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Achieving Sustainable Performance Through TQM and Market Orientation: A Proposed Framework for Empirical Investigations - Page 14

Proposed research hypotheses are:

General hypotheses:

P1: Firms with customer-focused TQM practices (IV) tend to display high degree of market orientation (DV).

P2: Firms with operation-focused TQM practices (IV) tend to display low degree of market orientation (DV).

P3: Firms with customer focused TQM practices tend to display higher degree of market orientation than firms with operation focused TQM practices.

P4: Firms with low market orientation (IV) that use TQM but operation focused (MV) will achieve medium to low sustainable performance (DV).

MBQ orientation contents and performance:

P5: Firms with a high degree of market orientation (MV) that use TQM to generate market advantage (IV) will realise benefits of growth in revenues and achieve high sustainable performance (DV).

P6: Firms with a high degree of market orientation (MV) that use TQM to improve design optimisation (IV) will realise benefits of reduction in costs and achieve high sustainable performance (DV).

P7: Firms with a high degree of market orientation (MV) that use TQM to improve process optimisation (IV) will realise benefits of reduction in costs and achieve high sustainable performance (DV).

P8: Firms with high degree of market orientation (MV) that use TQM to improve product reliability (IV) or (pursuing continuous improvement) will realise benefits of growth in revenues and achieve high sustainable performance (DV).

P9: Firms with low market orientation (MV) that use TQM to improve process optimisation (IV) will realise benefits of reduction in costs and achieve medium sustainable performance (DV).

P10: Firms with low degree of market orientation (MV) that use TQM to improve product reliability (IV) will realise benefits of growth in revenues and achieve medium sustainable performance (DV).

MBQ orientation processes and sustainable performance

P 11: The higher the interfunctional co-ordination (IV) the greater the TQM effectiveness (DV) . (TQM effectiveness is positively related to interfunctional co-ordination). and the higher the interfunctional co-ordination (IV), the higher the market orientation (DV) (Degree of market orientation is positively related to interfunctional co-ordination).

P12: TQM companies that apply customer-oriented tools (IV) such as QFD, competitive benchmarking tend to be able to satisfy customer needs better than competitors hence are more market-oriented and achieve better growth and sustainable performance (DV).

P13: TQM companies that established customer relationships (IV) programmes has higher retained customers and achieved market growth and sustainable performance (DV).

P14: Organisational climate determines the top management decision making style which control structure, system, corporate culture, and values, moderate the TQM and market orientation effectiveness and hence sustainable performance relationship. The better the organisational climate (IV) the higher the sustainable performance (DV)

P15: The higher the innovation orientation (IV) the higher the TQM effectiveness and market orientation thus the higher the sustainable performance (DV).

P16: Customer focused TQM and sustainable performance relationship is stronger in the high environmental uncertainty.

P17: Operation focused TQM and sustainable performance relationship is stronger in the low environmental uncertainty.

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