HomeInternational Journal of Multidisciplinary: Applied Business and Education Researchvol. 4 no. 3 (2023)

Impact of Quality Management System Practices on the Business Performance of a Government Corporation in Clark Freeport Zone, Philippines

Jherson L. Quiambao | Karlo Nicolas G. Alvaro

 

Abstract:

Quality Management System [QMS] is an emerging management philosophy that takes its course amid today’s competitive and dynamic global markets where quality becomes a critical factor of business excellence. Discovering its value as a success factor, many studies were conducted to determine the level of influence of QMS practices on the business performance. Invested from the non-consensus findings from these studies and the scarcity of published papers about QMS in Philippine government corporations, the researchers conducted quantitative research in a government corporation in Clark Freeport Zone, Philippines, designed with descriptive, cross-sectional, causal-comparative framework to determine the impact of the QMS practices on its business performance. A 40-item close-ended survey instrument, tested for validity and reliability, was developed to measure the QMS practices in the context of the ISO 9001:2015 QMS, and the Business Performance in the perspectives of the Balanced Scorecard. This was accommodated by 125 respondents, representing 88% of its target population. Results revealed that the QMS practices dimensions top management leadership, customer orientation, process control and improvement, and employee engagement each had significant positive impact on each business performance perspectives financial, customer, internal business processes, and innovation and learning of the subject government corporation. Determining the influence of quality practices on business performance is significantly relevant in government corporations since these entities act as both a public sector and a business entity. It creates an opportunity for the Philippine leaders to justify the national thrust of delivering quality-oriented government service to the Filipino people.



References:

  1. Ahmudi, Bambang P., & Naniek, U. H. (2018). Effectiveness analysis of ISO 9001:2015 implementation at man-ufacturing industry. SHS Web of Conferences,49(1008), 1-8. https://doi.org/10.1051/shsconf/20184901008
  2. Andreeva, T., Popova, L., Yashina, M., Babynina, L.,Yaksanova, N., & Natsypaeva, E. (2019). Integration of the quality management and strategic manage-ment systems into unified management system ofenterprises. Quality Access to Success, 20(171), 3-8. https://pro-quest.com/open-view/b06ab419c7c6cd1465df7274bf6e0ab5/1?pqorigsite=gscholar&cbl=1046413
  3. Anggadini, S. D., Surtikanti, S., Saepudin, A., & Saleh, D. S. (2021). Business performance and implementation of total quality management: A case study in Indo-nesia. The Journal of Asian Finance, Economics and Business, 8(5), 1039-1046. https://doi.org/10.13106/jafeb.2021.vol8.no5.1039
  4. Bakator, M., & Ćoćkalo, D. (2018). Improving business performance with ISO 9001: A review of literature and business practice. The European Journal of Ap-plied Economics, 15(1), 83-93. https://doi.org/10.5937/EJAE15-16145
  5. Bravi, L., Murmura, F., & Santos, G. (2019). The ISO 9001:2015 Quality Management System standard: Companies’ drivers, benefits and barriers to its im-plementation. Quality Innovation Prosperity, 23(2), 64-82. https://doi.org/10.12776/QIP.V23I2.1277
  6. Chege, S. W., & Bett, S. (2019). Total Quality Management Practices and Performance of Organizations in the Real Estate Industry, Case of Property Developers in Nairobi City County, Kenya. International Journal of Current Aspects, 3(IV), 14-31. https://doi.org/10.35942/ijcab.v3iIV.44
  7. Development Academy of the Philippines. (2020). PDC 2020 Annual Report [PDF]. https://drive.google.com/file/d/1rGkDAE2gK1P2PY-BDOVV9CxnEYqW4BCsJ/view
  8. Dieste, M., Panizzolo, R., & Garza-Reyes, J. A. (2021). A sys-tematic literature review regarding the influence of lean manufacturing on firms' financial perfor-mance. Journal of Manufacturing Technology Man-agement, 32(9), 101-121. https://doi.org/10.1108/JMTM-08-2020-0304
  9. Donald, G. I., Otieno, O. C., Obura, J., Abong’o, B., & Ondoro, C. (2015). Effect of implementing quality manage-ment system on the performance of public univer-sities in Kenya: A case of Maseno University, Kenya. American Journal of Business, Economics and Man-agement, 3(3), 145-151. http://openscienceonline.com/journal/archive?journalId=709&is-sueId=7090303
  10. Fitriyani, Y., Aziz, Y., Rivani, R., Kaltum, U., & Sihotang, J.(2021). The Role of TQM Practice in Improving Business Performance’s Pharmaceutical Industry in Indonesia. Jurnal Manajemen Indonesia, 21(3), 303-313. https://doi.org/10.25124/jmi.v21i3.2791
  11. Gębczyńska, A., & Wolniak, R. (2018). The impact of quality management systems on the effects of the pro-cess approach implementation. Economic and En-vironmental Studies, 18(4 (48)), 1235-1260. https://doi.org/10.25167/ees.2018.48.4
  12. International Organization for Standardization (2022). ISO Survey 2021 [Excel]. https://isotc.iso.org/livelink/livelink?func=ll&objId=18808772&objAc-tion=browse&viewType=1
  13. Isharyadi, F. & Kristiningrum, E. (2021). Profile of system and product certification as quality infrastructure in Indonesia. Open Engineering, 11(1), 556-569. https://doi.org/10.1515/eng-2021-0054
  14. Joannes, M. (2020). The influence of Quality Management System on Customer satisfaction in Public sector: A Case Study of Government Procurement Services Agency. Doctoral dissertation: Mzumbe University. http://hdl.handle.net/11192/3829
  15. Kasim, T., Haračić, M., & Haračić, M. (2018). The improve-ment of business efficiency through business pro-cess management. Journal of Economics and Busi-ness, 16 (1), 31-43. https://ideas.repec.org/a/tuz/journl/v16y2018i1p31-43.html
  16. Kharub, M., & Sharma, R. K. (2018). An integrated struc-tural model of QMPs, QMS and firm’s performance for competitive positioning in MSMEs. Total Quality Management & Business Excellence, 31(1), 1-30. https://doi.org/10.1080/14783363.2018.1427500
  17. Kim, G. S. (2020). The effect of quality management and Big Data management on customer satisfaction in Korea’s public sector. Sustainability, 12(13), 5474.http://dx.doi.org/10.3390/su12135474
  18. Knox, S., & Marin-Cadavid, C. (2022). A practice approach to fostering employee engagement in innovation in-itiatives in public service organisations. Public Management Review, 1-26. https://doi.org/10.1080/14719037.2022.2055775
  19. Mafini, C., & Pooe, D. R. (2013). Performance measure-ment in a South African government social services department: A balanced scorecard approach. Medi-terranean Journal of Social Sciences, 4(4), 23-36. https://doi.org/10.5901/mjss.2013.v4n14p23
  20. Maqsood, M. B., Hussain, B., & Al Arab, M. (2019). TQM practices and their effect on non-financial perfor-mance: An empirical study of Pakistani Hospi-tals. International Journal of Medical Research and
  21. Health Sciences, 8(4), 147-162. https://www.ijmrhs.com/medical-research/tqm-practices-and-their-effect-on-nonfinancial-performance-an-empirical-study-of-pakistani-hospitals.pdf
  22. Mellahi, K., & Harris, L. C. (2016). Response rates in busi-ness and management research: An overview of current practice and suggestions for future direc-tion. British Journal of Management, 27(2), 426-437. http://dx.doi.org/10.1111/1467-8551.12154
  23. Muiruri, Z.K. (2016). Quality Management Systems and Organizational Performance: A Theoretical Re- view in Kenya’s Public Sector Organizations. Science Journal of Business and Management. 4(5), 150-155. https://dx.doi.org/10.11648/j.sjbm.20160405.12
  24. Muller, R., Smith, E. & Lillah, R. (2018). The impact of employee engagement on organizational performance:  A balanced scorecard approach. International Journal of Economics and Finance Studies,10(2), 22-38. https://dergipark.org.tr/en/pub/ijefs/is-sue/44961/558072
  25. Nurcahyo, R. & Habiburrahman, Z. (2021). Relationship between ISO 9001:2015 and operational and business performance of manufacturing industries in adeveloping country (Indonesia). Heliyon, 7(1), 1-9. https://doi.org/10.1016/j.heliyon.2020.e05537
  26. Office of the President, Institutionalizing the Structure, Mechanism and Standards to Implement the Government Quality Management Program, Amending for the Purpose Administrative Order No. 161, s. 2006, Exec. Ord. No 605, s. 2007 (February 23, 2007) (Phil.). Philippine Official Gazette. https://www.officialgazette.gov.ph/2007/02/23/executive-order-no-605-s-2007/
  27. Parso, Pujiati, H., Bagaskoro, Sunarsi, D., Yusnaldi, Nur-jaya, Affandi, A. & Anggraeni, N. (2021). Effect of ISO 9001:2015 quality management implementation in education on school performance. Journal of Con- temporary Issues in Business and Government,
  28. 27(1), 1848-1855. https://cibg.org.au/arti-cle_8421_e4ae30c0a1a739ebb65f8c99e3818535.pdf
  29. Psomas, E.L. and Jaca, C. (2016), "The impact of total qual-ity management on service company performance: evidence from Spain", International Journal ofQuality & Reliability Management, Vol. 33 No. 3, pp.380-398. https://doi.org/10.1108/IJQRM-07-2014-0090
  30. Sadikoglu, E., & Olcay, H. (2014). The effects of total quality management practices on performance and the reasons of and the barriers to TQM practices in Turkey. Advances in Decision Sciences, 2014. http://dx.doi.org/10.1155/2014/537605
  31. Sanjaya, S., & Mayola, L. (2019). The Effect of Internal Control and Total Quality Management on Organiza-tional Performance. Advances in Social Science, Education and Humanities Research, 377, 61-63. https://doi.org/10.2991/icaess-19.2019.12
  32. Sehlin, D., Truedsson, M., & Cronemyr, P. (2019). A conceptual cooperative model designed for processes, digitalisation and innovation. International Journal of Quality and Service Sciences. https://doi.org/10.1108/IJQSS-02-2019-0028
  33. Sousa, V., Zauszniewski, J., Bergquist-Beringer, S., Musil, C., Neese, J., and Jaber, A. (2009). Reliability, validity and factor structure of the Appraisal Self-Care Agency Scale – Revised (ASAS-R). Journal of Evaluation in Clinical Practice, 16, 1031-1040. https://doi.org//10.1111/j.13652753.2009.01242
  34. Sweis, R. J., Asma'a, S. I., Amayreh, I., & Al-Sayyed, N. (2019). The relationship Between Total Quality Management (TQM) implementation and organisation performance: evidence from the airlines companies in UAE. International Journal of Information, Business and Management, 11(1), 58.
  35. https://www.proquest.com/openview/dec0a8c5c6490748d61897ac340d442e/1?pqorigsite=gscholar&cbl=2032142Theofilos
  36. M., & Evangelia, D. (2020). What is quality all about? In F.A. Al-Rub, P. Shibhab & S.A.Al-Rub (Eds.), Quality Management Systems: ISO 9001:2015. GAVIN eBooks. P.1. https://doi.org/10.29011/978-1-951814-01-4-002
  37. Trkman, P., Mertens, W., Viaene, S., & Gemmel, P. (2015). From business process management to customer process management. Business process management journal. http://dx.doi.org/10.1108/BPMJ-02-2014-0010
  38. Willar, D., Trigunarsyah, B., & Coffey, V. (2016), Organisational culture and quality management system implementation in Indonesian construction companies. Engineering, Construction and Architectural Management, 23(2), 114-133. https://doi.org/10.1108/ECAM-02-2015-0026