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Linking Quality with Social and Financial Performance: A Contextual, Ethics†Based Approach

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  • Ismail Sila

Abstract

The objectives of this study are to test the relationships among total quality management (TQM) practices, corporate social performance (CSP), and financial and market performance (FMP); and to determine the moderating effects of two contextual factors—country and sector—on these relationships through the lenses of several theories, including stakeholder theory, integrative social contracts theory (ISCT), and legitimacy theory. Using data from the various sectors of the economies of two developing countries, Turkey and North Cyprus (NC), we tested the proposed model utilizing structural equation modeling (SEM). The results from both samples supported the proposed model relationships, providing support for the idea that focusing on stakeholder interests embedded in various TQM practices helps improve both CSP and FMP. Country of origin had no moderating effects on these relationships, whereas sectoral effects were highly significant. The study also discusses the managerial and research implications of these findings.

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  • Ismail Sila, 2018. "Linking Quality with Social and Financial Performance: A Contextual, Ethics†Based Approach," Production and Operations Management, Production and Operations Management Society, vol. 27(6), pages 1102-1123, June.
    • Handle: RePEc:bla:popmgt:v:27:y:2018:i:6:p:1102-1123
    DOI: 10.1111/poms.12857
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    Cited by:

    1. Liu, Fuzhen & He, Chaocheng & Lai, Kee-hung, 2024. "Market reaction to responsible production practices adoption: The role of firm size and financial slack," International Journal of Production Economics, Elsevier, vol. 272(C).
    2. Prim, Alexandre Luis & Freitas, Kenyth Alves de & Paiva, Ely Laureano & Kumar, Maneesh, 2023. "The development of quality capabilities in Brazilian breweries: A Co-evolutionary approach," International Journal of Production Economics, Elsevier, vol. 256(C).
    3. Muhammad Khuram Khalil & Rashid Khalil, 2022. "Leveraging Buyers’ Interest in ESG Investments through Sustainability Awareness," Sustainability, MDPI, vol. 14(21), pages 1-17, November.
    4. Ammar Ahmad & Muhammad Azeem & Sanober Salman Shaikh, 2019. "Csr Or Iso Certifi Cation: What Does Really Matter For Consumer In Developing Countries," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 15-18.
    5. Khurram Rehmani & Yasir Ahmad & Afshan Naseem & Tasweer Hussain Syed, 2020. "Do they really coexist? An empirical analysis of a conjoint implementation of Quality Management System and High Performance Work System on organizational effectiveness," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-20, March.
    6. Gabriel Cachón‐Rodríguez & Alicia Blanco‐González & Camilo Prado‐Román & Francisco Diez‐Martin, 2021. "Sustainability actions, employee loyalty, and the awareness: The mediating effect of organization legitimacy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1730-1739, October.
    7. Ammar Ahmad & Muhammad Azeem & Sanober Salman Shaikh, 2019. "Csr Or Iso Certifi Cation: What Does Really Matter For Consumer In Developing Countries," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 95-111.
    8. Jónas Oddur Jónasson & Kamalini Ramdas & Alp Sungu, 2022. "Social impact operations at the global base of the pyramid," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4364-4378, December.

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