Structural Equation Model of Total Quality Management Practice with Organisational Performance of UAE Service Industry

Abstract

This paper presents a structural equation model analysis of TQM practices which influenced the organizational performance for UAE service industry. The data for the model was collected from questionnaire survey amongst respondents that involved in total quality management practice in service organizations in UAE. The model was developed and analysed in AMOS SEM software. The model was initially analysed at measurement stage using CFA. The analysis was conducted individually for each measurement model until it achieved the model fitness criteria. After that the structural model was analysed for it fitness index achievement and path analysis for hypothesis confirmation. The results found that all the measurement models and structural model achieved the criteria fitness. In term of path analysis of the structural model, it was found that all the six TQM practices which are Quality oriented leadership; Customer focus; Strategic planning; Organizational culture; Continuous improvement; Supplier partnership support the organisational performance. Unfortunately Knowledge management seems not able to have significant level of relationship to support the organisational performance. This is because the data collected from the questionnaire survey is not strong enough to make the knowledge management path significant