets it as "a set of changes that lead to the emergence of a new quality and strengthening of the system, its ability to resist the destructive forces of the external environment". It is also worth noting the definition of "enterprise development" by Villanueva et al. [26], who consider it as a system of planned internal organisational measures aimed at optimising the functioning of the organisation in relation to the existing and expected states of its environment. ...
... -focus on the long-term global goals of the enterprise and the economic interests of its owners [17,21]; -many possible directions of development, which are conditioned by changes in the external environment of the enterprise [13,49]; -continuity of strategy development, constant adaptation to changes in the internal and external environment [23,25]; -the complexity of the strategy, the consistency of strategic decisions in certain areas of the enterprise, types of resources, functions, etc [28,29,30,50]. The consideration of the content of the concept's "strategy" and "enterprise development" suggests that these categories are closely related. ...
The relevance of this study is due to the fact that for the effective functioning of the enterprise in the current conditions of a dynamic and rapidly changing business environment in the long term, the requirement to develop new approaches to planning the enterprise's activities is highlighted. The purpose of the article is to analyse and identify trends in the development of agriculture. Basic research methods: analysis, regression analysis, method of forecasting, valuation method. Using the example of the cotton subcomplex, the price structure of raw cotton in the agro-industrial complex system is considered with the use of a paired regression analysis of price-forming factors. Based on the analysis, the reflection of the specific features of the agricultural sector in strategic planning is systematised. The problems of systematisation of the specific features of strategic planning in agricultural production have been investigated, a flowchart of a methodology for assessing the vertical content correspondence of strategies of different levels and problem areas of strategic planning has been drawn up, and a targeted scale was compiled for assessing the coefficient of the possibility of self-sufficiency growth in strategic planning. The features of agro-industrial production have been identified, which significantly impact the strategic planning process. The authors concluded that in order to solve the problematic trends in agricultural development, it is necessary to modernize agricultural production and the strategic planning process for agricultural development, which will reflect its development in the long term. The findings of this study can be used by specialised professionals for further study of the specifics of strategic planning in agricultural production, creating and adjusting of state target programs for the development of the agriculture industry.
... This study also included firm size and firm type as control variables to mitigate influences from firms' characteristics. Firm size included three categories: companies with fewer than 50 employees are categorized as small businesses, those with 50-250 employees are classified as medium-sized enterprises, whereas large companies have more than 250 employees [111][112][113]. Firm type was a dummy variable coded as 0 if the level of technological innovation in the firm was low, and 1 if the level of technological innovation was high [114]. ...
Tulisan ini mengeksplorasi strategi bisnis untuk mencapai keunggulan kompetitif melalui pemanfaatan inovasi, transformasi digital, dan keberlanjutan di era modern. Dengan fokus pada literatur dan studi kasus, penelitian ini mengidentifikasi dan menganalisis pendekatan strategi bisnis yang efektif diterapkan oleh perusahaan-perusahaan terkemuka seperti Apple, Walmart, Google, Amazon, dan Patagonia. Strategi utama yang diulas termasuk diferensiasi, kepemimpinan biaya, dan fokus, seperti yang diuraikan oleh Michael Porter. Tulisan ini menyoroti pentingnya inovasi dalam produk, proses, dan model bisnis sebagai kunci untuk mempertahankan keunggulan kompetitif. Transformasi digital juga dibahas sebagai elemen penting yang memungkinkan perusahaan meningkatkan efisiensi operasional dan menciptakan nilai baru bagi pelanggan. Selain itu, integrasi prinsip keberlanjutan dan Environmental, Social, and Governance (ESG) dalam strategi bisnis diidentifikasi sebagai faktor yang meningkatkan reputasi dan daya tarik investasi perusahaan. Tulisan ini juga mengkaji peran agilitas dan ketahanan dalam strategi bisnis modern, menunjukkan bahwa perusahaan yang mampu beradaptasi dengan cepat terhadap perubahan lingkungan bisnis dan pulih dari gangguan eksternal memiliki keunggulan kompetitif yang lebih kuat. Rekomendasi yang diusulkan meliputi pengembangan budaya inovasi, peningkatan transformasi digital, penguatan keberlanjutan dan praktik ESG, pembangunan agilitas dan ketahanan, serta fokus pada pengembangan sumber daya manusia dan hubungan pelanggan. Melalui penerapan praktik terbaik dari perusahaan-perusahaan sukses, tulisan ini menyarankan bahwa perusahaan lain dapat mencapai dan mempertahankan keunggulan kompetitif yang berkelanjutan di pasar global yang semakin kompleks dan dinamis.
... A key driver in achieving this balance is maintaining or increasing a company's competitiveness through the contribution of CSR in the process of reaching excellence [1,11,12]. Although the process of business excellence is not considered a strategy per se, it is the mechanism through which the successful implementation of a strategy can be achieved [13,14]. The two constructs are interwoven, and therefore, integrating CSR into the processes and operations of pursuing business excellence can be a major step for a company to integrate CSR into its strategy. ...
A primary management concern when CSR is used as a tool to build business excellence is whether it will result in a discernible influence on the competitiveness of firms. This concern is more pronounced in the hypercompetitive, customer-centric grocery industry. Despite the existing body of research, no study has combined CSR’s effects on competitiveness and business excellence into a model. The current study proposes and validates a data-driven conceptual model that aims to assess whether the integration of CSR into supermarkets’ (S/Ms’) business excellence practices can enhance their competitiveness. Relationships among the validated constructs were examined using structural equation modeling. Findings indicated that the competitiveness of supermarkets can be enhanced by incorporating CSR into the process of pursuing business excellence, but CSR may be deprioritized in favor of more pressing performance-related issues. Large S/M firms could mentor and advocate for smaller stores and encourage CSR integration through government initiatives.
... Para la GCT se adoptó el modelo EFQM, que es reconocido a nivel internacional como una destacada metodología para evaluar la GCT que ayuda a las organizaciones a gestionar el cambio y mejorar su rendimiento, al considerar a una organización en su conjunto desde una perspectiva holística, compleja y dinámica. El uso de escalas inspiradas en el EFQM ha sido utilizado por varios investigadores en los últimos años (Zapletalová, 2022;Gómez et al., 2017;Álvarez et al., 2014;Calvo-Mora et al., 2014;Parra et al., 2009). ...
La Cultura Organización es ampliamente reconocida como uno de los elementos fundamentales para la implementación exitosa de la Gestión de la Calidad Total, lo cual, no siempre es fácil armonizarlas. El propósito de este trabajo es evaluar la relación entre la Cultura Organizacional y Gestión de la Calidad Total mediante un estudio empírico en las pequeñas y medianas empresas de la industria del vestido del estado de Tlaxcala, México. Se desarrollo un estudio cuantitativo y transversal a través de un cuestionario dirigido a empresarios y gerentes de las PyMES de una muestra de 58 pequeñas y 11 medianas empresas. Se evidencia la relación existente entre la Cultura Organizacional y implementación de la Gestión de la Calidad Total. Las limitaciones de este estudio es su carácter sectorial y está restringido a un territorio específico.
... al., 2021) but also nations as there is a considerable number of countries and organizations, at the European level and beyond, sustaining the implementation of Business Excellence Models (https://efqm.org/; Zapletalova, 2022;Idris, 2019;Toma & Marinescu, 2018). According to Bali, Aggarwal & Sharma (2021), not only that Business Excellence is facilitated throughout the application of Artificial Intelligence (Mhlanga, 2020), as the core of the Industry 4.0 (Gallo, et. ...
By highlighting the importance of tracking the maturity of various phenomena, this study aims at facilitating their response to the emerging changes and reducing the complexity of organizational management processes. To support business excellence and organization management in the SMART WORLD era, special attention was paid to previous findings. The pilot study research was carried out on a sample of 107 enterprises from Poland and Lithuania. The results of the data analysis collected during the quantitative research and their mapping identified: currently leading trends (mainstream - “new normal trends”), trends expected to undergo the development in short/medium/long term perspective and trends labelled as “no future” - fads or one step before their time. Research results were the basis for expressing preliminary conclusions about how to reduce uncertainty and complexity of the process of strategic decision making by contemporary managers.
... Our results support the past study by Muogboh et al. [23] confirming the existence of a relationship between manufacturing strategy and firm manufacturing performance. Our finding further supported by a recent study, Zapletalova [78] specified that BE model constitutes a crucial piece in the strategic planning of the company to achieve business success. ...
Research background: Companies are under considerable pressure to continuously improve their performance in today's highly competitive business world. KPIs have evolved as indispensable tool for assessing and measuring the performance of businesses against strategic objectives. Purpose of the article: The aim of this study is to present the current use of Balanced Scorecard systems and related KPIs in the implementation of the strategic management system in industrial companies in the SMEs segment and introduce a system of proposals for improving their performance, value, and competitiveness in the long term. Methods: The research methodology in the first phase was based on an examination of the available scientific and professional sources in this area. Used sources were selected taking into account the time range of the data up to a maximum of 7 years and in relation to the chosen research topic and objective. The main techniques used were survey and comparative analysis. The research was conducted using a questionnaire from years 2017 to 2022. Using database of the Entrepreneur's Index portal (www.indexpodnikatela.sk), we obtained contact information of 4230 enterprises. From this sample, 290 enterprises showed an active interest and participated in the survey, representing 6.9% of the total sample of 4230 enterprises. The obtained data were analyzed and transformed into a logical form of tabular outputs. Findings & Value added: Based on the research results, we can conclude that companies with more than 20 employees use strategic management systems and have linked KPIs. We also tested and proved the hypothesis of using supporting complementary management systems significantly more often by these companies. However, our research supports our hypothesis that companies that do not use BSCs do not have statistically significantly lower economic ROE. We also did not confirm that the turnover was lower in firms that did not use BSCs. On the other hand our research has shown that better strategic management systems must be built, as there is a lack of consistency between the objectives and essential performance indicators in all aspects of the balanced scorecard.
Objective: This study explores the integration of behavioral design principles into sustainable entrepreneurship to advance energy inclusion. Drawing upon the ABC of Productivity Award framework, which encompasses Activators of Productivity, Behaviors of Value Creation, and Consequences of Productivity, the research identifies and analyzes elements conducive to energy-saving behaviors and sustainable practices. By applying behavioral change strategies, the study aims to provide actionable insights for entrepreneurs to promote energy efficiency and inclusivity within productivity improvement initiatives. Method: Employing a case study approach, this research focuses on the ABC of Productivity Award to extract and analyze criteria, sub-criteria, and tips relevant to energy inclusion. Through systematic examination, the study identifies elements within the framework conducive to energy-saving behaviors and sustainable practices. By categorizing and analyzing these findings, the research provides practical guidelines for integrating energy inclusion into entrepreneurship initiatives. Results: The findings showcase the effectiveness of integrating behavioral design principles, such as award design, nudging, and gamification, into sustainable entrepreneurship. The ABC of Productivity Award model provides a structured framework for integrating these principles, with sections emphasizing social interests, sustainable practices, and productivity outcomes. While the model demonstrates moderate integration of energy inclusion and sustainability, enhancing focus on these elements could further strengthen its ability to drive comprehensive productivity improvements aligned with sustainable practices. Originality: This study contributes to the discourse on sustainable entrepreneurship by elucidating the synergy between behavioral design principles and energy inclusion. By providing practical insights derived from the ABC of Productivity Award framework, the research underscores the importance of integrating behavioral strategies to promote energy efficiency and inclusivity within entrepreneurial endeavors. Ultimately, the study advocates for creating environments and systems that naturally guide individuals towards sustainable behaviors, thereby advancing energy inclusion and fostering long-term positive changes.
Purpose The aim of the study is to identify best practices from Business Excellence (BE) award-winning organizations on the use of their BE self-assessment (internal assessment) and third-party assessment (external assessment including BE award assessments) for organizational improvement. Design/methodology/approach An explanatory sequential mixed methods approach was used to gather data from 50 organizations across 17 countries with varying degrees of BE maturity. Twenty of these, representing 40% of the sample, then participated in semi-structured interviews through which their understanding of the impacts of various practices was explored in more detail. From this sub-sample, three (3) emerged as exemplars used as the case studies reported here. Findings The findings from the first and broader study of the 50 organizations demonstrate a diverse approach to BE assessments, much of which is tailored to the maturity level of each organization. BE organizations with a high BE maturity level are more likely to conduct regular self-assessments and certificate assessment. Key practices identified in the case study organizations were their unique approach to preparing the organization for assessments irrespective of the BE award criteria, the use of mock assessments to prepare for award assessments, the use of customer-led assessments, thorough action plan review process, the use of internal assessments to grow internal capabilities, participation in regular award assessments, the use of external BE assessors and experts for assessments, increased use of technology to support the assessment process, and varying assessment types by organizational BE maturity. Originality/value This research provides a specific and valuable contribution to the existing BE literature by presenting contemporary, real-world examples of best practices in BE assessment. It offers a unique perspective on how award-winning organizations tailor their strategies to meet diverse business needs and strategic objectives.
The paper aimed to examine the changing organisational and management structures in Czech and Dutch companies, emphasising the importance of adaptability and resilience today. The research methods used in the study used a strong comparative approach to analyse the detailed differences and statistical significance between the organisational and management frameworks of these two locations, utilising Chi-Square and ANOVA One-Way analyses. This analytical method enables us to accurately measure the frequency and effects of different management approaches, establishing a solid statistical foundation for our comparison analysis. The research shows a clear shift towards using agile and hybrid models in these companies, emphasising these structures' vital role in improving operational flexibility and market adaptability. This transition is not just a reaction to present market forces but a deliberate repositioning to safeguard companies against global economic risks in the future. The study has consequences that go beyond regional borders and provide significant insights for businesses globally. The study's results demonstrate how agile and hybrid frameworks can effectively promote resilience and responsiveness in businesses facing rapid change and global market challenges. This study emphasises the importance of strategic adaptation for modern corporate performance and offers a guide for companies aiming to navigate today's complex economic environment. This study adds to the overall discussion on organisational strategy by providing practical insights for companies seeking to stay competitive in a constantly changing environment.
Purpose The purpose of this study is to address a critical gap in the existing literature on business excellence implementation. While various studies have examined different aspects of business excellence, there is still a lack of comprehensive research on the optimal organizational excellence architecture (OEA) for an award-winning business excellence journey. The absence of a unified framework has led to inconsistent practices across organizations. The aim of this research based on data collected from 50 organizations across 17 countries is to address this gap and present a refined OEA model. Design/methodology/approach This study employed quantitative and qualitative data collection methods. Member organizations from the Global Excellence Model (GEM) Council participated through an online survey administered via the Qualtrics software platform. Quantitative data were analyzed using the SPSS and Microsoft Excel software tools, while content analysis techniques were applied to the qualitative data to gain detailed insights. Findings The findings refine and extend the OEA model. These contributions lead to a refined OEA definition and open avenues for future research, enriching the current understanding of BE implementation. Originality/value This study introduces a novel concept of OEA to the literature on business excellence implementation. The refined OEA model provides a fresh perspective on the critical components necessary for an award-winning business excellence journey. This research offers significant value to both practitioners and academics by presenting a unified approach to BE implementation, effectively addressing the previously identified gap in BE research.
This study addresses the redesign of a productivity award in the value chain, aiming to provide a comprehensive strategic framework for organizations dedicated to excellence. A notable challenge is identified in the absence of industry-specific models tailored to sector characteristics. In response, the ABCs of Productivity Award is introduced to catalyze sustainable continual improvement in value chains. The research utilizes methodological synthesis, incorporating a comprehensive case analysis across three structured phases. The first phase explores key success factors and conducts a methodical comparative assessment of the current productivity evaluation system against international and national models. This phase lays the foundational bedrock for enhancements in the next phase, involving different focus group deliberations. Informed by insights from the investigative phase, these sessions contribute to preliminary adjustments, forming a blueprint for transformative development. The third phase encompasses a diligent tripartite validation process, involving qualitative, quantitative, and pilot study components. The culmination reveals the scientific meticulous construction of the ABCs of Productivity Award, could be benchmarked in every single industry to create sustainable value while considering various issues that involve different stakeholders. This methodology has been applied to develop national award of Iran’ mining industry and the potential deficits are adjusted in this way and make it efficacious for benchmarking.
This study aims to investigate the influence of Electronic Service Quality (ESQ) on customer patronage and examines the moderating effect of advanced technology in this context. The study employs a custom-designed questionnaire to investigate ESQ, customer trust, customer patronage, and respondents' personal information. The respondents are consumers from e-commerce platforms such as Taobao, JD.com, and Tmall, totaling 130. The survey is conducted through social media platforms such as WeChat, Weibo, and QQ, and the respondents meet the criteria for using electronic services (e-services) and having a purchase intention. The survey results indicate that ESQ has a significant positive impact on customer trust. In particular, customers' trust in electronic commerce platforms increases with their perception of high-quality and reliable e-services. This trust further promotes customers' purchase intention. Specifically, when the level of advanced technology is high, the influence of ESQ on customer trust becomes more pronounced. This study concludes that ESQ substantially impacts both customer trust and patronage. Furthermore, advanced technology's moderating role emphasizes the significance of technological factors in the EC environment.
The study’s main aim is to examine the important determinants that affect working capital (WRC) for non-quality-certified and quality-certified firms from the European Foundation for Quality Management (EFQM) Excellence Model and to explore the impacts of quality certificates on WRC. The study is conducted using the secondary data of 328 firms, including 21 quality-certified firms. The secondary data was retrieved from the Albertina database from 2017 to 2021. The two-step system generalized method of moments (GMM) estimation was employed to test the hypotheses. The empirical findings indicate that firm size and operating cash flow have a positive impact on WRC. On the other hand, financial leverage and profitability have a negative relationship with the WRC. The quality certificates from the European Foundation have a positive impact on both types of WRC. The findings of this study will be beneficial to the firms’ directors, managers, academics, and leaders to sustain the optimum level and forecast future WRC requirements.
This study aimed to find out the effect of applying the standards of the European model of excellence on the functional performance of the Sudanese Electricity Distribution Company Limited (SEDCL) in Sudan. And come up with results that show the reality of the ability of the Sudanese company to apply this model, the best standards for applying it, and the standards where there is weakness in applying them. 200 questionnaires were distributed to the respondents, of which only 172 were valid for analysis. They were retrieved at a retrieval rate of 86%, which is a high response rate that exceeds the acceptable limit of 75%. There is a weak effect of adherence to the application of the standard (leadership, strategy, partnerships, resources, personnel, and operations) on the functional performance of the Sudanese Electricity Distribution Company Limited. The study concluded that the Sudanese company is committed to apply the standards of the European model, and the commitment to apply the standards (customer results, employee results, community results, key performance) affects the functional performance of the Sudanese Electricity Distribution Company Limited. The best model to use (operations, community results, employee results, key results, partnerships, and resources) in terms of their impact on the Functional performance of the Sudanese Electricity Distribution Company Limited The study recommends that Sudanese Electricity Distribution Company Limited review the application of some elements of the European model that have a weak impact on Functional performance (such as leadership, strategy, employees, and customer results) to achieve the greatest benefit from applying this model.
Croatian companies need a new approach that will provide them with sufficient competitive strength, based on business excellence. Focusing only on financial indicators and measures is insufficient. Therefore new concepts should be introduced, especially by large companies that are traditionally inert and exposed to global competition, and situated in the countries with ongoing transition, such as Croatia. Today 75% of the source of value within a company cannot be measured by means of the standard accounting techniques anymore, and in the 21st century it is impossible to rely exclusively on measuring financial parameters. According to the authors, in addition to financial measuring, a way should be found to measure non-financial parameters within a company. The paper is therefore aimed at exploring the influence of business excellence and its values on business in the Croatian business practice. The authors carried out a research on 106 large Croatian enterprises with more than 250 employees, exploring the connection between the values of business excellence and company performance, Results show a positive correlation between applying the principles of business excellence and successful company performance in practice. © 2016, University of Split - Faculty of Economics. All rights reserved.
The purpose of this paper is to research how the critical total quality management (TQM) factors present in the European Foundation for Quality Management (EFQM) model make up a management system. This article presents a significant contribution to the current body of TQM by establishing the model's internal working structure as a management system and also by showing how the way in which the organization designs and starts up this system has a bearing on its results. The methodology used is structural equation modeling (Partial Least Squares technique). The sample consisted of 116 firms. Our findings show that: (1) the EFQM model is a reliable and valid framework to measure the results achieved by the firm; (2) The synergies between the critical factors make up a management system, especially, the importance of leadership, strategy and processes for the system's effectiveness and soundness; (3) The obtaining of a measure of the overall results. This allows us to have an overall indicator of the level of excellence attained by the firm; (4) The process management fully mediates the influence of strategy, and alliances and resources management respectively on overall results.
The purpose of this study is to determine the impact of entrepreneurial orientation (EO) which is represented by five dimensions and business performance. A simple random sampling technique was adopted in which only hundred technology-based SMEs in Malaysia responded to the survey questionnaire and a total of eighty eight responses deemed to be usable. Descriptive statistical tool was used to analyze the data specifically Pearson product moment correlation and regression analysis.
Keywords Abstract Business excellence MBNQA EFQM Business Impact Business Excellence Process Business excellence practice This literature review based study presents the divergent views on the impact of Business excellence models on the performances of the Business excellence award winning firms and highlighted there exists a need to better understand the differences in the key management practices and processes followed by the Award winning firms to that of the high performing non-participating firms and also to better understand the influence that these practices and processes have on improved business performance outcomes. It also presents, based on literature survey, different management practices and approaches followed by the Award winning Firms and highlighted that there exists no comparative study of management practices followed by Award winners and high performing non-participating firms. To fill this gap it presents a research problem and five supporting research questions which the authors intends to take it further.
In the early 1990s, the European Foundation for Quality Management (EFQM) Excellence Model, also known as the INK management model or the CAF model in the Netherlands and Belgium, became widely known both nationally and internationally. To date, many European organisations have used the model as a framework for their organisational development. As we have learnt, success in applying management models such as the EFQM Excellence Model is not guaranteed. Further, views on the value of the EFQM Excellence Model differ. In this article, the authors present a literature review based on the following research question: ‘What empirical evidence is available that performance is enhanced through interventions in the criteria of the EFQM Excellence Model?’ In an analysis of 24 studies from the period 2002–2012, the evidence found is largely limited to descriptive research and to studies that lack control groups. We failed to find any systematic reviews or randomised comparative research.
Purpose: The purpose of this paper is to investigate the relationship between multi-criteria performance measurement (MCPM) practice and business performance improvement using the raw data collected from 33 selected manufacturing companies. In addition, it proposes modified MCPM model as an effective approach to improve business performance of manufacturing companies. Design/methodology/approach: Research paper. Primary and secondary data were collected using questionnaire survey, interview and observation of records. The methodology is to evaluate business performances of sampled manufacturing companies and the extent of utilization of crucial financial (lagging) and non-financial (leading) performance measures. The positive correlation between financial business performance and practice of MCPM is clearly shown using Pearson's correlation coefficient analysis. Findings: This research paper indicates that companies which measure their performance using important financial and non-financial measures achieve better business performance. Even though certain companies are currently using non-financial measures, the researchers have learned that these non-financial measures were not integrated with each other, financial measures and strategic objectives. Research limitations/implications: The limitation of this paper is that the number of surveyed companies is small to make generalization and they are found in a single country. Future research which incorporates a large number of companies from various developing nations is suggested to overcome the limitation of this research. Practical implications: The paper shows that multi-dimensional performance measures with inclusion of key leading indicator are essential to predict the future business environment. But cost-accounting based financial measures are inadequate to do so. These are shown practically using Pearson's correlation coefficient analysis. Originality/value: The significance of multi-dimensional performance measures for business improvement in developing countries has been an issue among researchers. The originality of the paper is evident in the proposal of MCPM model, considering problems being faced by some manufacturing firms leading to low performance.
The competition both in international and national markets created a more complex and changeable market structure. This change forces companies to plan for long-term, examine the activities of rivals and designate dynamic decisions to sustain their lives. Our study focuses on the examination of strategic management tools, which help companies to increase their performance and profitability and analysis of usage level and satisfaction rates of these tools. The survey of this study is conducted on 110 middle and senior level managers of 32 three-star hotels, 32 four-star hotels and 46 five-star hotels that operate in tourism industry in Antalya. Analyses results revealed that customer relationship management (CRM), vision/mission statements and total quality management (TQM) were the most used tools in last five years while CRM, benchmarking and strategic planning are the most used tools currently. Moreover, this study indicated that there were some differences among hotel classification in their preference to use strategic management tools.
Purpose This paper seeks to present a comparative study of framework, criteria and criterion weighting of 20 Excellence Models/National Quality Awards (EM/NQA), to identify their common features, contradictions and to propose suggestions for development and review of EM/NQA. It also aims to provide some clues to attain sustenance of business results. Design/methodology/approach This study is based on a literature review using the internet and research databases (Emerald and EBSCO). Nine generic criteria are identified and their relative importance within each model is computed based on scores given to their respective contents in the criteria/sub‐criteria of each EM/NQA. The average relative importance of nine criteria, discussions with experts and the author's own experience helped to visualise the emerging scenario and suggest improvements. Findings EM/NQA frameworks have different shapes. Most EM/NQA start with the criterion “Leadership” and end with “Results”. Ancient wisdom emphasises that the ultimate goal of business is the wellbeing of society. Although the criteria of EM/NQA are similar, the criterion weighting changes due to external environment and cultural factors. The study classifies nine criteria into core criteria, i.e. the need for survival, internal environment criteria, i.e. differentiators, and goodwill criteria, i.e. ensuring sustainability. The focus on goodwill criteria needs to be enhanced to ensure sustainable business growth. Research limitations/implications This study is an attempt to integrate the common learning/contradictions of EM/NQA and provide clues to achieving sustainability. Many EM/NQA custodian websites have limited information in the public domain. A periodic review of models made this study difficult. Future research may focus on studying the impact of criteria weighting in different countries/economic environments to enhance the effectiveness of excellence models. Practical implications The study may help the GEM council, custodians and managers to review EM/NQA and develop strategies for sustainable results. Originality/value This paper is based on a literature review, the author's own experience, and interaction with experts. It provides an analysis of 20 EM/NQAs, highlights the need for a universally acceptable model, and suggests emerging dimensions of excellence.
The paper presents the key findings of a study on strategy implementation. A qualitative study of 298 interviews was conducted in 12 service organizations. In the paper, the key findings are introduced, and the challenges of strategic communication and action, the identification of and support for strategic actors, and structure and systems aligned with strategy, are discussed.
One way to meet the challenges in creating a high performance organization in health care is the approach of the European Foundation for Quality Management (EFQM). The Foundation is in the tradition of the American Malcolm Baldrige Award and was initiated by the European Commission and 14 European multi-national organizations in 1988. The essence of the approach is the EFQM Model, which can be used as a self-assessment instrument on all levels of a health care organization and as an auditing instrument for the Quality Award. In 1999 the EFQM Model was revised but its principles remained the same. In The Netherlands many health care organizations apply the EFQM Model. In addition to improvement projects, peer review of professional practices, accreditation and certification, the EFQM Approach is used mainly as a framework for quality management and as a conceptualization for organizational excellence. The Dutch National Institute for Quality, the Instituut Nederlandse Kwaliteit, delivers training and supports self-assessment and runs the Dutch quality award programme. Two specific guidelines for health care organizations, 'Positioning and Improving' and 'Self-Assessment', have been developed and are used frequently. To illustrate the EFQM approach in The Netherlands, the improvement project of the Jellinek Centre is described. The Jellinek Centre conducted internal and external assessments and received in 1996, as the first health care organization, the Dutch Quality Prize.
The objective of this paper is to provide a basic framework for researchers interested in reporting the results of their PLS analyses. Since the dominant paradigm in reporting Structural Equation Modeling results is covariance based, this paper begins by providing a discussion of key differences and rationale that researchers can use to support their use of PLS. This is followed by two examples from the discipline of Information Systems. The first consists of constructs with reflective indicators (mode A). This is followed up with a model that includes a construct with formative indicators (mode B).
Recent advances in testing mediation have found that certain resampling methods and tests based on the mathematical distribution of 2 normal random variables substantially outperform the traditional z test. However, these studies have primarily focused only on models with a single mediator and 2 component paths. To address this limitation, a simulation was conducted to evaluate these alternative methods in a more complex path model with multiple mediators and indirect paths with 2 and 3 paths. Methods for testing contrasts of 2 effects were evaluated also. The simulation included 1 exogenous independent variable, 3 mediators and 2 outcomes and varied sample size, number of paths in the mediated effects, test used to evaluate effects, effect sizes for each path, and the value of the contrast. Confidence intervals were used to evaluate the power and Type I error rate of each method, and were examined for coverage and bias. The bias-corrected bootstrap had the least biased confidence intervals, greatest power to detect nonzero effects and contrasts, and the most accurate overall Type I error. All tests had less power to detect 3-path effects and more inaccurate Type I error compared to 2-path effects. Confidence intervals were biased for mediated effects, as found in previous studies. Results for contrasts did not vary greatly by test, although resampling approaches had somewhat greater power and might be preferable because of ease of use and flexibility.
In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.
A Monte Carlo study compared 14 methods to test the statistical significance of the intervening variable effect. An intervening variable (mediator) transmits the effect of an independent variable to a dependent variable. The commonly used R. M. Baron and D. A. Kenny (1986) approach has low statistical power. Two methods based on the distribution of the product and 2 difference-in-coefficients methods have the most accurate Type I error rates and greatest statistical power except in 1 important case in which Type I error rates are too high. The best balance of Type I error and statistical power across all cases is the test of the joint significance of the two effects comprising the intervening variable effect.
Nowadays, TQM implementation through self-assessment application is gaining importance as a means of continuously improving the management of organizations, particularly since the introduction of international quality awards. The models underlying these awards consider the process of organizational learning as a fundamental factor for companies to become competitive in today's environments. Little attention has been given, however, to the relationship between self-assessment application and learning by the specialized literature. Therefore, the author's research attempts to shed light into this topic. This article analyzes the way in which self-assessment application based on the European Foundation for Quality Management (EFQM) Excellence Model facilitates the process of organizational learning (while the EFQM Excellence Model is not broadly used by American firms, this work is not focused on the reference model itself but on the way in which companies employ such models to self-assess how good or bad they are). To reach such an objective, the author has developed an exploratory case study of two Spanish companies with a broad experience in self-assessment, constituting the results obtained through a preliminary theoretical framework in a research field still unexplored.
Purpose – The European Foundation for Quality Management (EFQM) model is widely used as a management tool in companies. Consequently, it is of great importance to understand the relationships within it, and inform managers about appropriate ways to manage events in order to get the desired results in general, and for specific interest groups (stakeholders). The paper aims to discuss these issues. Design/methodology/approach – This paper analyzes the internal relationships of the EFQM model using empirical data from a sample of 199 Spanish companies. Four managers in each company were interviewed, to eliminate single respondent bias. Structural equation modeling is used for the analysis. Findings – The results obtained from the empirical analysis provide evidence of an underlying logic in the EFQM model that does not match the official model. New significant relationships between the enablers and results not considered in the official model have been found. Research limitations/implications – The study focusses on Spanish industrial companies with 50-500 workers and uses a cross-sectional design. Practical implications – Managers should look at the EFQM model as a tool for finding their own way to excellence, but it is not a precise map, because the model may have some problems of definition. Managers should introduce its elements only after deep reflection on its benefit for their company. Originality/value – Despite the previous research on this issue, there is still no clear consensus. Relationships that are not reflected in the theoretical model have been identified.
Purpose The purpose of this paper is to assess whether the implementation of a total quality management (TQM) approach positively affects the financial performance of European companies. This paper tests whether North American results showing the relative out‐performance of companies that have successfully implemented TQM approaches are replicated in Europe. Design/methodology/approach This research uses the same methodology as the seminal work of Hendricks and Singhal. The winning of a Quality Award is used as a proxy for the sound implementation of TQM. Publicly available share price and accounting data is analysed over a ten year period. Changes in the performance of award winning companies relative to non‐award winning companies are tested using a matched‐pair comparison approach. Findings The results confirm that, despite evident and marked differences in company structures and institutional environments between North America and Europe, stronger performance is again achieved by the TQM‐oriented award winning companies. Originality/value There is little empirical research establishing the link between TQM and improved financial performance within Europe, with most existing studies presenting findings only based on perception data. The findings presented in this paper close some of the limitations of previous European studies and use rigorous research methods to estimate the financial and business impact of TQM on company performance in Europe. Furthermore, extending Hendricks and Singhal's seminal study to include Europe, has been an objective of those in the European TQM practitioner community ever since the early results were published.
Purpose The purpose of this paper is to ask how the EFQM Excellence Model and organizations' self‐assessment practice could contribute to the managerial and quantification efforts of intellectual capital (IC) and how indicators and measures applied during self‐assessment can be connected to well‐known intellectual capital measuring models such as Sveiby's Intangible Asset Monitor. Design/methodology/approach The method applied highlights the potentials in the EFQM Excellence Model's criteria system to measure specific IC elements by studying the self‐assessment practice of 31 Hungarian National Quality Award (NQA) winners. Findings The EFQM Excellence Model is a suitable approach for characterizing the management and measurement of human, customer and structural capital within the organization. Research limitations/implications Corporations following regular self‐assessment practice have the ability to measure most of their intangibles, at least those which serve the traceability of strategic purposes and internal measuring objectives. IC measurement can be regarded as part of organizational excellence. Originality/value The criteria system of the EFQM Model makes synergic effects between single IC elements visible. Due to regular and systematic self‐assessments those IC elements are highlighted which support the execution of current strategic purposes. These fortify the contribution of IC management to strategy deployment.
Incorporating sustainability into supply chain management has become a critical issue driven by pressures from governments, customers, and various stakeholder groups over the past decade. This study proposes a strategic decision-making model considering both the operational costs and social costs caused by the carbon dioxide emissions from operating such a supply chain network for sustainable supply chain management. This model was used to evaluate carbon dioxide emissions and operational costs under different scenarios in an apparel manufacturing supply chain network. The results showed that the higher the social cost rate of carbon dioxide emissions, the lower the amount of the emission of carbon dioxide. The results also suggested that a legislation that forces the enterprises to bear the social costs of carbon dioxide emissions resulting from their economic activities is an effective approach to reducing carbon dioxide emissions.
The relationships within the categories of the European Foundation for Quality Management (EFQM) self-assessment model are analysed in this article, based on 242 independent assessments carried out in the European region with the highest density of EFQM awards (the Basque Autonomous Community, in Spain). The main finding of the article is that the relationships within the categories of the EFQM are robust, despite the fact that there exist relationships among some of its enablers and results that fail to reach a suitable level of validity. These findings coincide with the conclusions reached in studies carried out previously on the Malcolm Baldrige model. The conclusions reached in the article may be of interest for both the academic and the professional spheres of activity.
This article examines the current published empirical data relative to the relationship of strategic planning in manufacturing companies and their overall performance. The conclusion from this examination is that this data is far from conclusive in establishing such a relationship. The article also examines the potential advantages and intrinsic values of strategic planning, although this examination illustrates a lack of evidence to substantiate such benefits. Finally, the article suggests a range of implications as a consequence of these results.
Purpose To take an in‐depth look at the EFQM Excellence Model by assessing how enabler and result criteria are interrelated, and how enablers as a whole affect the complete set of results. Design/methodology/approach Provides new insight and understanding of the associations between the EFQM criteria. Canonical correlation analysis is used to measure the relationships between enablers and results, while accounting for interdependences within those sets of variables. To test the suggested causal relationship, data from a questionnaire survey conducted on 446 companies (manufacturing and service sectors) is used. Findings The set of enabler criteria is strongly related to the result criteria set and, with the exception of policy and strategy criteria, all the enablers and result criteria in the EFQM Excellence Model make a significant contribution to this relationship. All the enabler criteria contribute in the same way to result improvements, consequently a balanced approach in the development of enablers allows correlation between enablers and results to be maximised, thereby obtaining an optimal benefit from the EFQM Excellence Model. Research limitations/implications The data obtained are based only on sample of Spanish firms. Studies in other countries should be conducted to ensure the reliability of the results obtained. A natural extension of this paper would be to analyse the existence of differences between industries in the EFQM Excellence Model. Practical implications A greater understanding of the linkages between the elements making‐up the EFQM model, facilitating the guiding role that award models play in the implantation of TQM systems. Originality/value A new perspective for examining the linkages between the EFQM criteria in depth. The study of the relationships between all its elements is taken into account, thereby avoiding testing isolated associations. A holistic approach to studying the relationships in the EFQM Excellence Model.
Purpose The purpose of this paper is to explore the dynamics of the usage of performance measurement (PM) methods and indicators, and this usage's influencing factors in service companies. Design/methodology/approach The study is based on the contingency theory framework and focuses on PM patterns. The sector, company size, and market environment dynamics, which are these patterns' primary determinants, are analysed. The study uses empirical survey data gathered from the 61 largest companies in Estonia. The study has a dynamic focus, explaining the changes in PM practices as in 2004 and 2007. Findings The research shows the increasing use of more balanced PM tools combining financial and non‐financial, market‐related and internal process dimensions. Nevertheless, the findings demonstrate that the companies predominantly used traditional cost accounting and reporting methods, as well as financial indicators for their PM. The findings highlight the similarities and differences between the PM patterns in service companies and manufacturing companies. Research limitations/implications The general limitations of survey‐based research have to be considered. The findings on the PM indicators and methods explain the usage's intensity, but not the effects of this usage on the performance. The study also analyses only a limited number of drivers that influence PM practices. Originality/value The research findings have two main implications. First, the paper contributes to the scarce knowledge about PM practices in service companies. Second, the paper considers the changes in PM patterns, concentrating on the dynamics of PM practices.
Excellence models affect performance and help organizations achieve organizational excellence. Furthermore, organizational commitment is another concern of organizational excellence. The measurement of organizational commitment has become an important issue in TQM. In this respect, the extent to which employees are committed to what they are responsible for may directly influence the level of customer satisfaction with services and products. The main purpose of the study is to determine the relationship between an excellence model and organizational commitment. In order to achieve this goal, a survey that contains Meyer & Allen's Organizational Commitment scale and EFQM Criteria are applied to Turkish Quality Awards winners' employees in 2004. Data obtained in the study have been analyzed at the level of multivariate data analysis and the results show that the relationship between organizational commitment and EFQM Excellence Model was significant. Findings suggest that leadership, partnerships and resources, policy and strategy, affective commitment, processes, results, people development and involvement and continuance commitment are the determinants of the organizational commitment and EFQM Excellence Model respectively. Theoretical and practical implications of the findings are also discussed in the paper.
This paper revisits the nature of business excellence, explores the conceptual development and suggests a normative framework that better supports the measurement, management and delivery of competitive performance at the ‘world-class’ level. It stresses the importance of the firm-specific and situation-sensitive means of evaluation for excellence. The proposed model has four dimensions of operational excellence, strategic fit, capability to adapt and unique voice, which represent correspondingly the classical school, strategic school, dynamic school and individual school of business excellences. The major implication of the research is to understand business excellence from a balanced perspective. Empirical evidence from a mini-case is discussed to demonstrate the applicability and the potential business benefits.
Many organisations have attempted to improve their performance through self-assessment using business excellence models such as the Malcolm Baldrige Model and the European Excellence Model. Recently, however, many have become dissatisfied with this practice. This paper examines why self-assessment using these models might no longer be relevant and useful unless the models and the way they are being used is revised. We review both the academic and practical validity of the models and their procedures, on the basis of the published literature and the authors' own personal experience. The conclusions are that the academic validity of these business excellence models still leaves much to be desired and the business environment has changed considerably since the conception of the models in the late 1980s, such that their practical validity can be called into question. It is suggested that the original models might still be a useful guide to improvement but only for organisations whose conformance quality is poor. More advanced organisations should choose their own relevant dimensions and weightings rather than use any standard one-size-fits-all model with more attention being paid to the processes by which their own business models and strategy are developed.
As decision makers become more involved in implementing Total Quality Management, questions are raised about which management practices should be emphasized. In this exploratory investigation of the relationship of specific quality management practices to quality performance, a framework was constructed. It focuses on both core quality management practices and on the infrastructure that creates an environment supportive of their use. In addition, it incorporates two measures of quality performance and their role in establishing and sustaining a competitive advantage. Path analysis was used to test the proposed model, with multiple regression analysis determining the path coefficients, which were decomposed into their various effects. Weak linkages were eliminated. The trimmed model indicated that perceived quality market outcomes were primarily related to statistical control/feedback and the product design process, while the internal measure of percent that passed final inspection without requiring rework was strongly related to process flow management and to statistical control/feedback, to a lesser extent. Both measures of quality performance were related to competitive advantage. Important infrastructure components included top management support and workforce management. Supplier relationships and work attitudes were also related to some of the core quality practices and quality performance measures. The results were interpreted in light of Hill's concept of order winners and order qualifiers and Garvin's eight dimensions of quality. They indicate that different core quality management practices lead to success in different dimensions of quality, and that those dimensions function differently as order winners and order qualifiers.
This paper reviews the progress of the strategy field towards developing a truly dynamic theory of strategy. It separates the theory of strategy into the causes of superior performance at a given period in time (termed the cross-sectional problem) and the dynamic process by which competitive positions are created (termed the longitudinal problem). The cross-sectional problem is logically prior to a consideration of dynamics, and better understood. The paper then reviews three promising streams of research that address the longitudinal problem. These still fall short of exposing the true origins of competitive success. One important category of these origins, the local environment in which a firm is based, is described. Many questions remain unanswered, however, and the paper concludes with challenges for future research.
This study examines the performance implications of implementing generic competitive strategies, and whether the implementation of a combination competitive strategy yields an incremental performance benefit over a single generic competitive strategy using data from Ghana, a Sub-Saharan African economy implementing economic liberalization policies. Two types of singular generic competitive strategies are analyzed: cost-leadership and differentiation. Our findings from the overall sample provide support for the viability and profitability of implementing coherent generic competitive strategies — cost-leadership, differentiation, and the combination of the singular strategies. The results further indicate that firms implementing a combination strategy tend to experience substantial incremental performance benefits over those implementing only the cost-leadership strategy. However, the incremental performance benefits to firms implementing a combination strategy do not significantly differ from the performance of firms implementing only the differentiation strategy. Furthermore, firms that implement a coherent competitive strategy (combination, cost-leadership, or differentiation) tend to gain considerable incremental performance benefits over firms that are stuck-in-the-middle. Implications are discussed.
Although the small business sector as a whole is achieving phenomenal growth, an important concern in the field has been identifying the problems, challenges, and success characteristics associated with the prudent growth of individual firms. A strategy utilized by many small firms to achieve their growth objectives is one of geographic expansion. This approach involves expanding a firm’s business from its original location to one or more additional geographic sites, and is particularly well suited for firms that cannot expand in their present location but believe that their products or services may be appealing to consumers in other markets.
TQM literature suggests that hard TQM has a profound impact on organisational performance. However, most empirical studies have examined the impact of each dimension of TQM on performance separately. We argue that it is more appropriate to investigate the direct impact of soft TQM on the diffusion of hard TQM, and then assess the direct impact of hard TQM on performance. Analysis of 261 Australian manufacturing companies revealed significant positive relationships between soft TQM and hard TQM elements. In addition to direct affects, soft TQM also has an indirect affect on performance through its effect on hard TQM.
Total quality management (TQM) is an approach to management embracing both social and technical dimensions aimed at achieving excellent results, which needs to be put into practice through a specific framework. Nowadays, quality award models, such as the Malcolm Baldrige National Quality Award (MBNQA) and the European Foundation for Quality Management (EFQM) Excellence Model, are used as a guide to TQM implementation by a large number of organizations. Nevertheless, there is a paucity of empirical research confirming whether these models clearly reflect the main premises of TQM. The purpose of this paper is to analyze the extent to which the EFQM Excellence Model captures the main assumptions involved in the TQM concept, that is, the distinction between technical and social TQM issues, the holistic interpretation of TQM in the firm, and the causal linkage between TQM procedures and organizational performance. Based on responses collected from managers of 446 Spanish companies by means of a structured questionnaire, we find that: (a) social and technical dimensions are embedded in the model; (b) both dimensions are intercorrelated; (c) they jointly enhance results. These findings support the EFQM Excellence Model as an operational framework for TQM, and also reinforce the results obtained in previous studies for the MBNQA, suggesting that quality award models really are TQM frameworks.
Hypotheses involving mediation are common in the behavioral sciences. Mediation exists when a predictor affects a dependent variable indirectly through at least one intervening variable, or mediator. Methods to assess mediation involving multiple simultaneous mediators have received little attention in the methodological literature despite a clear need. We provide an overview of simple and multiple mediation and explore three approaches that can be used to investigate indirect processes, as well as methods for contrasting two or more mediators within a single model. We present an illustrative example, assessing and contrasting potential mediators of the relationship between the helpfulness of socialization agents and job satisfaction. We also provide SAS and SPSS macros, as well as Mplus and LISREL syntax, to facilitate the use of these methods in applications.
Different approaches to improve quality are used in organizations delivering health care. Donabedian introduced structure, process and outcome, from which other approaches like self-assessment, accreditation, visitation, International Standards Organisation (ISO) and European Foundation for Quality Management (EFQM) can be aligned. The EFQM model is one such approach that has been adopted and adapted by the Dutch Institute for Quality Management. This article describes the background and progress relating to the use of the EFQM business excellence model within Dutch health care organizations. In addition the process for applying for the European Quality Award and the Dutch Quality Award are described in detail. Finally, the reader is enlightened regarding the work of the European ExPeRT research group who are promoting the use of quality models within health care.
To expand on previous reports by illustrating experiences German health services organizitions made in their assessment against the European Foundation for Quality Management (EFQM) Excellence Model. To provide an evaluation of the EFQM method compared to peer auditing and accreditation concepts within health care. To indicate the EFQM method and scoring system and draft the process of self-assessment in health services organizitions. To refer to the experiences of German health care pioneers during their early assessments. Using the EFQM approach, an organizition can earn up to 1.000 points. More than 50% of German hospitals scored 200-300 points and not a single organizition achieved over 450 points. To make a comparison, the best score obtained in an industrial setting was between 650-750 points. In addition to the numbers, this report describes success factors and best practices of self-assessments, as well as limitations, barriers and lessons learned during the implementation phase. The Excellence Model is a systematic quality management approach to gain competitive advantage. It is non-governmental, non-financier driven, and generic enough to address health care issues. Having its foundation in industry, however, it is not specific enough to cover all areas relevant to health care. Integrating the management-smart method of self-assessment with clinical standards as delivered by peer auditing and accreditation systems generates the potential to deliver excellence in health care.
Researchers often conduct mediation analysis in order to indirectly assess the effect of a proposed cause on some outcome through a proposed mediator. The utility of mediation analysis stems from its ability to go beyond the merely descriptive to a more functional understanding of the relationships among variables. A necessary component of mediation is a statistically and practically significant indirect effect. Although mediation hypotheses are frequently explored in psychological research, formal significance tests of indirect effects are rarely conducted. After a brief overview of mediation, we argue the importance of directly testing the significance of indirect effects and provide SPSS and SAS macros that facilitate estimation of the indirect effect with a normal theory approach and a bootstrap approach to obtaining confidence intervals, as well as the traditional approach advocated by Baron and Kenny (1986). We hope that this discussion and the macros will enhance the frequency of formal mediation tests in the psychology literature. Electronic copies of these macros may be downloaded from the Psychonomic Society's Web archive at www.psychonomic.org/archive/.
- Katic D.
A Successful Implementation of the Strategy-Focused Excellence In DarouPakhsh Holding (DPH) by Combination of EFQM and BSC
- G Farzandi
- M R Sakaki
- M Saffarinejad
Is Business Excellence of Any Value?
- V Tanner
Understanding business excellence
- R Mann
- M Mohammad
- T A Augustin
Multivariate data analysis. Harlow: Pearson Education Limited
- J F Hair
- W C Black
- B J Babin
- R E Anderson
Integration of EFQM and ultimate Six sigma. A proposed mode
- A Shakin
- R Pourbahman
Performance evaluation: An analysis of performance review measures using the European foundation for quality management model
- S Dover-Haris
- J M Burchel
Quality & performance excellence: Management, organization and strategy
- J R Evans
Business excellence models based on vedic hindu philosophy
- B Goswami
- V Mittal
Strategic management schools and business negotiation strategy of company operations
- K Peleckis
