Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Role of Total Quality Management in the Face of Challenges: A Study in Lafarge-Jordan

Author(s): Asaad Hameed Al-Ali, Ayman Abu-Rumman

This paper presents the findings of a study investigating how the application of Total Quality Management (TQM) can help organizations to tackle the different business challenges brought about as a consequence of the recent global financial crisis including those associated with planning, cost reduction and increasing competition. The study focuses on the experiences of employees based within the leading concrete and cement producer ‘Lafarge-Jordan’. Using a qualitative approach and the use of convenience sampling, a questionnaire was developed to gather the views of the company’s employees on the perceived impact of TQM in their organization on its ability to meet different business challenges. 73 employees completed the survey. Partial Least Squares (PLS) were chosen using SmartPLS 3 software with a two-stage approach in measurement and structural model testing. The results showed that customer focus and senior management support are the two most important variables that enhance the ability to face different types of challenges. Integrative relationships with suppliers and continuous improvement were found also to have a significant impact on reducing quality costs to help overcome competition. Based on the previous literature and results, this research recommends the orientation towards greater employee involvement because they are the cornerstone to successful TQM; further, it is more advantageous to analyze both the soft and hard effects of TQM to overcome challenges.