Research Article: 2021 Vol: 20 Issue: 6S
Salman Abu Lehyeh, Amman Arab University
Malek Alharafsheh, Amman Arab University
Rami Hanandeh, Amman Arab University
Murad Abuaddous, Al-balqa Applied University
Hamzeh Al-Hawamdeh, Jerash University
The study aims to explore the impact of TQMP on SP using the BSC methodology in Jordanian universities, through the mediating role of KS. The study adopted a quantitative approach using a survey questionnaire. The study population is represented by all faculty members in the public and private Jordanian universities in the central region, which number (11) universities, and (5,224) faculty members work in these universities. The study data was analyzed using assessment of measurement model and structural model using SmartPLS (3.3.3). The study found that TQMP affects SP using the BSC methodology. The results of the study also indicated that TQMP affect KS, and that KS enhances SP using the BSC methodology. The study also found that KS mediated the relationship total quality management practices and strategic performance. The study recommended that universities should be interested in building a culture that supports KS. Also, universities must implement TQMP and ensure its success due to its role in enhancing SP.
Total Quality Management Practices, Strategic Performance, BSC, Knowledge Sharing, Jordanian Universities.
Strategic performance (SP) represents the end result of the management of organizations, because it shows the effects of doing business, the competitiveness of the organization and its financial health, and through strategic performance can predict the success or failure of the organization in the future (Shah et al., 2020). Strategic performance is a good indicator for testing the effects of total quality management practices (TQMP) (Hassan & Jaaron, 2021). According to Mann and Kehoe (1994) strategic performance is measured by an organization's ability to achieve goals of profitability, sales growth, and market share improvement. However, as a result of the rapid developments in the work environment of companies, the need has emerged to search for a new direction that bridges the gaps and defects of traditional performance measures and to reach new administrative tools that measure and evaluate performance in a way that can sustain the growth and development of companies (Pietrzak, 2021; Alotaibi et al., 2021). These situations have resulted in the emergence of the Balanced Scorecard (BSC), which is a comprehensive and integrated system for measuring the SP of organizations as it takes into account financial and non-financial indicators (Zraqat, 2020a). This model includes five basic dimensions that are the pillars of performance for most organizations, and these dimensions include on the financial dimension, the customer dimension, the internal process dimension, the learning and growth dimension and the environmental dimension (Hussien et al., 2017).
TQMP is one of the most important methods that organizations use to develop work methods, which contribute significantly to achieving the desired goals and developing performance (Anil & Satish, 2016). TQMP also contribute to helping organizations’ departments to understand those matters related to SP and quality in line with the needs of the organization and improving productivity rates, which reflects the importance of TQMP in achieving enhancing the SP of the organization (Sadikoglu & Olcay, 2014). Several studies have found that TQMP can improve an organization's competitive capabilities and improve its performance. Many researchers believe that TQMP have an important relationship with employee satisfaction, product quality, and SP (Fernandes et al., 2017; Soares et al., 2017; Saffar & Obeidat, 2020; Kustono, 2020; Hassan & Jaaron, 2021). TQMP provide employees with opportunities for self-development and learning by contributing to knowledge sharing (Shah et al., 2021). It also contributes to improving work procedures by focusing on teamwork (Hassan & Jaaron, 2021). Forza and Filippini (1998) indicated that TQMP improves effectiveness, flexibility and increases the competitiveness of organizations. In the current era, knowledge has become one of the most prominent factors of production and outweighs the traditional factors of production (Zraqat, 2019), and based on the belief of contemporary institutions in the importance of knowledge as the main source of competitive advantage, survival and continuity in a rapidly changing world, knowledge management and investment in knowledge capital through knowledge dissemination and sharing it between organizations has become a reason for organizational success (Wang & Wang, 2012; Hussien et al., 2021). Knowledge Sharing (KS) can contribute to increasing productivity and achieving added value, through the use of knowledge sharing (Do?an & Do?an, 2020). Accordingly, KS is one of the basic processes of knowledge management whereby performance can be improved by providing useful and important knowledge by benefiting from the experiences of other organizations.
In order to encourage universities in Jordan to take an interest in TQMP, the government has made great efforts. As a result, the number of universities implementing TQMP has increased. One of the requirements of the Jordanian government was for universities to conduct KS, especially with regard to scientific research activities, which prompted universities to make many efforts in this field, but no studies were conducted to investigate the effects of universities’ TQMP on their SP. Hence, this study came with the aim of exploring the impact of TQMP on SP using the BSC methodology in Jordanian universities, through the mediating role of KS. The theoretical importance of this study emerges from the importance of the topic that relates to the extent of the impact of TQMP on SP using the BSC methodology, through the mediating role of KS in Jordanian universities, which leads to achieving some desired results, the most important of which is building a culture in the organization to support the process of implementing the TQM system and its success especially that it is one of the most important administrative entrances to the development of administrative thought, which has proven its efficiency through overcoming the problems faced by the organization related to the quality of services or productivity. The importance of the study in its field aspect lies in the results and recommendations presented by this study that can be used by Jordanian universities, which, if adopted, would contribute to the development and improvement of their SP and distinction in light of the massive environmental changes taking place in the business environment. Thus, it is possible to reach new knowledge regarding the implementation of total quality management in Jordanian universities.
Total Quality Management Practices
The theoretical essence of TQM is linked to the establishment of a system that enhances cooperation and learning in the organization to reach the continuous improvement of the organization’s operations, products and services that it provides, in order to ensure the survival of the company and enhance its performance (Hassan & Jaaron, 2021). TQM is about the ability to manage the organization with all its parts and components to reach the desired excellence (Pham, 2020). TQM is defined as a comprehensive philosophy and methodology for institutions that follow continuous improvement in their work, with the aim of meeting the desires and needs of customers and clients (Lim et al., 2021). TQM is defined as a management methodology that aims to achieve long-term success by encouraging employee reactions, meeting their needs, respecting values and beliefs, and obeying regulations and laws (Li & Houjun, 2013).
TQM seeks to create a distinct culture based on the efforts of all members of the organization to meet the needs and desires of customers at the lowest cost, effort and time (Fernandes et al., 2017), and this indicates that TQM has become of wide importance for organizations (Lim et al., 2021). Several studies have indicated that TQMP can contribute to enhancing performance by reducing costs and increasing profits and productivity (Soares et al., 2017). As well as increasing customer satisfaction (Saffar & Obeiidat, 2020; Kustono, 2020). Achieving a competitive advantage and a high return (Hassan & Jaaron, 2021). Giving the organization a good reputation in the eyes of external clients (Lim et al., 2021). Develop a sense of unity of purpose, team spirit and mutual trust among individuals, in addition to enhancing a sense of belonging in the work environment (Shah et al., 2021).
Several studies have examined the relationship between TQM practices and performance. Hackman and Wageman (1995) pointed out that the focus on teamwork provides an appropriate environment for social interaction and social reinforcement, which enhances the performance of employees, which will be reflected on the SP of the organization. Adam (1994) argues that TQMP improve employee satisfaction and increase customer loyalty. Mann and Kehoe (1994) found that the application of TQM increases the sales of the company. Easton and Jarrell (1998) concluded that the application of TQM improves the financial performance of organizations. Kalogiannidis (2021) found a relationship between TQMP and organizational performance of SMEs companies in Greece. Anggadini et al. (2021) tested the impact of TQM application on SP using the BSC methodology, and concluded that all dimensions of TQM had an impact on SP. In Jordan, Alshourah (2021) reached a high level of TQMP in Jordanian private hospitals. It also found a relationship between TQMP and performance.
Strategic Performance
SP measurement represents a performance evaluation process by measuring all activities in the organization, and the effects affect the short, medium and long term (Zraqat et al., 2021). Choosing a performance measurement method and aligning it with the company's strategy is the first step in judging the company's success (Atkinson et al., 2004). Hussien et al. (2017) argues that there are two types of performance evaluation measures for an organization's financial and non-financial performance. Where the measurement of financial performance depends on accounting indicators, with regard to non-financial performance measuring efficiency, effectiveness and quality.
According to Lynch and Cross (1991), the performance pyramid model should include the measurement of external effectiveness and internal efficiency in the organization. Since the 1990s the BSC has become the core of strategic management (Al-Beshtawi et al., 2014). BSC provides a clear and comprehensive framework for measuring performance across all levels of an organization (Camelleri, 2021; Baird et al., 2021, Zraqat, 2020b). Kaplan and Norton (1996) argue that organizations should develop a strategic management system by aligning financial and non-financial performance. The BSC describes the organization's vision and turns it into goals that can improve the company's performance. The BSC works on improving financial performance by starting with a learning and growth perspective that aims to improve the capabilities of employees in the organization. This leads to improving the quality of internal processes and improving services provided to customers (Aledwan et al., 2017), which increases customer loyalty, and this ultimately leads to improving financial performance indicators (Anggadini et al., 2021). Evaluating the performance of the organization from the perspective of the customer is of great importance, so organizations should seek to obtain new customers while retaining old customers by directing their strategy towards improving quality to meet customer needs (Mio et al., 2021). SP indicators from an internal operations perspective enable an organization to enhance knowledge, share and innovate. Knowledge sharing and innovation activities in the company are carried out by identifying the needs of existing and potential customers, which requires conducting research and product development activities (Dwivedi et al., 2021). TQMP affect all operational processes in the organization (Shafiq et al., 2019). This affects SP from the perspective of the BSC. The BSC contributes to identifying the extent to which TQMP contribute to achieving customer satisfaction and the effectiveness of the implemented procedures (Wheelen, 2002).
Knowledge Sharing
KS refers to the transfer of information from one person or organization to another person or organization (Do?an & Do?an, 2020). KS is related to an organization's ability to explore, retain and exploit knowledge (Lei et al., 2021). KS between organizations is very important in terms of learning new technologies that contribute to improving performance (Tamsah et al., 2020). The more knowledge that the organization possesses, the more this knowledge is used in the activities and operations of the organization (Mahfodh & Obeiidat, 2020) thus, improving performance by increasing the ability to provide high quality services (Al Hbabi & Alomari, 2020). There are many researchers who have indicated a relationship between KS and performance (Holste & Fields, 2010; Huang et al., 2010; Do?an & Do?an, 2020; Laily & Ernawati, 2020). Many studies have also indicated that KS may have an impact in reducing costs, speeding up achievement and enhancing innovation, which leads to enhancing SP (Do?an & Do?an, 2020). Laily and Ernawati (2020) find that when knowledge is shared between organizations with the aim of developing a common goal, a competitive advantage is gained, especially when the knowledge shared is effectively exploited. Tamsah et al. (2020) found that KS indirectly affects performance. Saffar and Obeiidat (2020) conducted a study to explore the impact of TQMP on employee performance in the presence of internal KS among employees as a modified variable, and the study concluded that TQMP had an impact on employee performance through KS. Aljaaidis et al., (2020) concluded that employee effectiveness in educational institutions is positively related to KS.
Study Hypotheses
Based on the previous literature review, the following hypotheses were formulated:
H1: There is a positive effect of TQMP on SP using the BSC methodology in Jordanian universities.
H2: There is a positive effect of TQMP on KS in Jordanian universities.
H3: There is a positive effect of KS on SP using the BSC methodology in Jordanian universities.
H4: KS mediate the relationship between TQMP and SP using the BSC methodology in Jordanian universities.
Using a survey questionnaire, this study took a quantitative approach. All faculty members in Jordan's public and private institutions in the central area, which number 11 universities and employ 5,224 faculty members, are included in the study population (Ministry of Higher Education and Scientific Research, 2020). The survey included 361 academic members from public and private Jordanian universities in the central region as participants. This study employed stratified random sampling as a sampling strategy. The total number of valid responses for further analysis was 347, accounting for 96.1 percent of the total number of disseminated questionnaires. The close-structured questionnaire used in this study was adapted from prior studies in terms of measurements.
This study used PLS-SEM (3.3.3) to evaluate the measurement model and structural model of this study. PLS-SEM can simultaneously evaluate the theoretical structural model and the measurement model. Moreover, PLS-SEM is a perfect technique for complicated models with hierarchical constructs (full disaggregation approach), mediating and moderating effects (Chin, Marcolin & Newsted, 2003). Figure 1 shows measurement model assessment.
The convergent validity and discriminant validity were performed to evaluate the measurement model. As indicated in Table 1, items have loadings between 0.552 to 0.910 with values more than 0.7 for Cronbach's alpha and composite reliability. Regarding average variance extracted, all variables achieved values more than 0.5. Therefore, the model of this study has convergent validity based on proposed of Hair, Sarstedt, Matthews, and Ringle (2016).
Table 1 Convergent Validity |
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Variable | Items | Loadings | Cronbach's Alpha | Composite Reliability | AVE |
TQMP | TQMP1 | 0.759 | 0.938 | 0.947 | 0.602 |
TQMP2 | 0.780 | ||||
TQMP3 | 0.552 | ||||
TQMP4 | 0.882 | ||||
TQMP5 | 0.849 | ||||
TQMP6 | 0.775 | ||||
TQMP7 | 0.843 | ||||
TQMP8 | 0.818 | ||||
TQMP9 | 0.718 | ||||
TQMP10 | 0.813 | ||||
TQMP11 | 0.695 | ||||
TQMP12 | 0.777 | ||||
KS | KS1 | 0.851 | 0.930 | 0.945 | 0.741 |
KS2 | 0.876 | ||||
KS3 | 0.867 | ||||
KS4 | 0.910 | ||||
KS5 | 0.860 | ||||
KS6 | 0.798 | ||||
SP | SP1 | 0.863 | 0.954 | 0.960 | 0.708 |
SP2 | 0.813 | ||||
SP3 | 0.871 | ||||
SP4 | 0.858 | ||||
SP5 | 0.869 | ||||
SP6 | 0.830 | ||||
SP7 | 0.823 | ||||
CP8 | 0.719 | ||||
CP9 | 0.888 | ||||
CP10 | 0.868 |
Regarding discriminant validity, Table 2 shows the HTMT test, where all variables achieved values between 0.769 to 0.818, which falls within the recommended range by Hair, Sarstedt, Matthews & Ringle (2016).
Table 2HTMT Test | |||
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TQMP | KS | SP | |
TQMP | |||
KS | 0.818 | ||
SP | 0.790 | 0.769 |
Using bootstrapping statistic in SmartPLS (3.3.3), the structural model assessment has been tested, as shows in Figure 2.
Then, P-Values and T-Values was created to conclude whether the hypotheses are statistically significant or insignificant. Table 3 shows the hypotheses test.
Table 3 Hypotheses Testing |
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No. | Hypotheses | Path Coefficient | T-Value | P-value | Confidence Interval | Decision | |
95% LL | 95% UL | ||||||
H1 | TQMP→SP | 0.479 | 9.296 | 0.000* | 0.385 | 0.583 | Supported |
H2 | TQMP→KS | 0.778 | 28.026 | 0.000* | 0.714 | 0.824 | Supported |
H3 | KS→SP | 0.362 | 4.995 | 0.000* | 0.216 | 0.497 | Supported |
Note: *: p<0.001 |
As shown in Table 3, total quality management practices have a positive direct effect on strategic performance (Path Coefficient = 0.479; T-Value = 9.296; P-Value = 0.000; 95% LL= 0.385; 95% UL= 0.583), therefore H1 was supported. The essence of TQMP is customer focus, where all employees view customers as the focus of activity and concern, whatever the nature of their jobs, and workers must investigate customer reactions to the services or products offered (Saffar & Obeiidat, 2020; Kustono, 2020Fernandes et al., 2017) Which has a direct impact on improving the services provided to customers, which increases customer loyalty, which is one of the dimensions of BSC, and continuous improvement contributes to the development of performance and production processes, which is measured in the internal operations dimension in the SP using BSC methodology. TQMP also includes the participation of workers, which provides them with the ability to take responsibility and make them ready to deal with solving problems and making appropriate decisions (Adam, 1994), which is reflected in the SP.
In contrast, total quality management practices have a positive direct effect on knowledge sharing (Path Coefficient = 0.778; T-Value = 28.026; P-Value = 0.000; 95% LL= 0.714; 95% UL= 0.824), therefore H2 was supported. KS involves the transfer of information from one organization to another (Do?an & Do?an, 2020). Thus, the organization's ability to explore, retain and exploit knowledge is improved (Lei et al., 2021). Here, TQMP plays an important role in enhancing the organization's ability to benefit from the knowledge obtained (Saffar & Obeiidat, 2020).
Moreover, knowledge sharing has a positive direct effect on strategic performance (Path Coefficient=0.362; T-Value=4.995; P-Value=0.000; 95% LL=0.216; 95% UL=0.497), therefore H3 was supported. This result is consistent with previous literature that showed a relationship between KS and performance (Holste & Fields, 2010; Huang et al., 2010; Do?an & Do?an, 2020; Laily & Ernawati, 2020). KS improves SP in several ways, for example reducing costs and speeding up delivery (Do?an & Do?an, 2020). Enhance employee effectiveness (Aljaaidis et al., 2020). Also, investing in knowledge capital through KS may be a reason for organizational success (Wang & Wang, 2012). KS also contributes to enhancing SP by providing useful and relevant knowledge by benefiting from the experiences of other organizations.
Table 4 Testing The Mediating Effect |
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No. | Hypothesis | Indirect Effect | T-Value | P-value | Confidence Interval | Decision | |
95% LL | 95% UL | ||||||
H4 | TQMP→ KS→SP | 0.281 | 4.978 | 0.000* | 0.169 | 0.388 | Supported |
Note: *: p<0.001 |
Regarding the mediating effect of knowledge sharing, as shown in Table 4, knowledge sharing mediated the relationship total quality management practices and strategic performance (Indirect Effect = 0.281; T-Value = 4.978; P-Value = 0.000; 95% LL= 0.169; 95% UL= 0.388), therefore H4 was supported. This result is consistent with the management literature, as KS ensures access to information and knowledge that may have an impact in reducing costs, speeding up delivery and enhancing innovation, which leads to enhancing SP in organizations that adopt TQMP (Do?an & Do?an, 2020). KS enables the organization's management to formulate the strategy and set applicable and measurable goals, which is the essence of the BSC as one of the SP measures. The BSC works on improving financial performance by starting with a learning and growth perspective that aims to improve the capabilities of employees in the organization. This leads to improving the quality of internal processes and improving services provided to customers, which increases customer loyalty, and this ultimately leads to improving financial performance indicators. All elements of the BSC need the availability of knowledge in the organization, which is obtained through KS with other organizations. Knowledge enhancement and sharing is one of the indicators of SP measurement from the perspective of internal operations in the BSC (Dwivedi et al., 2021).
The study aims to explore the impact of TQMP on SP using the BSC methodology in Jordanian universities, through the mediating role of KS. The study adopted a quantitative approach using a survey questionnaire. The study population is represented by all faculty members in the public and private Jordanian universities in the central region, which number (11) universities, and (5,224) faculty members work in these universities. The current study used stratified random sampling as a strategy for sampling technique. Regarding the measurements of this study, the close-structured questionnaire was adopted from previous studies. Data analysis of this study included two main aspects are assessment of measurement model and structural model using SmartPLS (3.3.3). Assessment of measurement model included convergent validity and discriminant validity. The study found that TQMP affects SP using the BSC methodology. This finding supports previous literature (Saffar & Obeiidat, 2020; Kustono, 2020Fernandes et al., 2017), as the TQMP are concerned with customer focus, improvement of previous processes and employee development. And their education, which constitutes the dimensions of strategic performance measurement using the BSC methodology, and all TQMP will ultimately have an impact on financial performance. The results of the study also indicated that TQMP affect KS, and that KS enhances SP using the BSC methodology. KS involves transferring information from one organization to another (Do?an & Do?an, 2020). Thus, the organization's ability to explore, retain and exploit knowledge improves, which enhances performance (Lei et al., 2021).
The study also found that KS mediated the relationship total quality management practices and strategic performance. This result is consistent with the management literature, as KS may have an impact in reducing costs, speeding up achievement and enhancing innovation, which leads to enhancing SP in organizations that adopt TQMP (Do?an & Do?an, 2020). KS enables the organization's management to formulate the strategy and set viable and measurable goals, which is the core of the BSC. KS contributes to realizing the learning and growth dimension that aims to improve the capabilities of employees in the organization. This leads to improving the quality of internal processes and improving services provided to customers. All elements of the BSC need the availability of knowledge in the organization, which is obtained through KS with other organizations. Knowledge enhancement and sharing is one of the indicators of strategic performance measurement from the perspective of internal operations in the BSC (Dwivedi et al., 2021).
The study recommends that universities should pay attention to building a culture that supports the KS. Also, universities should apply the TQMP and ensure its success especially that it is one of the most important administrative entrances for the development of administrative thought, which has proven its efficiency by overcoming the problems faced by the organization related to the quality of services or productivity. The study also recommends enhancing SP by defining clear measures of performance such as BSC. The study also recommends conducting more studies on sectors other than the educational sector.