Modeling the Impact of Total Quality Management (TQM) Practices on Market Orientation in Service Organizations (Case Study: Isfahan Refah Kargaran Bank)

Abstract

Purpose: purpose of the present survey is to determine degree of relationship and impact of total quality management (TQM) practices on market orientation in service organizations.

Research methodology: this survey was conducted using descriptive-field method. Its primary data was obtained through field study by two TQM and market orientation questionnaires among seventeen selected branches of Refah Kargaran Bank in Isfahan province. Volume of sample included sixty three (63) persons. Multiple regression method, F-test and T-test, ANOVA and correlation tables were used in the survey.

Findings: continuous improvement with β=0.508 is the first and most effective factor on increasing of market orientation among seven independent variables (training, management commitment, employees’ empowerment, customer focus, information, continuous improvement and employees' involvement). Training with β=0.319 is in the second place and customer focus with β=0.168 is in the third place. The regression model of this relationship is as below:

Y=-0/303+0.531x₁ + 0/367 x₂ + 0/222 x₃

Where x₁ is continuous improvement, x₂ is training, x₃ is customer focus and Y is service quality.

Conclusion: given to obtained results it could be claimed that it is possible to achieve a desirable level of success in business through more precise planning, focusing on several more important and effective principles and given to prioritization of effective factors on market orientation during a shorter period of time and paying lower costs.