Research Article: 2020 Vol: 23 Issue: 1S
Sultan Al-Shourah, Zarqa University
Abdullah Ahmad Al-Shourah, The World Islamic University for Sciences & Education (WISE)
Citation Information: Al-Shourah, S., & Al-Shourah, A. A. (2020). An examination between total quality management and hotel financial performance: evidence from Jordanian international hotels. Journal of Management Information and Decision Sciences, 23(S1), 418-431.
The objective of this study is to investigate the relationship between total quality management (TQM) elements and it`s multi-dimensions "Top Management Commitment, Supplier Quality Management, Quality Planning, Quality Data, and Reporting and Customer focus" on financial performance in five stars international Jordanian hotels. Therefore, 59 questionnaires were received from middle and top management deportments, the quality, operation and financial managers of five-star international hotels in Jordan; regression and correlation analysis was used to test the relationship study aim. For results of the study, have a positive and significant relationship between five dimensions of TQM "Top Management Commitment, Supplier Quality Management, Quality Planning, Quality Data, and Reporting and Customer focus" on financial performance as measured (Market share, Return on capital). Past research concerted on the manufacturing sector and not the hotel business in Jordan, so this study came to bridge the Literature Review gab and Meaningful implications are made that building a reputation and effective TQM implementations hotels are vital to face high competition, increase improve quality, and improve financial performance in five-star international hotels in the Jordan sector.
Total Quality Management (TQM); Hotels Financial Performance; Hotels; Jordan.
In recent years, great changes have emerged in the hotel industry in terms of the emergence of new competitors and changes in demand (Han et al., 2019). The following are the main factors of the changes affecting the hotel industry as follows: (i) A change in lifestyles: this has led to the emergence of specialized hotels in the countryside and health service services. (ii) The increasing use of IT communications, which leads to great transparency for clients in terms of accessing information related to hotel offers, personal opinions from previous clients, prices, etc. (iii) globalization and economic development that allows hotels to win new customers and increase competitiveness (Hernández-Perlines et al., 2019, Franco et al., 2020).Under this situation, one possible effective way to revitalize the sector is by forcing the many hotels to view TQM as a key strategy Factor (Tarí et al., 2010) and a fundamental driver of productivity and performance (O’Neill et al., 2016). Many studies have confirmed that TQM is a factor that provides a competitive advantage or an element of differentiation, an increase in productivity and an improvement in financial performance, which reflects positively on decision-making and attracting new customers (Parvadavardini et al., 2016; Amin et al., 2017; Franco et al., 2020).
Prier studies point to an apparent lack of a suitable and applicable TQM framework in the hospitality industry (Parvadavardini et al., 2016; Sin & Jusoh, 2019; Hussain & Khan, 2020). Therefore, there is an urgent need situation to assess TQM in the hospitality sector and especially to help hotels implement the most appropriate and exemplary TQM practices in their field to ensure financial growth. More evidence, a total 88 TQM studies published from (2011-2018) various sources such as ELSEVIER, Emerald, ProQuest, ResearchGate, ScienceDirect and Deepdyve study by Sin and Jusoh (2019) found that only 9.09% of the total 88 studies are on hotel sector and these studies confirm that lack of appropriate model of TQM, particularly in hotel sector. In the seam time, a study of systematic literature review by Hussain and Khan, (2020) revealed that the implementation of TQM has been widely accepted in the manufacturing industries, but service industry remains limited in TQM implementation, particularly the hospitality sector. A study re-examines empirical literature by Chaudary et al. (2015) confirm that there is lack research of (TQM) on firms’ financial performance. And, there is significant room for future research to explore the impact of TQM on financial performance. A few empirical studies using financial performance measures have been done, and have shown that TQM firms have better financial performance than other firms. Thus, this study is an examination the TQM dimensions and financial performance in the hotel industry.
This study focuses on the Jordan hotel industry, the tourism sector in Jordan is an essential part of the economy of the Kingdom of Jordan; this sector has great potential for growth and prosperity, but it witnesses global competition not only at the regional level but also among the countries of the world as a whole. The service sector of Jordanian is contributing 61.4% of the GDP and Jordan's tourism income increased until the end of April 2019 to 1.236 million dinars, or 6.1% compared to the same period last year. The tourism sector contributes 14% to the GDP of the Jordanian economy. The number of tourists arriving in Jordan until the end of 2018 increased by 4922169 tourists, compared to 4565158 tourists in 2017, an increase of about 7 percent. (Plecher, 2020). Therefore, the government is constantly seeking to develop the tourism sector into a sector that meets the highest international standards to attract visitors and extend their stay. Therefore, the Ministry of Tourism is reviewing the classification of hotels in cooperation with the USAID-funded Jordan Tourism Development Project to implement the best international standards and to ensure the quality of hospitality to match the needs and expectations of tourists (MTAJ, 2019).
Previous studies on TQM applications in manufacturing and service organizations confirmed that they are intended for manufacturing organizations, that is, in service organizations, which are the least (Al-Rawashda & Al-Hammoud, 2019). Especially the hotel industry (Claver-Cortis et al., 2008; Al-Rawashda & Al-Hammoud, 2019). Moreover, although a few studies have TQM applications in Jordanian hotels (Al-Sabi et al., 2017). The relationship between TQM and some factors of TQM has not been extensively tested in the Jordanian hotel industry literature. According to Rawashdeh & Homud (2019) more research is needed to understand whether implementing TQM provides a success factor in financial performance. Therefore, more studies are needed on such problems to fill this gap in the practical literature on the Jordanian hotel industry.
Since the early 1990s, TQM has become the preferred management philosophy among organizations. And therefore TQM has become an essential management philosophy used for improving quality, productivity, and improve performance in organizations overall (Karia & Asaari, 2006). An empirical study carried out by Dahlgaard-Park et al. (2012) argued that 79 percent of participants claim their quality management system has been introduced successfully in the Basque region in Spain. The study also by Khan et al. (2020) showed that a significant number of hotels appliance think that such systems have resulted in an increase in profit. A cording to Joiner (2007) TQM has developed principally because of the changes that have appeared in the global economy and the demands of market forces. Therefore, Implementing TQM is an essential process for solving organizational problems and improving performance and efficiency in organizations as well as hotels (Joiner, 2007).
Past studies about TQM, it is clear that extensively accepted and successful application TQM to improve organizational performance in about all kinds of Manufacturing and service organizations and different environments (Parvadavardini et al., 2016; Amin et al., 2017; Bazazo et al., 2017; Franco et al., 2020). And evidence that the hotels benefited the TQM in gaining organizational hotel performance through effective operations, financial results, customer satisfaction, and employee satisfaction. A cording to Al-Sabi et al. (2017) numerous previous studies have been written on the TQM-performance in the context of Western economies. However, in general, few studies were conducted in the Middle East, and few were conducted in Jordan in particular. Besides, previous research focused on the manufacturing sector, not the hotel sector, in measuring TQM dimensions of the financial performance (Al-Ababneh & Lockwood, 2012). Hence, Based discussed above there is a need to examine TQM dimensions and hotel financial performance in Jordan in particular. Consequently, it’s appearing the lack of research addressing the TQM on financial performance in the hotel industry in Jordan is a problem. Thus, based on the study background, statement of the problem and to achieve this study objective, the study includes the underlying question:
What is the relationship between the dimensions of total quality management and financial performance in five-star Jordanian international hotels?
Total Quality Management
Total quality management correspondingly with quality researchers and scholars have provided many definitions of TQM (Migdadi & Elzzqaibeh, 2018). However, different researchers and professionals can see TQM as different things. There are different meanings of TQM in past studies. Although definitions or meanings disagreement, all of those fundamentals that make up TQM theoretical-practical frame, without management system applied in the organization on which it is based could not be called TQM (Al-Ababneh & Lockwood, 2012). A cording to El Manzani et al. (2019), TQM “as a comprehensive approach to improving competitiveness, effectiveness, and flexibility through planning, organizing, and understanding each activity, and involving each individual at each level. It is useful in all types of firms". Other researchers suggest a comprehensive definition of TQM as “a management philosophy which involves a set of principles, techniques, and tools that are used for continuously improving the quality of processes, products, services, and people by involving all employees to achieve superior customer satisfaction” (Al-Ababneh, 2011).
The implementation of TQM in the hospitality industry started when the American hospitality industry implemented quality assurance systems and achieved excellent outcomes (Walker & Salameh, 1990). However, there are some studies contacted in Jordanian hotels, for example, Bazazo et al. (2017), found that the TQM has no significant impact on hotel performance from different employees in Jordanian hotels. Al-Sabi et al. (2017) distributed 400 questionnaires in twelve five-star Jordanian hotels with a 63.5 response rate. The result revealed that the TQM implementation in five-star Jordanian hotels was applied effectively and a positive impact of service recovery. Another study by Al-Ababneh (2015) distributed 345 forms to managers working in seventeen Jordanian hotels in the 4 & 5 star categories. The result confirmed that the majority of "companies that adopted TQM" were five-star international hotels, managed by a management contract, while "companies that relied on low TQM" were independent 4 star hotels, run by their owner. He said that this means that the Jordanian international hotel chain follows specific quality standards through TOM practices at a high level, to meet customers' needs and expectations.
Several studies argued that very few studies have been conducted to indicate the critical success factors (CSFs) of TQM in the hotel industry (Parvadavardini et al., 2016; Amin et al., 2017; Bazazo et al., 2017; Franco et al., 2020). For example, Cheung (2006) confirmed that four CSFs “top management commitment and leadership, customer focus, employee involvement and continuous improvement” of TQM in the hotel industry. Another study has been done by Shahbazipour (2007) which investigates the 7 Barriers such as CSFs for successful total quality management applied in the hotel industry, especially in (3, 4 & 5) hotels of star. And, these were the variables "leadership, policy and strategy, information and analysis, customer focus, human resource management, supplier and partnership management, and operations management". Similarly, "Leadership, employee fulfillment, internal/external cooperation, customer focus, process management, learning, and continuous improvement" are CSFs of TQM-adopting hotels; it was studying by Wang et al. (2011). However, a disagreement can be observed between the studies in terms of what are the most important success factors for the dimensions of TQM (Cheung, 2006; Claver-Cortés et al., 2008; Wang & Chen, 2012). Based literature of the special hotels industry, this is study selected five diminutions of TQM that is The most frequent in previous studies, namely: top management commitment, supplier quality management, quality planning, quality data and reporting, and customer focus(Claver-Cortés et al., 2008; Wang & Chen, 2012; Al-Ababneh, 2015; Al-Sabi et al., 2017; Amin et al., 2017).
Hotel Financial Performance
There is no definitive assessment framework for performance measurement. Performance is referred to as "as being about doing the work, as well as being about the results achieved" (Parvadavardini et al., 2016; Alshourah, 2019). It can be defined as "the outcomes of work because they provide the strongest linkage to the strategic goals of an organization, customer satisfaction and economic contribution" (Sin et al., 2005). Previous literature, business outcome has been mostly considered from two financial performance approaches (subjective and objective measures). The literature suggests the use of financial metrics (such as the return of investment, sales profit, and market share) for performance assessment. Because the financial performance measures are vital to reveal the ability of a hotel to utilize its resources effectively and efficiently to achieve predetermined objectives (Alshourah, 2012).
The net effects or benefits of applying TQM to hotel performance have not been adequately addressed by the research (Al Rawashdeh & Homud, 2019, El Manzani et al., 2019). Several empirical studies appeared that the success of TQM in hotels brings benefits in the form of improving hotel performance (Patiar et al., 2012; El Manzani et al., 2019). Furthermore, Past studies an examination Between TQM and hotel financial performance, the results that have positive relation (Al-Sabi et al., 2017), but some studies report a negative relation (Patiar et al., 2012). A sample of 301 3-5 star Spanish hotels to test a regression analysis of the TQM-performance as market share gain, sales growth, profit by Claver-Cortés et al. (2008), found that TQM elements significantly have higher performances. TQM does not seem to influence all the performance variables measured. They clarify that hotels that place a stronger commitment to TQM develop more advanced management systems and achieve higher levels of performance. Therefore, hoteliers should invest in TQM, as this may help them become more competitive. Tarí et al. (2015) conducted a systematic literature review of quantitative empirical studies that analyzed the relationship between the TOM dimensions and the hotel's financial performance, based on research in the Science Direct, ABI/Inform, and Emerald databases. The results show that, overall, the TQM dimensions have positive impacts on financial performance in the hotel industry.
The measures of organizational performance including financial and non-financial has discussed in the hotel by (Patiar et al., 2012, Pham, 2020), negative found between TQM and financial performance as measured (Market share, Return on investment) a sample of the Australian and Indian hotels. And proposing that the hotel adopt TQM achieves to meet satisfying customers’ needs and enhance. Similar study, using multiple regressions, Duarte et al. (2011) survey 1200 Brazilian firms and conclude that TQM (ISO certification) has a weak negative relationship with financial performance (profitability and growth). Previous literature comments that the lack of empirical studies investigations that satisfy the description and exploration of how to determine the financial impact of TQM success may be the biggest challenge to the practical development of TQM. Therefore, this study is taken into consideration in this study when discussing financial performance.
Based on the given theories, a conceptual framework is built to Base on the given theory resource-based view (RBV) and literature review. The research has been proposed to examine the influence of five elements TQM toward the hotel's financial performance at Five Stats hotels. The conceptual framework consists of five variables, in which independent variables are "Top Management Commitment, Supplier Quality Management, Quality Planning, Quality Data, and Reporting and Customer Focus" while the dependent variable is hotel financial performance five-star international hotels in Jordan. Therefore, the Hypothesis main of this study is:
H0: TQM positively affects five-star international hotel financial performance
H1: Top Management Commitment affects five-star international hotel financial performance
H2: Supplier Quality Management affects five-star international hotel financial performance
H3: Quality Planning affects five-star international hotel financial performance
H4: Quality Data and Reporting affects five-star international hotel financial performance
H5: Customer Focus affects five-star international hotel financial performance
This study used a cross-sectional survey methodology (Sekaran, 2010). A personal survey using a questionnaire Data were collected. The study population is the total of the 37 five-star hotels that implement TQM implementation in Jordan (MTAJ, 2019). A cording to Al-Ababneh (2015) confirmed that the five-star international chain hotels were TQM applied and managed by management contract. 59 questionnaires were received from middle and top management deportments, the quality, operation and financial managers of five-star international hotels in Jordan. The reason for choosing the five stars hotels was that TQM is extremely important in the hotel sector, particularly in hotels owing to the importance of customer relations involved. To collect the data, 80 questionnaires were distributed to five stars of international hotels in Jordan using a random sample. Of these, 62 were returned, 3 of who were expelled because they were incomplete using random convenience sampling technique. As a result, a total of 59 completed questionnaires were used for experimental analysis using SPSS, giving a response rate of 60%. However, However, the correlation, linear regression, and the descriptive analysis used in the analysis section.
The measurement of TQM including five diminutions from works (Alshourah, 2015; Al-Sabi et al., 2017; Mehralian et al., 2017; Keinan & Karugu. 2018; Omar et al., 2018; El Manzani et al., 2019).The 17 items that were certified for total quality management were measured on a six-point Likert scale where 1 = not at all and 6 =very large extent from work (Patiar et al., 2012). Hotel financial performance is related to its major competitors concerning the following two items: (market share, return on investment (ROI)) (Alshourah et al., 2015, Chaudary et al., 2015). Responses are made on a six-point scale ranging from “1” far below expectation “2‟ below expectation “3” as expected “4” above expectation “5” far above expectation major competitors (Chaudary et al., 2015; Alshourah et al., 2019).
Managerial Respondent's Profile
Table 1 shows that the majority of the respondents (74.5) were males versus 25.4% of females. The age groups (41-50) and (50+) show a reason for more than two-thirds of the sample (69.4%). However, this percent is almost equal to the current position of the same groups. Regarding the division of participants according to educational level, the Table 1 shows that the majority of respondents are 52.5% Bachelor’s degree, 23.7% Master’s. Furthermore, for less and more than five years’ experience the score was 16.9% and frequently 83%.
Table 1: Managerial Respondent's Profile | ||
Type | Frequency | Percentage (%) |
Male | 44 | 74.5% |
Female | 15 | 25.4% |
20-30 | 6 | 1% |
31-40 | 12 | 20.3% |
41-50 | 17 | 28.8% |
50+ | 24 | 40.6% |
Leadership | 25 | 42% |
Middle Management | 20 | 33.8% |
Senior Staff | 14 | 23% |
Less than five years | 10 | 16.9% |
More than five years | 49 | 83% |
Diploma | 8 | 1.3% |
Bachelor | 31 | 52.5% |
Master | 14 | 23.7% |
BHD | 6 | 0.1% |
Reliability of Study
For the purposes of data analysis and hypothesis testing, several statistical tools and methods have been used with the help of SPSS, version 23. Reliability is defined as the extent to which measurements of the particular tests are repeatable (Hair et al., 2010). According to Hair et al. (2010) the coefficient of 0.70 is desirable. However, the reliabilities of the TQM and financial dimensions are within the acceptable range, which is above 0.75, as shown Table 2.
Table 2: Reliability, Mean and SD for Financial Performance and TQM Diminutions | ||||
SD | Mean | Alpha (ά) | Item No | Variables |
0.90 | 4.21 | 0.90 | 4 | Hotels Financial Performance |
0.73 | 3.99 | 0.91 | 5 | Top Management Commitment |
0.77 | 4.31 | 0.89 | 4 | Supplier Management |
0.68 | 4.43 | 0.77 | 4 | Planning of Quality |
0.69 | 4.41 | 0.85 | 3 | Quality Data and Reporting |
0.81 | 3.99 | 0.86 | 3 | Customer Focus |
Correlation
According to Cohen (1988), if the r score is between 0.35 and 0.50 then the relationship between the two factors is traded as a mean correlation. Also if the r score is above 0.50 then the correlation between the two factors is strong. As shown in Table 3, all factor values range from 0.31 to 0.66. Therefore, the aggregate correlation values of the factors show the correlation coefficients with significant values greater than 0.31.
Table 3: Pearson Correlations of Study Variables | ||||||
FP | TMC | SQM | QP | QDR | CF | |
FP | 1.0 | |||||
TMC | 0.39(**) | 1.0 | ||||
SQM | 0.46(**) | 0.64(**) | 1.0 | |||
QP | 0.35(**) | 0.56(**) | 0.66(**) | 1.0 | ||
QDR | 0.31(**) | 0.46(**) | 0.62(**) | 0.44(**) | 1.0 | |
CF | 0.37(*) | 0.49(**) | 0.50(**) | 0.51(**) | 0.51(**) | 1.0 |
Multiple Regression Analysis
To answer the research question on what is the relationship between TQM dimensions and performance at five-star Jordanian International Hotels? Regression analysis was undertaken on the foretell TQM dimensions and hotels financial performance. The interpretation of the regression analysis is based on the standardized coefficient beta (β) and R2 which provide evidence on whether to support or not to support the hypotheses stated in the study (Table 4).
Table 4: Multiple Regression Analysis TQM Dominations (N = 59) | |||||||
Model | Unstandardized Coefficients | Standardized Coefficients | T | Sig | Colinearity Statistics | ||
B | Std. Error | Beta | Tolerance | VIF | |||
1 (constant) | 275 | 304 | 905 | 368 | |||
Top Management Commitment | 0.160 | 0.060 | 0.211 | 2.682 | 0.009 | 0.521 | 1.920 |
Supplier Quality Management | 396 | 094 | 0.434 | 4.234 | 0.000 | 0.307 | 3.252 |
Quality Planning | 0.047 | 0.098 | 0.243 | 0.481 | 0.032 | 0.371 | 2.694 |
Quality Data and Reporting | 159 | 0.092 | 0.146 | 1.717 | 0.000 | 0.450 | 2.222 |
Customer Focus | 0.328 | 080 | 0.392 | 4.091 | 0.000 | 0.352 | 2.842 |
From ANOVA confirms that the linkage between financial performance and TQM damnations is significant "F = 16.983; Sig = 0.00" (Table 5). The obtained "R2"appear that the influencing factors account for 72% of the variance in the hotel's financial performance as a return on investment (ROI), market share. Among all the dimensions included in the regression equation, five appeared as financial performance for the significant forecast. These are "Top Management Commitment, Supplier Quality Management, Quality Planning, Data Quality and Reporting, and customer focus". Depending on the results, the hypotheses H1, H2, H3, H4, and H5 are supported.
Table 5: Anova (b) | ||||||
Model | Sum of Squares | Df | Mean Square | F | Sig. | |
1 | Regression | 9.532 | 1 | 9.532 | 16.983 | 0.000(a) |
Residual | 53.568 | 96 | 0.558 | |||
Total | 63.100 | 97 |
In other word, the Top management commitment, supplier quality management, quality planning, data quality, reporting, and customer focus are positively related to hotels' financial performance.
To examine which TQM damnations have the most influence on 5-stars hotel financial performance, Table 4 shows the β values that were used. Based on the β values of the five significant factors TQM, the expected damnations that have the largest impact on hotels' financial performance are arranged as follows supplier quality management (β = 0.434), followed by customer focus (β = 0.392), quality planning (β = 0.243), top management commitment (β = 0.211) and quality data and reporting (β = 0.146).
For regression of the independent variables on the dimensions of TQM, the tolerance values and the condition index for all independent variables are examined to discover linear multiplicity. The disparity should be close to 1.00 to indicate little or no linear multiplicity (Pallant, 2007). A cording to Hare et al. (2010) indicates a cut-off value of 10.0 as an acceptable VIF. From the tolerance and VIF values shown in Table 4, the output indicates that there is no multi-line effect between the independent variables on the dependent variables.
This research indicates that five TQM dimensions have a positive and significant impact on the financial performance of five-star Jordanian international hotels. The hoteliers' should continue in a process of continuous improvement in the implementation of TQM and the overall strategy in five-star Jordanian international hotels. This result is consonance with those received by Al-Sabi et al. (2017) in the studies of the hospitality and hotel industry. The success of applying the principles of TQM necessarily depends on the level of conviction and commitment of the top management first, and secondly its support for the comprehensive quality management approach, and the establishment of more units concerned with quality management, and their contact with the higher management as a link with other administrative levels, and in order to ensure the implementation Plans and programs of TQM better. However, the following illustrates the discovery of each influencing factor.
Top Management Commitment
The meaning includes this factor which" the acceptance of quality responsibility by managers and this includes comprehensive quality planning, quality schedule, evaluation quality and participation in quality improvement efforts" (Al Rawashdeh & Al Homud, 2019). However, this study found that a positive between top management commitment and financial performance in the 5 star hotels Jordanian. In another word, the outcomes of this research confirmed the essential role of top management commitment in influential to achieve and raising financial performance. The results of the study agree with Cheung (2006), which confirmed that the commitment of top management to the primary role in the application of quality elements leads to improving financial performance in the hotel industry.
Supplier Management
The element included in this concept is "supplier quality control, suppliers participating in product development, and purchasing policy emphasizing quality rather than price" (El Manzani et al., 2019; Zhang et al., 2000). This research showed that a positive between supplier management and financial performance in the 5 star hotels Jordanian. Same result, Al-Sabi et al. (2017) argued that this factor is an essential component of hotels needed for financial performance; a hotel that is highly targeted to suppliers will be able to better design its operations, which reflects positively on the financial performance.
Quality Planning
Refer to which the Managers use TQM methods “i.e. practices, tools and techniques) such as quality mission/vision, quality policy, quality goals, business plan, communication strategies, strategy development and deployment, control and improve of plans”. This study however found a significant link between quality planning and hotel performance. In other words, quality planning is related to continuous improvement of financial performance in the 5 star hotels Jordanian. This finding is harmonious with a previous study by Akgün et al. (2014) who found that quality planning significantly influences the firm financial performance.
Quality Data and Reporting
The degree to how helpful it is for increasing the ability of the hotel to target customer for long term with more probability of getting interested about the hotel’s offerings, communicate varied messages to different customer, and insights into product distribution channel. In the present study, the researcher gets a significant relevance between data quality and reporting and financial performance in the 5-star Jordanian hotels. In other words, data quality and reporting could predict continuous improvement of financial performance in the 5-star Jordanian hotels. This resulting in advocate previous researches such as those done by Pham, (2020) who discussed the relationship between the storage and information data quality and reporting and performance in the in Vietnamese enterprises.
Customer Focus
Includes "different tools such as customer satisfaction surveys, analysis of customer complaints and compliments, competitor analysis, trade surveys, and trials that are working closely with key customers and market investigations" (Alshourah, 2019). This study found that a positive linkage customer focus and financial performance in the 5-star Jordanian hotels. In another word, customer focus could predict continuous enhancement of financial performance in the 5-star Jordanian hotels. This finding is harmonious with past research by Becker et al. (2009) who found that customer focus significantly influences financial performance in the hotel industry.
The current research contributes to the theoretical foundations of studying the elements of total quality management and measuring the financial performance of hotels. The results of the study contribute to the empirical knowledge towards identifying and clarifying the elements of total quality management and their impact on the financial performance of Jordanian hotels. Hussain and Khan (2020) indicate that there is still no integrated conceptual framework to direct hotels, and few studies have revealed the impact of TQM elements on financial performance.
The study also emphasizes the importance of “senior management commitment, supplier quality management, quality planning, quality data, reporting, and customer focus” in the impact and necessary to drive hotels' financial performance. Researchers who studied the elements of TQM and financial performance focused mainly on the United States of America, European economies and Japan (Parvadavardini et al., 2016; Sin & Jusoh, 2019; Hussain & Khan, 2020). The current study has proven the validity of these factors in the Jordanian hotel industry. Therefore, it appears that some of the results obtained in the West can also be generalized to the Asian and Middle Eastern settings, thus lending credibility to efforts to test Western results using local samples.
From a practical perspective, the results of this study are important for the development of the hotel industry in the region, as little research has been done before (Sin & Jusoh, 2019). As part of the tourism industry, the hotel sector has been assigned an important and continuing role to assist the Jordanian government in realizing the economic potential of this industry. This sector has shown a marked improvement in its performance in recent years (Hussain & Khan, 2020). It also continues to evolve in an increasingly dynamic business environment. The focus of TQM is on clients with the purpose of retaining them, increasing their loyalty and thus improving the profitability of the hotel, and this research has also contributed to the point that it is important for managers to pay special attention to the quality management practices of the hotel. Employees are required to take appropriate actions when dealing with customer related issues, so that service quality is not hampered. Thus, increase the financial performance of Jordanian hotels.
Admittedly, this result is unique and this is due to the fact that this research suggests that the study be repeated in additional settings to determine whether similar results will be obtained outside five-star hotels in Jordanian hotels. In the future, the moderate effect can be explored.
This research intended at the impact of five dimensions of TQM on the financial performance of the five-star international Jordanian hotels. Although the dimensions of TQM and hotel performance were experimentally investigated on other dimensions in a different context such as service provision, service quality, and many other matters in a context of different. A few researches have recognized the potential impact of the linkage between TQM dimensions and financial hotel performance in five stars international Jordanian hotels. Thus, this research attempted to bridge this gap in the literature by studying the effect of implementing TQM on hotel performance from the perspective of managers who works in an international five-star hotel in Jordan. In addition, the survey was conducted in 2019 and the situation may change due to COVID-19 cries in Jordan. Hence, the result should be taken with caution.
The authors are grateful to the Zarqa University, Jordan for the full financial support granted to this research project.