68.0-March-Case Study TQM in Construction Industry

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The Key to Organisational and Construction Excellence: A Study of Total Quality

Management
*1
Mubarak Reme IBRAHIM, 2Douglas Umbugala MUHAMMAD, 3Bala MUHAMMAD, 4John
Alaezi OKWE & 5Jummai AGIDANI
12345
Department of Building, Faculty of Environmental Sciences, Baze University Abuja, Nigeria
* Corresponding Author: [email protected]
Abstract
The construction industry has shifted towards adopting Total Quality Management (TQM)
techniques in order to maintain a competitive advantage. Despite prior research exploring the
relationship between TQM and organisational performance, the need for a tailored approach to
performance objectives is an overwhelming ambition. This study aims to examine the impact of
TQM practices on organisational outcomes by surveying the knowledge of contractors in the
construction industry. The study identifies eight key TQM practices and assesses their impact on
established performance indicators using a questionnaire administered to 275 contracting
organisations in Abuja, Nigeria. The results reveal a significant relationship between TQM
practices such as top executive commitment, education and teaching, process control, and
continuous progress, and the success of contractor organisations. The study also uses mapping to
demonstrate how these TQM practices can be leveraged to enhance performance outcomes.
These findings emphasis’ the need for flexible and adaptive implementation of TQM practices,
rather than a one-size-fits-all approach, in order to achieve organisational performance
improvement. Additionally, the study highlights the importance of ongoing commitment from
top management in promoting the significance of TQM throughout the organisation.
Key Words: Competitive advantange, Organisational performance, TQM practices, Construction
industry, Quality management, Contractors, Top management
1.0 Introduction
The construction industry, despite being a major contributor to the economy of a nations, has
faced persistent issues that hinder its growth and development(Alaloul et al., 2021; Boadu et al.,
2020). Fragmentation, instability, low productivity, poor quality, and lack of standards have been
long-standing problems that have attracted various criticisms, including poor performance in
terms of profitability, operational performance, customer satisfaction(Al-Sabek, 2015; Sadikoglu
& Olcay, 2014), investments in innovative research and development, and productivity
improvement (Proverbs et al., 2000). The drive for construction contractors is further threatened
by the changing business landscape, with rapidly changing technology (Robinson et al., 2004),
democratisation of information, globalisation, and government pressure playing a significant
role.
As educated clients demand superior quality products and services, organisations in the
construction industry have resorted to adopting Total Quality Management (TQM) practices in
order to take performance to the optimal (Arditi & Gunaydin, 1997; Love et al., 2000; Pheng &
Teo, 2004; Wong, 1999, Umbugala 2016). While the implementation of TQM in other industries,
including manufacturing and services, has been successful in generating enhanced products and
services, increased customer satisfaction, reduced costs, improved financial performance,
increased competitiveness, and raised productivity (Fotopoulos & Psomas, 2010; Tawfik Mady,
2009; Terziovski & Samson, 1999), its impact on the construction industry remains largely
unknown. This is due to the unique characteristics that distinguish the construction industry from

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other industries, which calls to question the applicability of the results from other industries to
the construction sector.
In light of the above, this research seeks to examine the extent to which TQM practices and
organisational performance are correlated and how TQM practices influence organisational
performance indicators within the context of contractors in the construction industry. A review of
existing literature on the topic highlights the lack of empirical evidence on the impact of TQM
on the construction industry, making this research even more relevant with the drive towards the
circular economy. By exploring the correlation and influence of TQM on performance indicators,
this study aims to provide valuable insights into the effectiveness of TQM practices in the
construction industry and to contribute to a better understanding of how TQM can drive the
continuous improvement of organisational performance and excellence. Overall, this research is
of significant importance as it aims to fill a crucial gap in the existing body of knowledge and
provide a comprehensive examination of the impact of TQM practices on organisational
performance within the context of the construction industry.
2.0 Literature Review
2.1 Effect of Construction Industry Performance on Economic Development
The construction sector plays a vital role in the development and growth of both developing and
developed nations (Alaloul et al., 2021). It is a driving force behind the process of industrial and
metropolitan growth, as seen since the beginning of the Industrial Revolution (Rostow, 2003).
The sector involves a wide range of players, including professionals, tradesmen, manufacturers,
trade unions, investors, local authorities, specialists, contractors, and many others, who work
together to achieve successful results. The coordination of these entities requires a high level of
expertise and management skills to ensure effectiveness and the efficient execution of projects.
Construction projects are significant investments, both in terms of finances and time, and
therefore, require a comprehensive understanding of the construction process. This includes
knowledge of the latest technologies and materials, regulations, construction practices, and
market trends. The construction sector also contributes to the socio-economic development of a
country by generating employment opportunities, stimulating economic activity, and creating
new infrastructure that supports economic growth (Oladinrin et al., 2012).
2.2 Total Quality Management (TQM)
The Total Quality Management (TQM) movement has been shaped and influenced by a number
of industry gurus, including Crosby, Juran, Taguchi, and Deming. Each of these individuals
brought a unique perspective to the concept of quality, which has helped to evolve TQM into a
comprehensive and integrated approach to management. Crosby's approach focused on the zero-
defect program, where the goal was to eliminate defects in the production process and ensure that
the final output met the customer's specifications. On the other hand, Juran's approach focused
on identifying the root cause of quality issues, while Deming stressed the importance of 14
quality objectives in TQM implementation. Taguchi's contribution to TQM was his emphasis on
the idea that any deviation from the customer's specifications results in failure and that the
organisation must strive to understand and satisfy those specifications.
Quality management, in the context of TQM, goes beyond just the output or service itself.
Instead, it focuses on the processes used to achieve TQM, using management tools and
techniques to ensure consistent quality in all products and services (Ahire & O’shaughnessy,
1998; Prajogo & Sohal, 2006). This is achieved through the integration of quality development,
quality maintenance, and quality improvement across all levels of an organisation.TQM is an
effective strategy that leverages the collective efforts of management, employees, suppliers, and
customers to achieve customer satisfaction and exceed expectations (Feigenbaum, 1991). It's a
philosophy of continuous improvement that drives organisations to optimize their products,

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services, and processes. The key to success with TQM is the involvement of all stakeholders,
who work together towards a common goal of providing quality products and services.
2.3 Concepts of Total Quality Management TQM
The implementation of Total Quality Management (TQM) is challenged by the lack of a
universally accepted definition of quality (Eng Eng & Yusof, 2003). Over the years, several
quality gurus such as Deming, Crosby, Feigenbaum, Oakland, and Juran have each proposed
their own interpretations of quality. For example, Deming defines quality as satisfying customer
expectations, while Crosby views it as conformance to specifications. (Feigenbaum, 1991)
considers quality as the composite of marketing, engineering, and maintenance efforts to meet
customer expectations. On the other hand, (Juran & De Feo, 2010) defines quality as fitness for
purpose and (Oakland, 2012) sees it as meeting customer needs.
TQM, as defined by Turner & Muller (2004), is a holistic approach that aims to harness the
efforts of all employees to eliminate errors, minimize costs, and meet client needs (Yusuf et al.,
2007). The concept of TQM was developed by Dr. W. Edward Deming in the 1940s, following
the conclusion of World War II. In recent years, the need for TQM has increased due to intense
global competition, increased consumer awareness of quality, rapid technological advancements,
and the need for organisations to attain world-class status. To meet these demands and improve
their quality standards, many organisations are implementing TQM programs and quality
initiatives to gain a competitive advantage and improve business performance(Talib et al., 2011).
TQM is a top-down approach led by top management with a strong commitment to quality.
2.4 Benefits of TQM
The advancements in Total Quality Management (TQM) have resulted in various methods,
perspectives, and contexts, leading to different categorizations of benefits. While (Oakland,
2014) focused on the operational improvements brought by TQM, (Goldratt & Cox, 1984)
looked at the external factors such as competitiveness, customer satisfaction, and financial
outcomes. Rust et al., 1995 ) summarized the main benefit of TQM as "customer satisfaction
through continuous improvement in every organisational process involved in delivering products
and services. Santos & Escanciano, 2002 ) added that this satisfaction involves both internal and
external customers.
Antony et al., 2002 ) conducted a study on the critical success factors for TQM in the Hong
Kong industry and identified seven benefits using factor analysis, including increased employee
involvement, enhanced communication, improved productivity, improved quality, increased
customer satisfaction, reduced cost of poor quality, and improved competitive advantage. The
classification of TQM benefits can vary, from a general "improved customer satisfaction" to a
more detailed classification into employee benefits, productivity improvements, quality
enhancements, customer satisfaction, cost savings, and competitiveness gains.
2.5 The Relationships Between TQM Practices and Performance
This section is summarising the results of previous studies that have investigated the relationship
between Total Quality Management (TQM) practices and various organisational outcomes. The
authors noted that many studies have found positive associations between TQM and outcomes
such as productivity and manufacturing performance, quality performance, employee
satisfaction/performance, innovative performance, customer satisfaction/results, competitive
edge, market share, financial performance, and aggregate firm performance (Brah et al., 2000;
Demirbag et al., 2006; Fotopoulos & Psomas, 2010; Joiner, 2007; Kumar et al., 2009; Prajogo &
Brown, 2004; Prajogo & Sohal, 2006; Rahman & Bullock, 2005; Talib et al., 2013; Terziovski &
Samson, 1999; York & Miree, 2004; Zehir et al., 2012).

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However, the authors also acknowledged that some studies have reported negative results, which
suggests that the relationship between TQM and organisational outcomes is not always
straightforward and may vary depending on the context and the specific TQM practices being
used (Brah et al., 2002; Ittner & Larcker, 1997; McCabe & Wilkinson, 1998; Mohrman et al.,
1996; Nair, 2006; Rungtusanatham et al., 1998; Sadikoglu & Olcay, 2014; Yeung & Chan,
1998). This highlights the need for further research to gain a more comprehensive understanding
of the impact of TQM on organisational outcomes.
2.5.1 Top Management Commitment
Organisations led by top management fully committed to TQM practices and principles are more
likely to experience positive outcomes in various aspects of the organisational performance. This
includes improved operational performance, inventory management performance, employee
performance, innovation performance, social responsibility and customer results, financial
performance, and overall firm performance(Criado & Calvo-Mora, 2009; Goetsch & Davis,
2014).
Studies have shown that top management commitment to TQM practices leads to a more
collaborative and participatory organisational culture, where employees are encouraged to get
involved in decision-making and to take ownership of their work(Ahire & O’shaughnessy, 1998;
Al-Swidi & Mahmood, 2012; Jabeen et al., 2014; Joiner, 2007; Macinati, 2008; Parast & Adams,
2012; Phan et al., 2011; Powell, 1995; Prajogo & Sohal, 2006; Samson & Terziovski, 1999).
This creates a more engaged and motivated workforce, which, in turn, contributes to better
organisational performance and excellence. Top management commitment also supports the
development of a comprehensive TQM system, which includes effective communication
channels, employee development programs, and efficient information management. All of these
elements work together to create a more effective and efficient organisation, where quality is
integrated into every aspect of the business.

H1: Top management commitment positively influences organisational performance.


2.5.2 Customer Focus
A strong focus on customer needs and expectations within Total Quality Management (TQM)
practices leads to significant improvements in organisational performance across various key
performance indicators, including operational performance, inventory management performance,
employee performance, innovation performance, customer satisfaction, sales, and overall firm
performance. This is supported by numerous studies(Ahire & O’shaughnessy, 1998; Al-Swidi &
Mahmood, 2012; Granerud & Rocha, 2011; Jabeen et al., 2014; Joiner, 2007; Phan et al., 2011;
Samson & Terziovski, 1999; Zehir et al., 2012). By focusing on meeting the needs and
expectations of customers through TQM practices, organisations are able to improve the quality
and reliability of their products and services, increase efficiency and productivity, and ultimately
drive customer satisfaction, sales, and overall firm performance.
H2: Customer focus positively influences organisational performance.
2.5.3 Employees/People Management
Employee involvement in quality management efforts is crucial to the success of TQM
initiatives. Employees should understand their role in the organisational goals and strategies to
enhance performance. Empowering employees to engage in quality efforts and fostering a sense
of ownership leads to better results, as employees take a vested interest in improving
products/services and processes. Research has shown that effective people management
positively impacts organisational performance, including operational performance, supply
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management performance, social responsibility and customer results, financial performance, and
overall firm performance(Ahire & O’shaughnessy, 1998; Jabeen et al., 2014; Macinati, 2008;
Parast & Adams, 2012; Sadikoglu & Olcay, 2014; Samson & Terziovski, 1999).

H3: Employee/People Management positively influences organisational performance.


2.5.4 Supplier Quality Management
The relationship between Total Quality Management (TQM) and supply chain management is
crucial. TQM helps to reduce and streamline the supplier base to manage supplier relationships
and develop strategic alliances with suppliers. It is important to involve suppliers early in the
product development process to benefit from their expertise and capabilities. Supplier quality
management is vital as it provides reliable and high-quality inputs that result in high-quality
products and/or services(Ahire & O’shaughnessy, 1998; Jabeen et al., 2014; Phan et al., 2011;
Powell, 1995). Previous studies have shown that effective supplier quality management
positively impacts operational performance, inventory management, innovationve performance,
and overall firm performance. Thus, the hypothesis is that supplier quality management
positively influences organisational performance.

H4: Supplier quality management positively influences organisational performance.


2.5.5 Education and Training
TQM organisations should provide training and education to their employees to improve their
skills in their job responsibilities. Effective training leads to better quality management,
improved employee performance, increased customer satisfaction, and overall improved firm
performance. Studies have shown that training has a positive impact on operational performance,
inventory management, employee performance, innovation, market and financial performance,
and overall firm performance(Fuentes et al., 2006; Phan et al., 2011; Sadikoglu & Olcay, 2014).
However, some studies have reported negative or insignificant results. The researchers propose
the hypothesis that training positively impacts organisational performance.

H5: Education/Training positively influences organisational performance.


2.5.6 Process Management
Effective knowledge and process management are key to a successful Total Quality Management
(TQM) strategy. Process management focuses on activities, not just results, and is proactive in
reducing variations in the process and improving product quality. Effective knowledge
management ensures that employees have access to reliable and consistent data and information
to perform their jobs efficiently. Monitoring data on quality helps improve the turnover rate of
materials and supply, identify and fix errors in processes, and minimize negative environmental
impacts. Previous studies have found that knowledge, process management, and statistical
control/feedback have a positive impact on operational performance, supply management,
innovation, customer results, competitiveness, financial performance, and overall organisational
performance(Forza & Filippini, 1998; Macinati, 2008; Parast & Adams, 2012; Phan et al., 2011;
Sadikoglu & Olcay, 2014; Zehir et al., 2012).

H6: Process management positively influences organisational performance.


2.5.7 Continuous Improvement
The concept of continuous improvement aims to improve business processes, meet and exceed
customer requirements, and comply with regulatory standards. In the construction industry, this
involves tracking the cost of quality processes, using quality tools, continuously reviewing and
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improving safety and workplace environment, encouraging project quality improvement
discussions, and benchmarking processes. Studies have shown that continuous improvement has
a positive impact on operational performance, inventory management performance, customer
satisfaction, and market performance(Al-Swidi & Mahmood, 2012; Ittner & Larcker, 1997;
Macinati, 2008; Phan et al., 2011). However, it may not have a statistically significant
relationship with perceived performance in the computer industry.

H7: Continuous Improvement is positively related to organisational performance.


2.5.8 Information and Analysis
Continuous Improvement focuses on reducing process variability and improving output
performance by continuously reviewing and enhancing business processes. This approach
involves tracking the cost of quality processes, utilizing quality tools, practicing continual review
of construction safety and processes, and benchmarking processes for improvement. The results
of continuous improvement efforts can positively impact operational performance, inventory
management, customer satisfaction, market performance, and overall company
performance.TQM philosophy emphasizes analyzing information on customer needs and
operational problems to drive quality excellence. Many TQM techniques help organisations
process information for improvement(Forza & Filippini, 1998; Jabeen et al., 2014; Macinati,
2008; Phan et al., 2011; Zehir et al., 2012). However, information and analysis can also inhibit
organisational performance in certain cases. Empirical research has shown that information and
analysis can improve customer results, supply management performance, operational
performance, innovation performance, financial performance, and overall company performance.

H8: Information and analysis positively influences organisational performance.


3.0 Research Methodology
This study used deductive research design, which involved developing hypotheses and designing
a research strategy to test the formulated hypotheses. The quantitative approach was employed to
collect data using questionnaires to identify Total Quality Management (TQM) practices,
organisational performance indicators, assess the influence of the identified TQM practices on
the performance of Construction Contractors, and map out applicable TQM practices to improve
the performance of Construction Contractors. Abuja, one of the construction hubs in Nigeria
where most construction companies execute their projects, was chosen as the study area. The
study employed convenience sampling, and the population size was 965. The questionnaire was
designed to collect data from companies that were tax compliant. The collected data were
grouped into four parts to collect information on the demographics of construction firms, TQM
practices, performance level of construction firms based on the influence of TQM practices, and
influence of practices on the established performance indicators. A total of 275 questionnaires
were self-administered on a one-to-one basis, and to improve the response rate, measures such as
shorter questionnaire pages and promising a summary report of the result of the study were
incorporated within the survey. The targeted respondents were the executive, senior, and middle
management staff. Descriptive was used statistics was used to describe the characteristics of the
data and Pearson correlation coefficient used in order to determine the relationship between these
variables.
4.0 Results and Discussions
4.1 Demographic of the respondents
The results of the survey showed that 52.1% of the respondents held top management positions
and 46.0% held middle management positions, highlighting the level of knowledge about their
organisations' performance. Additionally, 25.8% of the respondents held Diplomas and over 60%
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held first-degree certificates, with the remaining 14.1% having Master's degrees. With regards to
experience, 15.3% of the respondents had less than five years, 39.3% had between six to ten
years, and 45.4% had over 11 years of experience in the construction industry.
The importance of this distribution lies in capturing the various levels of experience in the field.
It is noteworthy that over 45% of the respondents had more than 11 years of experience in the
construction industry. However, the results also showed that only 22.1% of the respondents'
organisations had quality certification, indicating that the level of awareness about quality
certification in the Nigerian construction industry is low, which requires improvement to address
the quality issues in the industry.
Table 4.1: Demographic of the respondents

Respondents ‘Distribution Frequency Percentage(%)

Managerial position:
Top management 85 51.0
Middle management 78 49.0

Education level:
Diploma 42 25.8
Bachelors degree 98 60.1
Masters degree 23 14.1

Services carried out:


Building construction 84 52.0
Civil engineering 42 25.2
Others 36 22.1

Working experience:
1-5 years 25 15.3
6-10 years 64 39.3
11 years and above 74 45.3

Certification to Quality system:


No 127 77.9
Yes 36 22.1

4.2 Reliability of the research Instrument


Cronbach's alpha measures the internal consistency and reliability of a set of items that make up
a single scale. It can also be calculated for any subset of items within the scale. According to
(Gliem & Gliem, 2003), a newly developed measure can be considered valid if its Cronbach's
alpha is above 0.60, with the ideal threshold being 0.70. A value of 0.80 or higher is considered a
strong indicator of reliability. The results of the Cronbach's alpha calculation for the TQM
practices and performance variable are summarized in Table 4.2. With a Cronbach's alpha of
0.890, the TQM practices show a high level of reliability. The performance variable has a
Cronbach's alpha of 0.878, which is within the acceptable range, indicating that the individual

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constructs used to measure performance are reliable. These results confirm that the instrument
used is highly reliable.
Table 4.2: Reliability Analysis

Variable No. Of Items Alpha Reliability Coefficient

TQM practices
(Independent variable) 8 .890
Performance Measures
(Dependent variable) 7 .878

Source: Field Survey (2022)


4.3 Descriptive Statistics for the Study Variables
Table 4.3 presents the results of the descriptive statistics for the TQM dimensions and the
characteristics of the TQM dimensions and organisational performance variables studied. The
results show that the mean of the TQM dimensions ranges from 3.31 to 3.82. The mean of the
top management commitment is the highest (3.81), indicating that the top management plays a
crucial role in leading the organisation's quality efforts. On the other hand, the mean for
employee/people management is the lowest (3.31), which suggests that employees do not place
much importance on performance efforts. This could be a result of the nature of the industry
where the workforce is sometimes nomadic, reducing the contribution to organisational
performance. The scale used in this study ranges from 1 to 4.
For organisational performance, the variables range from 2.95 to 3.86, with a scale of 1
representing 50% and 5 representing over 95%. This indicates that contractor organisations place
a strong emphasis on performance variables to achieve their objectives. All of the means of the
variables in this study are above the midpoint, which means that most respondents have similar
opinions about each of the variables. Furthermore, the standard deviation (SD) is less than one,
indicating that the variations in respondent opinions are small. In summary, mean and SD were
used to determine the extent of spread of the data.
Table 4.3: Results of descriptive statistics of overall TQM practices and Organisational
performance

Variables Mean Std.Deviation

8
Top Management Commitment 3.82 .512
Customer Focus 3.72 .503
Employee/People Management 3.31 .641
Supplier Quality Management 3.73 .510
Education/Training 3.70 .620
Process Management 3.67 .629
Continuous Improvement 3.71 .552
Information and Analysis 3.71 .577

Customer Satisfaction 2.97 .780


Employee Performance 3.66 .611
Profit Improvement 3.84 .541
Process improvement 2.98 .757
Market/Financial Performance 3.86 .516
Operational Performance 3.37 .625
Innovation Improvement 2.95 .776

ValidN 163

4.4Correlation between TQM practices and Organisational performance variables


The study investigated the relationship between Total Quality Management (TQM) practices and
organisational performance. The TQM practices include Top Management Commitment (TMC),
Customer Focus (CF), Employee/People Management (E/PM), Supplier Quality Management
(SQM), Education/Training (E/T), Process Management (PM), Continuous Improvement (CI),
and Information and Analysis (IA). Meanwhile, the organisational performance dimensions
consist of Customer Satisfaction (CS), Employee Performance (EP), Profit Improvement (PI),
Process Improvement (PIm), Market/Financial Performance (M/FP), Operational Performance
(OP), and Innovation Improvement (II). The results are presented in Table 4.2.
The correlation analysis showed that there is a positive relationship between the TQM practices
and the organisational performance dimensions. This suggests that implementing TQM practices
can lead to improvement in organisational performance in various areas, such as customer
satisfaction, employee performance, financial performance, and operational efficiency. The
results indicate that a focus on TQM practices can have a positive impact on organisations and
contribute to their overall success.
Table4.4: Correlation between TQM Practices variables and Organisational Performance
variables

Variables 1 2 3 4 5 6 7 8 9 10 11

9
1 TopManagementCommitment -
2 CustomerFocus .248** -
3 Employee/PeopleManagement.209**.277**-
4 SupplierQualityManagement .236**.047 .277** -
5Education/Training .259** .297**.201**.204** -
6ProcessManagement .244**.087 .269**.067 .253** -
7ContinuousImprovement .232**.277**.247**.269**.195* .247** -
8InformationandAnalysis .218**.231**.207**.214**.195* .062 .248** -
9Customer Satisfaction .156* .257**.186* .068 .151*.160* .191* .269** -
10EmployeePerformance .141*.041 .185* .185* .188*.196* .221**.211** .061 -
11ProfitImprovement .121*.204**.157* .185* .180*.220** .267**.069 .288**.204**
12ProcessImprovement .169*.200* .189* .189* .262**.231**.200* .282**.548**.620** .396**
13Market/Financial Performance.140* .200* .097 .157* .105 .047 .267**.185* .285**.306** .090
14OperationalPerformance .169*.101 .234** .127 .203**.235** .285**.044 .417** .105 .
15InnovationImprovement .183*.154* .246**.185* .211*.200*.062 .204**.667**.581** .069

*. Correlation is significant at the 0.05 level (2-tailed), **.


Correlation is significant at the 0.01 level (2-tailed). Source: Field
Survey(2022)
4.4.1 Top Management Commitment (TMC) and Organisational Performance
dimensions
TMC was found to be positively and significantly correlated with CS (r = .156*, p< 0.05); EP (r
= .141*, p< 0.05); PI (r = .121*, p< 0.05); PIm (r = .169*, p< 0.05); M/FP (r = .140*, p< 0.05);
OP (r = .169*, p< 0.05); II (r = .183*, p< 0.05). Furthermore, the results showed the overall
TMC has a positive relationship with organisational performance, with II, PIm, OP, and CS
having the highest correlation values. In general, the finding demonstrated TMC is correlated
with the organisational performance of construction firms, therefore hypothesis (H1) is supported
(H1: Top management commitment positively influences the organisational performance)
developed in this study.
4.4.2 Customer Focus (CF) and Organisational Performance variables
The relationship between CF and CS, EP, PI, PIm, M/FP, OP II was found to be positively and
significantly correlated with CS (r = .257**, p< 0.05); EP (r = .041, p< 0.05); PI (r = .204**, p<
0.05); PIm (r = .200*, p< 0.05); M/FP (r = .200*, p< 0.05); OP (r = .101, p< 0.05); II (r = .154,
p< 0.05).The correlation result suggests that two out of the seven organisational performance
variables are significantly correlated with CF, with two more also significantly correlated and the
rest; EP, OP, and II are a have weak positive correlation and not significant with CF.
Furthermore, the results revealed that CF overall has a positive relationship with organisational
performance, with the highest correlation values in CS, PI, PIm, and M/FP. This indicates that
these four variables are strongly influenced by CF. In general, the finding indicates that the CF is
correlated with organisational performance in construction organisations. Thus, hypothesis (H2)
is supported, relationship (H2: Customer focus positively influences organisational
performance).
4.4.3 Employee/People Management (E/PM) and Organisational Performance variables
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The correlation results for E/PM indicated positive and significant relationship with CS (r =
.186*, p< 0.05); EP (r = .185*, p< 0.05); PI (r = .157*, p< 0.05); PIm (r =.189*, p< 0.05); M/FP
(r = .097, p< 0.05); OP (r = .234**, p< 0.05); II (r = .246**, p< 0.05).The correlation value
suggests that two out of the seven organisational performance variables have higher correlation
values with E/PM, with four having relatively higher correlation values with E/PM, while PIm
has no significant relationship with E/PM. Furthermore, the results showed that E/PM overall has
a positive relationship with organisational performance, with the highest correlation values being
OP and II. This implied that the two variables are strongly correlated with E/PM. Overall, the
finding indicated E/PM is correlated with organisational performance in construction
organisations, and consequently, the hypothesis (H3) is supported (H3: Employee/People
management positively influences organisational performance)
4.4.4 Supplier Quality Management (SQM) and Organisational Performance variables
The correlation values for SQM showed to be positively and significantly related to CS (r = .068,
p< 0.05); EP (r = .185*, p< 0.05); PI (r = .185*, p< 0.05); PIm (r =.189*, p< 0.05); M/FP (r =
.157*, p< 0.05); OP (r = .127, p< 0.05); II (r = .185*, p< 0.05).The results of the correlation
analysis showed that organisational performance dimensions are positively correlated with SQM,
but CS and OP are not significantly correlated with SQM. Furthermore, the result indicate
overall SQM has a positive relationship with organisational performance, with the highest values
in EP, PI, PIm, and II. This means all variables are significantly related to SQM. In general, the
finding indicates that the SQM is related to organisational performance in construction
organisations, thereby, the hypothesis (H4) is supported (H4: Supplier quality management
positively influences organisational performance).
4.4.5 Education/Training (E/T) and Organisational Performance variables
The correlation values for E/T showed were positively and significantly correlated with CS (r =
.151, p< 0.05); EP (r = .188*, p< 0.05); PI (r = .180*, p< 0.05); PIm (r =.262**, p< 0.05); M/FP
(r = .105, p< 0.05); OP (r = .203**, p< 0.05); II (r = .211**, p< 0.05). The finding revealed the
overall E/T has a positive relationship with organisational performance, with the highest
correlation values in PIm, OP, and II. These variables are correlated with E/T, and therefore, the
supported hypothesis (H5) (H5: Education/Training positively influences the organisational
performance) developed in this study.
4.4.6 Process Management (PM) and Organisational Performance variables
The correlation value for PM was found to be positively and significantly correlated with CS (r =
.160*, p< 0.05); EP (r = .196*, p< 0.05); PI (r = .220**, p< 0.05); PIm (r =.231**, p< 0.05);
M/FP (r = .047, p< 0.05); OP (r = .235**, p< 0.05); II (r = .200*, p< 0.05). The finding
indicated organisational performance dimensions are positively correlated with PM, but
market/financial performance is not significantly correlated with PM. Furthermore, the result
demonstrated overall PM has a positive relationship with organisational performance, with the
highest correlation values being PI, PIm, OP, and II. This means the variables are strongly
correlated with PM. In general, the results showed that the PM influences organisational
performance in construction organisations, and therefore, the hypothesis (H6) is supported (H6:
Process management positively influences organisational performance)
4.4.7 Continuous Improvement (CI) and Organisational Performance variables
The correlation value for CI was found to be positively and significantly correlated with CS (r =
.191*, p< 0.05); EP (r = .221**, p< 0.05); PI (r = .267**, p< 0.05); PIm (r =.200*, p< 0.05);
M/FP (r = .267**, p< 0.05); OP (r = .285**, p< 0.05); II (r = .269**, p< 0.05). The results also
revealed that overall CI is significantly positively correlated with organisational performance,
with the highest correlation values in EP, Profit Improvement, PIm, M/FP, OP, and II. In general,
11
the finding indicates that the CI is correlated with organisational performance in construction
organisations. In line with this hypothesis, (H7) is supported (H7: Continuous Improvement is
positively related to organisational performance).
4.4.8 Information and Analysis (IA) and Organisational Performance variables
The correlation value for IA was found to be positively and significantly correlated with CS (r =
.269**, p< 0.05); EP (r = .211**, p< 0.05); PI (r = .069, p< 0.05); PIm (r =.282**, p< 0.05);
M/FP (r = .185*, p< 0.05); OP (r = .268**, p< 0.05); II (r = .204**, p< 0.05). The findings
showed that organisational performance dimensions are positively correlated with IA, but profit
improvement is not significantly related to IA. Furthermore, the results showed that the overall
IA has a positive relationship with organisational performance, with the highest correlation
values in CS, EP, OP, PIm, and II. In general, the findings indicated that IA is correlated with
organisational performance in construction organisations. Thus, hypothesis (H8) is supported
(H8: Information and analysis positively influences organisational performance).
The results of the correlation indicated the extent of relationship between the two groups of
variables but did not identify the most crucial variables for these relationships. To achieve this,
multiple regressions were conducted between TQM practices and OP. This is to determine the
importance of each independent variable and its contribution to the relationship.
4.5 Strategies for Improving Organisational Performance
The results of the mean ranking show the level of influence each TQM practice has on
organisational performance. The practices were evaluated on a scale of 1 to 4, with 1
representing "Highly Insignificant" and 4 representing "Highly Significant." This helps to
provide a clear picture of the impact each practice has on the overall performance of the
organisation.The mapping of the results, as depicted in Figure 4.1, showcases the significance of
each TQM practice. The practices were streamlined and their influence was analyzed, which has
helped to identify the most impactful practices. This information is valuable for organisations as
they can use it to prioritize their TQM efforts and allocate resources more effectively. The results
of this mean ranking are a valuable tool for organisations looking to improve their performance
through TQM. By focusing on the practices that have the greatest impact, organisations can
achieve significant improvements in efficiency, customer satisfaction, and overall performance.
The TQM practices with a ranking of 4 can be considered the cornerstone of any organisation's
efforts to improve performance, while practices with lower rankings can be refined and improved
over time.

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Figure 4.1: Mapping Strategies for Organisational Performance
4.4.1 Strategy 1: Customer satisfaction 4.4.2 Strategy 2: Employee
performance
i. Top management commitment i. Top management
commitment 1
ii. Customer Focus ii Employee/people
management 1
iii. Employee/people management iii. Education/training
iv. Education/training iv. Continuous improvement
v. Process Management 2 v. Process management
2
vi. Continuous improvement vi. Information and analysis
vii. Information and analysis vii. Customer focus
viii. Supplier quality management 3 3
viii. Supplier quality management
4.4.3 Strategy 3: Profit improvement 4.4.4 Strategy 4: Process
improvement
i. Top management commitment i. Top management
commitment
ii. Customer focus ii. Process management
1
iii. Supplier quality management iii. Education/training
1
iv. Process management iv. Continuous improvement
v. Continuous improvement v. Employee/people
management
vi. Employee/people management vi. Supplier quality management
vii. Education/training vii. Information and analysis 2
2
13
viii. Information and analysis viii. Customer focus

4.4.5 Strategy 5: Market Performance 4.4.6 Strategy 6: Operational


performance
i. Top management commitment i. Top management
commitment
ii. Customer focus ii. Education/training
iii. Education/training 1 iii. Process management 1
iv. Continuous improvement iv. Continuous improvement
v. Employee/people management v. Employee/people
management 2
vi. Supplier quality management vi. Supplier quality management
vii. Process management 2 vii. Information and analysis
viii. Information and analysis viii. Customer focus 3

4.4.7 Strategy 7: Innovation improvement


i. Top management commitment
ii. Education/training
iii. Process management 1
iv. Information and analysis
v. Customer focus
vi. Employee/people management 2
vii. Continuous improvement
viii. Supplier quality management 3

5.0 Summary, Conclusion and Recommendation


5.1 Summary
The study found positive and significant relationships between Top Management Commitment
(TMC), Customer Focus (CF), Employee/People Management (E/PM), Supplier Quality
Management (SQM), and Education/Training (E/T) with various dimensions of Organisational
Performance in construction firms. The highest correlation values were found between TMC and
Customer Satisfaction (CS), Process Improvement (PI), Process Implementation (PIm), and
Organisational Performance (OP). CF had the highest correlation values with CS, PI, PIm, and
Market/Financial Performance (M/FP). E/PM had the highest correlation values with OP and
Institutionalisation (II). SQM had the highest correlation values with EP, PI, PIm, and II. E/T had
the highest correlation values with PIm, OP, and II. These findings suggest that all five variables
positively influence the organisational performance in construction firms.
5.2 Conclusion
It can be concluded that there is a significant positive relationship between Top Management
Commitment (TMC), Customer Focus (CF), Employee/People Management (E/PM), Supplier
Quality Management (SQM), and Education/Training (E/T) and Organisational Performance
dimensions in construction firms. This indicates that a construction firm that prioritizes these
factors is likely to have better performance outcomes compared to one that does not. In order to
improve organisational performance in the construction industry, it is recommended that firms
focus on strengthening TMC, CF, E/PM, SQM, and E/T. For example, by investing in employee
training and education, a firm can improve its overall knowledge and skills base, which can lead
to better customer service and improved supplier quality management that will meet
sustainability and dynamic of times. Additionally, by committing to customer focus, a firm can
14
ensure that its services are aligned with customer needs and expectations, which can lead to
improved customer satisfaction and loyalty. By focusing on these key areas, construction firms
can improve their overall performance and competitiveness.
5.0 Recommendation
The study could be replicated in different countries or regions to see if the findings hold up in
different cultural set up and if there are any differences in the impact of the variables on
organisational performance. Longitudinal study: A longitudinal study could be conducted to
determine the dynamic relationship between the variables and organisational performance over
time. This could provide a deeper understanding of the factors that contribute to sustained
performance improvement. Future research could examine additional variables that may
influence the relationship between the variables and organisational performance, such as
technology adoption, market competition, and government regulations.
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