THE IMPACT OF TQM PRACTICES ON KEY PERFORMANCE INDICATORS: EMPIRICAL EVIDENCE FROM AUTOMOTIVE DEALERSHIPS


Ekonomika a management

THE IMPACT OF TQM PRACTICES ON KEY PERFORMANCE INDICATORS: EMPIRICAL EVIDENCE FROM AUTOMOTIVE DEALERSHIPS

The After-Sales (AS) service is becoming a strategic business driver to maintain longterm customer retention, customer satisfaction and capital revenue in such a manner that it guarantees the continuous improvement of products and services offered to customers; AS market is up to five times larger than the new product market (Bundschuh & Dezvane, 2003), whilst it is widely agreed that the turnover of the original purchase can be tripled during the product lifespan by investing in AS services. Consequently, performance of the after-sales department should be well measured and monitored to achieve a balance between the business and the operational goals on the one hand, and their assessed values on the other (Cavalieri et al., 2007).
Jméno a příjmení autora:

Omar Sabbagh, Mohd Nizam Ab Rahman, Wan Rosmanira Ismail, Wan Mohd Hirwani Wan Hussain

Rok:
2019
Ročník:
22
Číslo:
1
Klíčová slova:
Automotive, key performance indicators, total quality management, after-sales service, partial least square PLS
DOI (& full text):
Anotace:
The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The…více
The automotive business is gradually transforming into a service-based business, while the aftersales (AS) service is becoming a strategic business driver to increase the capital revenue. The relationship between quality and performance management is still adversarial, wherein the nonfinancial aspect of performance measurements is significantly ignored. This research is conducted in the context of Malaysian automotive dealerships service centres in which the primary objectives are to identify the total quality management (TQM) practices and the financial and non-financial key performance indicators (KPIs) adopted in this sector, and to examine the impact of TQM practices on AS KPIs. Therefore, a conceptual model proposes that the high implementation of soft and hard dimensions of TQM has a positive impact on KPIs. A quantitative survey methodology was employed and a structured questionnaires was elaborated based on validated theoretical concepts, while the obtained data were analysed with the help of structural equation modelling (SEM) partial least squares technique (PLS). The results refer to equivalent applicability of TQM practices across manufacturing and service sectors, while the influence of TQM practices on the multi-oriented KPIs is empirically supported. The article contributes to the literature in service marketing and quality in which it streamlines two paradigms: TQM and performance management as it can form a guideline for scholars to deepen their relevant comprehension. In practice, the findings contribute to service managers by emphasising the importance of TQM practices for the improvement of service performance in both financial and non-financial aspects.
Sekce:
Ekonomika a management

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