Total quality management and the organisational performance: The mediating role of market orientation

Abstract

The main objective of this study was to investigate the mediating link of market orientation (MO) on the relationship between total quality management (TQM) and organisational performance (OP). To achieve the objective of this study, a survey questionnaire was distributed to 350 people of managerial positions in Libyan banks’ branches. Out of the distributed number, 230 questionnaires were completed and returned. The data collected were then analysed using structural equation modelling partial least squares (SEM-PLS) approach to confirm the validity and reliability of the measures before undertaking hypotheses testing analysis. The results of this study revealed that TQM has a positive and significant effect on market orientation and organisational performance. More importantly, the results have also confirmed the mediating effect of market orientation between TQM and organisational performance. This might explain better the competitive power of companies adopting TQM strategy to outperform their rivals in the market.