Formulation of Conceptual Model of Total Quality Management Practice with Organisational Performance of UAE Service Industry

Abstract

UAE service industry constitutes nearly 55% of the total country GDP. UAE diversification policy such as introduction of TQM, it improves the services sectors activities, such as tourism and financial services. Hence, this paper presents a study on formulation of conceptual model that link TQM practices elements with organisational performance for service industry. Based on the TQM theories such as Deming's theory, Juran's theory, Crosby's theory, Feigenbaum's theory and Ishikawa's theory, the key practices of TQM are knowledge management, strategic planning, quality-oriented leadership, continuous improvement, customer focus, organizational culture, and supplier partnerships. While the impact of adopting the practices of TQM is measured in terms of performance improvement, customer satisfaction levels, financial gains, cost reduction, and achievement of performance targets in time and within the resources available. Finally, in the context of the UAE the conceptual model was presented. This model can be further analysed using structural equation modelling with data collected from service industry respondents.