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Linking Quality with Social and Financial Performance: A Contextual, Ethics‐Based Approach
Author(s) -
Sila Ismail
Publication year - 2018
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/poms.12857
Subject(s) - stakeholder , stakeholder theory , structural equation modeling , total quality management , business , legitimacy , quality (philosophy) , institutional theory , developing country , accounting , industrial organization , process management , knowledge management , marketing , economics , management , computer science , political science , economic growth , epistemology , machine learning , politics , law , service (business) , philosophy
The objectives of this study are to test the relationships among total quality management ( TQM ) practices, corporate social performance ( CSP ), and financial and market performance ( FMP ); and to determine the moderating effects of two contextual factors—country and sector—on these relationships through the lenses of several theories, including stakeholder theory, integrative social contracts theory ( ISCT ), and legitimacy theory. Using data from the various sectors of the economies of two developing countries, Turkey and North Cyprus ( NC ), we tested the proposed model utilizing structural equation modeling ( SEM ). The results from both samples supported the proposed model relationships, providing support for the idea that focusing on stakeholder interests embedded in various TQM practices helps improve both CSP and FMP . Country of origin had no moderating effects on these relationships, whereas sectoral effects were highly significant. The study also discusses the managerial and research implications of these findings.