Вы находитесь на странице: 1из 66

Influence of Information Technology on Quality Management in Pakistan

Abstract Both information technology and quality management are important for the
survival and sustainable growth of organization in the current era of competitiveness and both have been studied widely in recent last few years. But there is little well-founded research on relationship of information technology with quality management and how IT effects the different dimensions of Quality management like Top management support, strategic planning process, output quality assurance, important innovation, information and analysis, human resource utilization, customer satisfaction and quality results. This paper explores such linkage between IT and Quality management dimensions and the extent of affects through interview survey of different companies based in Pakistan. Using a pre test questionnaire we selecting the sample of 140 companies for targeted respondent and collect the data through face to face survey. After applying statistical tools on collected data we conclude that information technology influences all dimensions of total quality management and extent of affects increases with increased use of IT in total quality management. Ultimately, extent of IT use in total quality management reflects in shape of improve services quality, improved services productivity and improvement in quality management.

Keywords Quality management, Information technology, empirical study, Pakistan, Questionnaires, TQM, IT
1

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Chap # 1: Introduction

This chapter will describe the major topics of the research which includes the background, unique features of the topic, research goals, significance of the research, the research strategy, objectives of the research and the research questions. At the end of this chapter the overall thesis structure will define, in other words the very precise form of all chapters and also show the summary in pictorial form.

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

1.1 Background, Motivations and Research Scope

World is changing rapidly but only one thing is constant that is change. Due to rapid globalization, both services and manufacturing firms are competing in creative environment which enables the firms to compete in domestic and global market. It is generally assumed that main factor behind this high development in global market is technology; however information technology is also pushing industrial world rapidly into next industrial world. According to The Global Information Technology Report 2009-2010, information technology (IT) plays a vital role in economic, social and environmental sustainability. On the other hand, to survive and to remain in competition, organizations have to produce quality products and services (Mjema, Victor, Mwinuka, 2005).

All firms are trying to identified and implement management practices that are compatible with changing environment and help them to respond in proactive manners through continuous improvement (Fassoula, 2006). In the era of global competition customer expectations for quality product/services are increasing rapidly. So in order to win the state and to retain the customers, companies are trying not only to meet but also to exceed the expectation of customers by converting their needs into highly value-able products or services. Total quality management now has been considered very important for operation management practices (Jung and Wang, 2006). And quality management QM is considered integrated set of actions by firm for enhancing quality of products or services (Joiner, 2006). So in the current time very little amount of organization can afford to ignore the term TQM (Prajogo, Sohal, 2003). Because total quality management is the philosophy which can exceed the changing needs of customers, so TQM is very critical phenomena in current situation.

Manufacturing and services organizations are trying to find various means for the purpose of
3

improving the quality of output, reducing the cost and increasing the productivity. So continuous improvement in the quality has become essence and prime strategic objective for the company (Mjema et al., 2005), and one of the most common but recommended approach
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

to achieve continuous quality improvement goal is the philosophy of total quality management (TQM). However, Information technology (IT) plays a role of vehicle in attaining and marinating quality of the products or services. So through proper implementation of information technology (IT) in dimensions of quality management (QM) will respond in the term of customer satisfaction, quality products or services and cost saving. And it is common agreement that information technology (IT) is the key factor increasing productivity and reducing the cost (Bessen, 2002; Kagan, 1994; Kotha and Swamidass, 2000; Torkzadeh and Doll, 1999a; Weston, 1993).

As Barney, 2001 suggests that firms which have greater ability to asses and obtain information on customers and markets have competitive position with respect to their competitor. And Organizations can adopt changes more quickly which are necessary for success and for quality performance, than those who are slow and poor in process of obtaining information. Thus a lot of firms have started implementing strategies which encompasses information technology as a key factor for obtaining and utilization of information (Mata et al., 1995; Tippins and Sohi, 2003). There are many studies on impact of information technology on quality performance, business performance, quality improvements and the phenomena IT-QM relationship which have searched widely for example by Devaraj and Kohli (2003) ; Sriram and Stump (2004) Douglas and Judge (2001) and Kaynak (2003). However there is no vivid and clear understanding for underlining process in which IT influences the TQM (Devaraj and Kholi, 2003; Lee et al.), 2008 cited by Perez-Arostegui 2011. And all these key forces and new management intervention depend on IT because Information technology (IT) is a facilitator for good communication, feedback, advancement in processing tools, analyzing data, evaluating and interpreting result and timely flow of information which are necessary for competitive position, for maximum market share, for attracting new customers, for sustaining old customers and for the purpose of expanding business boundaries to new untapped markets globally. Critical impact of IT to quality management and quality
4

performance has been studied by Sobkowiak and LeBleu (1996), and Pearson and Hagmann (1996).

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Exploring the impact of information technology on total quality management practices in the area of administrative and business operation Hughes (1994) conclude that information technology IT support quality management QM and application of IT in total quality management TQM will require change in organizational climate, culture, commitment of top management, strong leadership. But his study did not answer the question how IT should be implemented in TQM practices. To win the situation companies are focusing on quality management and improving the operational tasks, so that the quality can be enhanced to the extent of customer need and expectation. and companies are working for continues improvement that include Just-In-Time (JIT), Enterprise resource planning (ERP), Total productive maintenance (TPM), Business process re-engineering (BPR), Manufacturing resource planning (MRP) and most importantly Total Quality Management (TQM) they all rely on IT.

And it is common agreement that the implementation of information technology IT in different dimension of quality management will improve production process, enhance the operational task and ultimately, quality will be improved. That is why firms are trying to make maximum use of information technology with total quality management to enhance the quality f output. Many researchers conclude about information technology has positive relationship with total quality management and as well as with business performance. As Roach (1991) suggest after undertaking a research that implementation of information technology in quality management can help in increasing quality by following way:

Can increase quality awareness; Minimize cost of quality; Enhance the processing of data related to quality and Improve online data/information about quality.

Information technology (IT) and Quality management (QM) is necessary for the success of
5

company and most of the companies have capability to manage quality management and access necessary IT but there arise new need of successful combination of both. The information technology relation with total quality management has received a lot of attention
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

and considerable interest of researchers in literature and there is common consensus that implementing a particular technology within the firm cannot provide a competitive advantage because technology can be copied by competing firms (Powell and Dent-Micalef, 1997). So information technology provides an edge which will be difficult to replicate. Some researches argue that information technology IT has significantly positive impact on business performance. As explained by Sanchez-Rodrguez et al (2011) IT in operation has received attention and interest because of implementing total quality management philosophy (Gunasekaran and Ngai, 2004), both IT and TQM are the key elements for success of any organization in global market and this research study mainly focus on the combination, relationship and impact of both elements.

Business context is evolving rapidly and here is a lot of pressure due to competition, increased rate of chang in product design, innovation, product life cycle and unpredictability of the market (Ngai, Chau , Chan, 2010). These issues need to respond quickly by the firms to sustain the competitive edge for the success of business (Ngai et al., 2010). It is argued that information technology can alter the competitive forces and can change industry environment (Blanton, Watson, Moody, 1992). As studies shows that quality management QM play a vital role in improving companys position and proper development and implementation of information technology IT competencies will improve the relation, enhances the performance to achieve competitive edge (Perez-Arostegui et al., 2011). More and more proper application of information technology IT and quality management QM are the strategic business initiatives which enhance companys performance (Jiqin Han et al., 2009).

There are studies which show that in which way information technology can be used to increase the total quality management practices (Ang, Davies, & Finaly, 1999). Rogers et al., (1996) explore the linkage of IT and companys performance in warehouse industry and his study shows the positive relationship between information technology IT and performance but impact of IT in context of quality management QM was not explored. Past study results
6

suggest that Information technology (IT) with the combination of other resources helps a lot in achieving and sustaining a competitive edge (Powell and Dent-Micallef, 1997; Jarvanpaa and Leidner, 1998 ) so IT is the facilitator of other business processes such as new product
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

development, customer quality business process reengineering (Perez-Arostegui, BenitezAmado, Tamayo-Torres, 2011).

This means that information technology (IT) should be used not only within the company, but also across companys boundary. However, the IT should be used in such areas which lowers the effectiveness and efficiency of these systems like procurement, production and sales (Jiqin Han, Trienekens, Omta, 2009). Researches also suggest that quality management can improve firms position and performance (Reed et al., 2000), but applying information technology (IT) in good manners can impact relationship positively (Forza, 1995; Ahmed and Ravichandran, 1999; Willcocks et al., 2007). So by enhancing firms competencies in information technology will reflect in term of quality improvement, performance improvements and better competitive position (Pearson et al., 1995, Jenkins, 2010).

In spite of increasing attention of scholars about how information technology can maintain competitive edge there is no clear concept of process by which information technology IT affects the organization strategy and firm performance enhancement (Perez-Arostegui, et al., 2011). There are theoretical evidences which show positive relation of IT and performance, but there are less empirical evidence for above mention preposition.nThe first study for understanding relationship of information technology IT and total quality management TQM was conducted by Forza (1995), but that was at initial stage and research could not get sufficient evidence relating to IT and TQM relationship. In Mauritius, a research study was done by Lai Wai et al. (2009) to measure the impact of IT on quality management and researchers conclude in the presence of data that ISO certified companies are using IT that have substantial impact on performance and quality management. so there arise need to further investigate the impact of IT on performance, different dimensions of quality management with in manufacturing, services, small, large, local and multinational organization.
7

There are theoretical evidences that information technology IT plays a vital in success of quality management implementation (Perez-Arostegui, Benitez-Amado and Tamayo-Torres, 2011). The first and earlier empirical study that was performed by Forza (1995), to assess
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

linkage between information technology (IT) and quality management (QM) but that does not obtain evidence about influence of information technology on quality management. So the impact and influence of IT on the dimensions of quality management have to be investigated more deeply. As by Dewhurst et al., (2006) the next study was done by Torkzadeh and Doll (1999) and their work was unable to get recognition. Pearson et al., (1995) and Matta et al., (1998) argue that responsiveness for information technology is very necessary element in implementing IT-TQM system. And many benefits can be received from integration of both total quality management and information technology, like in shape of lower production cost, lower waste, improve technology and customer satisfaction cited by (Ang, Davies, and Finlay 2001). Research studies provide evidence about significance of information technology in quality performance but the role of information technology is not studied in the context of quality management environment (Chooi-Leng Ang et al., 1999).

That is why motivated by scarcity of empirical the studies on relationship of information technology and quality management, we are undertaking such kind of study which put a new brick in the literature of IT and TQM. More especially this important matter is not investigated in the Pakistani culture.

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

1.2 Significance, Purpose & Distinctive Features


This research study will provide further insight and more detailed information about firms strategy for implementing total quality management with effective use of information technology to enhance business performance, improve quality, and sustain competitive edge with respect to their competitors. The main focus of this research study is to identify practices and process of both total quality management and information technology IT. More and more to assess information about inter relationship of TQM and IT. The objective of research is to build a general understanding to top executives of the organizations about meanings of total quality management TQM and information technology IT. And how both can be used within the organization for optimum use of resources and minimizing cost for a competitive price of their product or services. It also provide evidence for firms that either total quality management TQM should be treated a business strategy or a strategic business issue and what will be more successful for quality results. The importance of the research also increases because it will identify and study each dimension of total quality management and impact of IT on every construct of TQM and extent of affects.

The study is significantly important because of following objectives:


9

Enhanced quality awareness Reduced quality costs Improved quality processes and productivity of the company in general. Measurement of the impact of TQM implementation on cost efficiency. Measurement of customer satisfaction. This will also measure either there is relationship between total quality management and information technology.

Role of top management in implementing total quality management.

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Measurement of employee satisfaction. Role of top management in implementing information technology. Impact of good leadership in TQM and IT Affect of leadership on customer satisfaction Impact of leadership on quality results. Role of management in customer satisfaction and quality results. Impact of information technology on employees motivation and behavior. Acceptance level of employees for new IT strategies with TQM initiatives. Measurement of process performance. Senior management leadership of the TQM program. Incorporation of quality plans and objectives in the strategic planning process. Understanding relationship of TQM and ISO Understanding linkage between ISO certification and implementing IT To identify IT has most significance effect on which dimension of TQM To understand proper application of IT in QM practices

10

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

1.3 Research Strategy

The strategy means the course of action to achieve the expected goals. Our goal is to find the impact of Information technology IT to constructs of total quality management and to know the extent of affects in different dimensions of TQM. Why this goal is important? Because due to the advancement in the technology the way of doing business rapidly change. Through this rapid change in technology, changing in environment, changing face of competition, changing customer preferences many businesses are held and many businesses are shutter down and the causes of organization failure are also being change. The strategy which we adopt to achieve this goal we will choose the sample of the organizations which have realized the quality aspect of product or services in this era of competitiveness. Then conduct the interviews from top quality managers and executives and fill up a questionnaire which contains their responses about their commitment toward quality and information technology. Then analyze all the views getting from the interview in order to extract the results. The sample would not only from the same industry but it would be the mixture of the companies. If we take the sample of different companies then the recent factors can be extracted and that would be helpful for theory building. The verification of the situations of organization ability and willingness of information technology usage in organization for enhancing total quality management practices. The population is the ISO certified companies of Pakistan and there will be no attempt of quantitative measures.

11

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

1.4 Research Questions


The main question for the proposed study is to explore the way in which information technology IT influences the total quality management and how IT can be used to support total quality management process and practices. The business environment changes are taking progress by leaps and bounds. In this changing environment the management should have the multi skills and should flexible means change themselves according to the environment change. The management and Information technology IT plays a vital role for success or failure of the organization. However this study will also investigate about:

If IT affects TQM, a bigger use of IT should be positively related with any impact of IT on TQM? IT-TQM implementation is positive, so there is any improvement related with company performance? A positive impact of IT on TQM dimensions should have a positive impact on company performance? Either IT can be used without top management support?

12

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

1.5 The thesis structure and an overall map


We will conduct the survey and take the interviews from the quality managers who are committed to continual improvement in business processes and also products or services. The sample would be the 140 companies in order to collect the data for the theory building.

13

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Background

Goals, Objectives

Significance

INTRODUCTION

Strategy, Feature

Research Scope

Research Question

Literature Review

Existing Gap

Conceptual framework

Hypothesis

Data Collection Tools

Data Analysis Tools

Findings and Discussion

14

Conclusion and Recommendation


Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Chap # 2: Literature review

The confused path always gives the new understandings. This chapter will include past literature review and research studies done by other researchers on main topic and sub topics. This chapter will also encompass research gap that will be identified by help of past literature which should be filled by further investigation and research study. Literature review is the chapter which includes the understanding of different variables found in the different researches. This chapter describes the various kind of distance identified in the literature. The chapter also identifies the existing gaps or rationale in the previous researches and point out the several models in order to fill those gaps. At the end of the chapter the different propositions are introduced using different variables.

15

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

2.1 Introduction
Before considering the impact of information technology IT on dimensions of quality management and quality results it is necessary to understand and identified the meaning of information technology IT and total quality management QM and construct of total quality management. And also it is necessary to review some related but important researches on the main topic and sub-topic by other researchers.

Study Dewhurst et al.(1999) Lloyd-Walker & Cheung (1998) Lai wai et al (2010) Lai wai et al (2010) Lai wai et al (2010) Lai wai et al (2010) Perez-Arostegui et al.(2011)

Impact of IT on total quality management IT has (+) impact on dimensions of TQM IT has (+) relation with customer focus, performance & profitability

sig r P

.717

IT has (+) impact on manufacturing and services organization IT has (+) impact on local and multinational firms IT has (+) impact on small and large firms IT has (+) impact on public and private companies
H1: The existence of an IT competence will have a positive and direct effect on quality performance improvement.

Ps

a) Direct & (+) relationship between flexible IT infrastructure and quality performance improvement
16

.83

b) Direct & (+) relationship between IT technical knowledge and quality performance improvement

Ns

.80

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

c) Direct & (+) relationship between IT managerial knowledge and quality performance improvement d) Direct & (+) relationship between the integration of IT strategy with firm strategy and quality performance improvement. H2: The relationship between Information Technology competence and quality performance improvement is moderated positively by orientation to leadership. a) IT infrastructure and quality performance improvement is moderated positively by orientation to leadership.

.72

.77

.83

b) IT technical knowledge and quality performance improvement ns is moderated positively by orientation to leadership

c) IT managerial knowledge and quality performance improvement is moderated positively by orientation to leadership. d) The relationship between the integration of IT strategy with firm strategy and quality performance improvement is moderated positively by orientation to leadership. Sanchez-Rodrguez et al.(2006) IT to support top management leadership has (+) impact on operational performance IT to support top management leadership has (+) impact on quality performance IT to support customer relations has (+) impact on operational performance IT to support customer relations has (+) impact on quality performance IT to support supplier relationships has (+) impact on operational performance IT to support supplier relationships has (+) impact on quality performance
17

P P

P P P P P P

IT to support workforce management has (+) impact on operational performance IT to support workforce management has (+) impact on quality performance

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

IT to support product design process has (+) impact on operational Performance IT to support product design process has (+) impact on quality Performance IT to support process flow management has (+) impact on operational performance IT to support process flow management has (+) impact on quality performance IT to support quality data and reporting has (+) impact on operational performance IT to support quality data and reporting has (+) impact on operational performance Strategic factors have (+) impact on financial performance Strategic planning factors have (+) impact on non-financial performance positive relationship between both IT & TQM variables can be expected Impact of IT on TQM directly relates to extent of IT use Martnez-Lorente IT has (+) impact on companys performance There is (+) relationship between IT and TQM implementation and operational performance of the firm

ns ps ns P P

Ismail Salaheldin (2008)

P P P

Martnez-Lorente

P P p

Notes: Sig = statistically significant finding (p < .05); ns = non-significant effect; p = positive, significant effect; n/a = data not available; ps= partially significant; (+) = positive; r (Pearson correlation coefficient).

18

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

2.2 Information Technology


The key enabler of rapid change in current business environment is Information technology (IT). Revolution in information technology is changing the life pattern of peoples everywhere throug advance communication infrastructure and reducing geographical distance. Due to advancement in IT the whole world can be viewed only one clik on computer screen. To compete in fast growing and knowledge based economy, information technology is the essential and key component for every organization. Fedral government of Pakistan showing great emphisis toward intensive use of information technology in different fields of pakistan (Ghauri, 2003; Pasha, 2005). IT can be define as computer and telecommunication hardware and software that aid in processing, collection, and transmission of text, voice, and pictorial information (Lahti, 1994). Bharadwaj (2000) defines IT as the ability to mobilize and utilize resources based on IT through the combination or coexistence of other resources and capacities that exist in the firm. Anyakoha (1991), define information technology as the use of manmade tools for the collection, generation, communication, recording, re-management and exploitation of information. It includes those applications and commodities, by which information is transferred, recorded, edited, stored, manipulated or disseminated.

With the rapid changing world, application of IT in various sectors is increasing continuously because it provides real time crucial information which is important for decision making. Information can be as important as water, shelter; food and IT make it possible and easier to smooth flow of information within the organization. World is facing technological changes and that have great impact on our lives but information technology influenced more than all others (Helmut, 1998). So it is hard to afford the loss of ignoring the term IT because now
19

firms competency less rely on factor of production like land, labor, capital. Information is now replacing the all traditional factors, IT provide timely information which can enhance the competitiveness of the organization. Information technology is also helpful in reducing boring
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

and dirty jobs and also enhance job satisfaction. IT also facilitate the smooth and immediate flow of important information between different departments and as well as different branches of the orgaization. As cited by Bresnahan, Brynjolfsson, Hitt, (2000), there are several reasons for investing in IT like quality enhancement for products, timeliness, notably customer services, convenience. TQM and IT are argued complementary resources which have positive impact on quality performance, reduce the cost and sustain the competitive advantage. The role of information technology is changed from back office support toward more central strategic role Venkatraman et al. (1993) and Boynton et al. (1993). Murray (1991) believes that information technology is signifacntly use to undestand, messure and enhance a firms level of quality. It is clear that information technology help in implementation of statistical process, experiment design, failure mode and effect analysis, quality function deployment and self assesmsnt against performnce. Information technology facilitate in collecting real time dat about customer needs, customer satisfaction, product quality, services quality, internal control proces, business cyle, and other messurement system which are necessary for firms growth. With the use of Information technology the abality ti innovate also improves (Schein, 1994). CAD technologies are important designing, processes and new products, by using IT technoques like CAD products can be design according the needs of customers more quickly, innovation can be greater and faster. Information technology plays a vital role in design of experiment (Mezgar et al., 1997), failure mode and effect analysis (Mezgar et al., 1997) and quality function deployemet (Rangaswamy and Lilien, 1997 and Zhang et al. 1996). In all above issues, information technology does not change the way of implementing all thes quality tehniques and tools, but also support and facilitate for more smooth, quick, easy and complet use of quality techniques. Information technology is now being used almost all fields and sectors, similerly IT also support the maintinance process by the use of automated system, IT also facilitate the function to derect the need for machine maintance and explore what needs to be done (Dilger, 1997; Krouzek, 1987). Automation leads to less process varianve, speed up the production process and brings significant enhancement in quality (Freund et al., 1997).
20

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

2.3 Total Quality management TQM


In last two decades TQM has received a great attention and much have been written about importance and value of total quality management in improving business performance, business operation, enhancing quality of products and services. The lecture and researches on total quality management assume that TQM has significance effect on organizational performance and also associated with operational performance (Choi and Eboch, 1998), (Broetzmann et al., 1995). And total quality management has ability to innovate with a minimum cost which allows flexibility to meet customers needs and wants at competitive price. There are many definition of total quality management for example: Set of mutually reinforcing principles, each of which is supported by a set of practices and techniques (Dean and Bowen, 1994).

But according to Ang et al. (2000), previous literature provide common dimensions of quality management and important attributes of these dimensions, attributes are listed below in a table: (see the table)

21

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

QM

dimensions Attributes

References

1. Leadership

Vision

Oakland, 1993; Bohan, 1995; Ryan, 1996; Terziovski et al., 1996

Commitment

Wythe, 1991; Garvin, 1991; Cullen, 1992; Tyrrell, 1992; Oakland, 1993

Creation of quality culture

Lascelles and Dale, 1992; Oakland, 1993; Vinzant and Vinzant, 1996

Total quality leadership

Tyrrell, 1992; Cullen, 1992; Flynn et al., 1994; Keck, 1996

Communicating

Jowett, 1991; Wythe, 1991; Cullen, 1992; Scully, 1996

Empowering

Oakland, 1993; Morgan and Murgatroyd, 1994; Woodruff, 1995-96

Supportive 22

Wythe, 1991; Cullen, 1992; Smyth, 1992; Oakland, 1993

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

2. Strategic planning Process

Garvin, 1991; Kanji and Asher, 1993; Bohan, 1995; Ryan, 1996 Continued

QM

dimensions Attributes

References

3. Output quality Quality standards assurance Process control

Morgan and Murgatroyd, 1994

Barker, 1991; Milakovich, 1991; Oakland, 1993

Continuous improvement

Morgan and Murgatroyd, 1994; Woodruff, 1995-96

Quality assessment Documentation Supplier quality assurance

Saraph et al., 1989; Oakland, 1993 Oakland, 1993; Woodruff, 1995-96 Saraph et al., 1989; Flynn et al., 1994; Thiagarajan and Zairi, 1997

4. Important innovations

Varian, 1992; Oakland, 1993; Morgan and Murgatroyd, 1994; Terziovski et al., 1996

5. Information & Analysis Data scope Garvin, 1991; Atkinson, 1991; Kyte, 1991; Seddon and Jackson, 1991; Zahedi, 1998 23

6. Human resource Utilization Empowerment Wythe, 1991; Flynn et al., 1994; Scully, 1996
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Teamwork

Atkinson, 1991; Wythe, 1991; Flynn et al., 1994; Scully, 1996; McCafferty and Laight,1997

QM

dimensions Attributes

References

Involvement

Wythe, 1991; Cullen, 1992; Walley and O'Brien, 1993;Thompson, 1998

Communication

Oakland, 1993; Khalil, 1996; Scully, 1996; Goodman and Darr, 1996

Training and education

Jowett, 1991; Wythe, 1991; Harding, 1991;Spenley, 1992; Scully, 1996; Ryan, 1996;Siegel and Seidler, 1996

Recognition/motivation

Memmott, 1992; Varian, 1992; Keck, 1996;Thompson, 1998

7. Customer satisfaction

Customer requirements Determination Customer satisfaction evaluation Relationship management

Garvin, 1991; Wythe,1991; Kanji and Asher, 1993; Ryan, 1996 Evans, 1991; Terzioski et al., 1996

Evans, 1991; Oakland, 1993

8. Quality results
24

Product and service quality Garvin, 1991; Oakland, 1993; Woodruff Productivity Waste reduction or 1995-1996; Ward, 1996; Ryan, 1996 --------------------------

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Elimination

Several writers have attempted to define the key dimensions that constitute TQM for example Ahire et al. (1996), Dale et al. (1994), Flynn et al. (1994) and Saraph et al. (1989). Total quality management is management philosophy which enhances the performance and competitiveness of the company through continuous improvement in the firms process, practices, peoples, products, services, culture and environment. Total quality management can benefit in term of image, increased the satisfaction quality awareness of employees (young, 2006). To remain in the competition in global market place, organization of all sectors are concentrating on maintaing a competitive edge, which is directly related to upkeep of product or service quality. And an approach for upkeeping quality is the philosphy of total quality management. It is new/modern managers/management philosophy and TQM linking employers consideration toward quality to wider industrial approach. Jackson and Ashton (1993) suggest that quality system is similar to band new car without petrol: perfect in all respect, but it will not go. The firms those which are concentrated toward business optimization, cost reduction, waste reduction and process reengineering edge are on jumping to the total quality management (Dayton, 2003). Successful implementation of total quality management results include sustaining and obtaining excellence, creating right attitude, obtaining affective business solution, reducing errors and zero defects, delighting suppliers and customers (Mohanty and Behera, 1996). These improved practices will ultimately result in high productivity. Due to these contributions, total quality management has became world phenomena for companies around the world, firms are changing traditional management practices to new TQM intervention (Chen, 1997).
25

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

2.3.1 Leadership
Top management leadership and commitmet is primary element for successful implementation of total quality management. Leadership of top managemnt has to be the pinnor in implementing TQM philosphy and they should have to all responsibilities for services and product. Leadership can be described as any type of process or act of influence in any way gets people to do something (Cillua, 1995). Further, leadership is one of the most important elements in the implementation of TQM program (Kaynak, 2003), as it improves organizational performance through its influence on other QM practices (Wilson and Collier, 2000). Prior literature has shown that leadership is a key variable for developing a mentality of continuous improvement in all of the firms processes oriented to the satisfaction of customers needs (Flynn et al., 1995; Kaynak, 2003). Literature review also suggests that leadership is one of the most important determinants of the IT adoption and of changes in the organizational culture (Armstrong and Sambamurthy, 1999; Waldman et al., 2001). It is common agreement that top management support and leadership are important successful implementation of total quality management. The literature on total quality management shows that managers commitment and leadership are key factors in implementing management philosophy (Oakland, 1989; Crosby, 1994; Dean and Evans, 1994). There are three type of leadership according to Relational approaches Transactional leadership
26

Leadership in which leaders and followers and viewed as parties to an economic transaction. Transformational leadership
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Where leadership is conceived as a process of transformational of followers Servant leadership Servant leadership which emphasis attitude of services in relationship

Waldman, 1994 consider top management consideration and commitment toward quality as a top priority (Ang, Davies, and Finlay 2001). Leadership in total quality management got a great interest by researchers as Cullen, 1992; Thiagarajan & Zairi, 1997a agree that leadership in TQM sets the mission, mission and quality structure beside that top management has to walk to talk (Ang et al.2001). They also explained that Time, effort and energy put in by leaders and top quality mangers in routine quality activities are more important than lip services Garvin, 1991. Introducing of information technology may generate some hardles and uncertainity within employee so top management leadership is essential to boost up workforce moarl and maintaining conuntinous improvement approaches Zuboff (1983)

2.3.2 Strategic planning process

As Ang et al.2001 describe the study of other researchers about importance of strategic planning process. Quality and anything else does not happen by its own: quality should be planned and manage properly. Strategic quality planning are the important elements which holds firms quality efforts and practices together Garvin, 1991. These quality planes should be align, concentrate, focus, implement and integrate with other planes. Quality experts, researchers are stressing upon the importance of strategic planning process for example Deming, 1986; Kanji & Asher, 1993; Oakland, 1993. Planning itself allow the firm to identify customer needs, understand requirmwnt, mamke employees understand and
27

commitment to quality for the firm (Harrington, 1997; Kanji & Asher, 1993; Thiagarajan & Zairi, 1997a).

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

2.3.3 Output quality assurance


Quality can be defined as the degree of excellence in products or services. Quality contributes a lot in maintaining competitive edge and sustaining customers in the global market. Ensuring the output quality is a key purpose of total quality management. Ignoring the output quality assurance dimension means that ignoring the philosophy of total quality management. All other dimensions of total quality management reveal around the output quality and if the quality is not achieved in products or services mean that purpose of TQM phenomena gone in vain.

2.3.4 Important innovations


Important Innovation are the key ingredients for organizational success and in this era of globalization it is very hard for the firms to sustain a competitive edge. But there should be balance for standardization and innovation as total quality management means for continual improvement (Oakland 1993). And for strategic benefit pursuit new technologies, developing new products or introducing new services, focusing on new innovation are the crucial for success of total quality management (Terziovski et al., 1996).

2.3.5 Information and analysis


28

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

According to Matta et al., 1998 total quality management TQM is information intensive cited by (Ang et al., 2001). Because information plays a vital and crucial role in success of total quality management and information is considered blood for organization. Without proper information it is very hard to achieve the TQM goals and objectives. Information is very important because for all quality enhancement activities and decision making is based on information available (Flynn et al., 1994; Garvin, 1991; Lin, 1991). Atkinson, 1991; Kyte, 1991; Zahedi, 1998 agree that an information system or data base system of the company must be complete and comprehend and it should encompasses all critical/important areas such as customers, suppliers, employees, process and project (Ang et al., 2001). As managing quality enhancement and improvement program which generates a great amount of data, so it is crucial to determine what kind of data is important and should store and how should organize them into a comprehensive structure through which data can be retrieved easily. So Collins, 1994; Lin, 1991; Miller, 1996 state that the databases of company must be flexible and it should have ability to facilitate to different type of data manipulation, different type of analysis to meet the information requirement all level of strategic, operational, tactical and decision making activities as by (Ang et al., 2001).

2.3.6 Human resource utilization


Human are considered very important for sustaining competitive edge as by producing quality goods accepting new changes in the organization and implementing total quality management as Ang et al., 2001 refers previous studies which state that most of the problems faced in implementing total quality management are to do with employees commitment and involvement for obtaining/achieving quality objectives (Dale et al., 1997). In total quality management practices and intervention it is necessary to inform workforce and empowered them to perform their responsibility in proper manner (Flynn et al., 1994; Scully, 1996; Thiagarajan & Zairi, 1997a) and employees should involve/participate in teamwork actively
29

(Kanji & Asher, 1993; Oakland, 1993). In spite of expiries and means to cop up with quality hurdles, teamwork also enhance the moral of employees and improve the productivity (Atkinson, 1991; McCa erty & Laight, 1997; Woodru , 1995 96; Wythe, 1991). Besides as
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

a part of quality principles it is compulsory to provide employees with relevant information, training and education to ensure that they have tools and theory needed to fulfill their quality responsibilities (Ryan, 1996; Scully, 1996; Siegel & Seidler, 1996; Terziovski et al., 1996; Wythe, 1991). And to assess/realize the employees full potential and involvement employees should have motivated through a proper reward system as (Keck, 1996; Memmott, 1992; Thompson, 1998; Wythe, 1991) state that the contribution of employees must be given due reward and recognition.

2.3.7 Customer satisfaction

Quality is defined by the customer in other words meeting the customer needs and requirements. Ang et al., 2001 to satisfy customers, any firm should have information about their customers and be aware of their requirements (Adam et al., 1997; Garvin, 1991; Oakland, 1993, Terziovski et al., 1996). The companies which are quality and customer oriented collect data on their customers on regular basis from different resources and use wide range of quantitative and qualititative measures to know their satisfaction level in order to exceed their requirmant and to know the future needs (Evans, 1991; Garvin, 1991; Oakland, 1993; Thiagarajan & Zairi, 1997b)

2.3.8 Quality results


Quality results contribute greatly in sustaining competitive edge. And all practices done by
30

organization must be assess/measured for the purpose of sustainable improvement, not only meet but also exceed customer needs, uses of means and resources in proper manner and to identify quality problems (Oakland, 1993; Ryan, 1996; Ward, 1996) more over product or
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

services quality, productivity, waste reduction and elimination, customer satisfaction and employees satisfaction should be involve in quality results.

Conceptual framework for quality management

Strategic planning Process

Output Quality Assurance Customer Satisfaction


Organization Quality Achievement

Important Leadership Innovation Quality Results

Human Resource Utilization


31

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Information and Analysis

2.4 Information technology IT in TQM


Use of information technology IT to facilitate quality management and quality initiatives is increasing rapidly and information technology IT is becoming necessary components and ingredients toward quality success. Past study literature show the interest of researcher toward linkage between information technology IT and total quality management TQM to understand issues relating to how IT can influence different aspects and constructs of quality management (Kock and McQueen, 1997), and role of information technology in quality management system (Dewhurst et al., 2003; Forza, 1995). And it is general agreement that information technology IT investments are key factors in increasing productivity of the firm and reducing the cost Bessen, 2002; Kotha and Swamidass, 2000; Torkzadeh and Doll, 1999). It is common agreement that information technology IT and quality management are complementary resources. Mjema et al. (2005) suggested that introducing information technology in quality management enhance quality improvement and reduce in quality cost. And Brah and Lim (2006) argue that total quality management and technology play a vital and important role in enhancing performance. So it is assumed that application of information technology IT in quality management environment and in quality management efforts facilitate organizational capabilities which cannot be easily replicate by others. And there are empirical evidence showing the postitve relationship and sigficantly positive returns from IT investments as by Bharadwaj et al. (1999), Byrd and Marshall (1997), Brynjolfsson and Hitt (1996), Dewan and Kraemer (2000), Kelley (1994), Rogers et al. (1996) and Sohal et al.
32

(2000). Pearson et al. (1995) and Matta et al. (1998), suggest that IT responsive to the needs of TQM is key success element in implementing IT-TQM system. And many benefits can be received from integration of both total quality management and information technology like
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

in shape of lower production cost, lower waste, improve technology and customer satisfaction cited by (Ang, Davies, and Finlay 2001).

In the past IT was used to support decision making and providing timely and smoothly information in proper manners. It was not just providing only information it involves measuring and controlling performance of workers. Literature shows that IT has been used to improve quality management i.e. Hughes (1994) undertake a qualitative case study to explore impact of IT in TQM process in business operation and administration. He found that IT is a tool that facilitated total quality management (TQM) but research was unable to build an understanding that how and where information technology should be used in total quality management. And application of information technology IT is increasing rapidly in different fields including quality management practices and much has been written about IT can affect quality management significantly. All key factors in business including goal setting, quality goals, goal setting procedures, goal assessment, performance measurement, performance assessment and all other key practices need information dissemination and analysis so it is obvious and necessary that IT is important in implementing all key practices. Roger et al. (1996) explore through a research study to understand linkage between IT and organizations performance in warehouse industry, and to understand how information technology supports QM. So on an instrument was developed to assess the influence of information technology on QM and they argue that measures in further research studies to assess the role of IT in supporting quality management practices to gain higher quality and to achieve better performance by Ang et al. (2000). Taguchi (1986) focus on the importance of information acquisition in TQM and suggest that there must be measures and procedures to identify quality problems so data collection and data analysis will involve in knowing the deviation of the results from standards/norms. There is why information technology IT plays a vital role in quality management context. More over in order to maintain a quality level in the organization for products and services a
33

company must have standards, procedures for auditing quality improvement and continuous improvement system. And the one of most important responsibility of quality managers is to

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

communicate quality policies to employees within their organization and that can be done effectively by proper implementation of information technology IT. Murray (1991) believes that information technology is signifacntly use to undestand, messure and enhances a firms level of quality. It is clear that information technology help in implementation of statistical process, experiment design, failure mode and effect analysis, quality function deployment and self assessment against performance. Information technology facilitate in collecting real time data about customer needs, customer satisfaction, product quality, services quality, internal control process, business cycle, and other measurement system which are necessary for firms growth. Advance communication technique, computational technique and data storage system are the key factors for success of total quality management; IT is also enabler for continuous improvement Konstadt (1990).

Ultimate purpose of quality improvement is to eliminate waste, errors, internal and external failure and according to (Juran, 1992) continual improvement encompasses defect prevention, improved action and cost of quality. In producing a product the main focus is to manufacture with zero defects and IT support continuous improvement activities. Marler (1998) after taking a study on effects of TQM training on continues improvement he conclude that employee continual improvement is related to how work is integrated and design to firms IT system. It is suggested that information technology is not only necessary for collaboration purpose but also IT is crucial in combining solution of the problem for whole entity or firm. And application of information technology IT in quality management system QMS not only provide the great amount of information available related to quality improvement but also analytical capabilities for process improvement (Davenport and Short, 1990). CAD technologies are important designing, processes and new products, by using IT technoques like CAD products can be design according the needs of customers more quickly, innovation can be greater and faster. Information technology plays a vital role in design of experiment (Mezgar et al., 1997), failure mode and effect analysis (Mezgar et al., 1997) and quality function deployemet (Rangaswamy and Lilien, 1997 and Zhang et al. 1996). In all
34

above issues, information technology does not change the way of implementing all thes quality tehniques and tools, but also support and facilitate for more smooth, quick, easy and complet use of quality techniques.
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

IT can improve the performance and value of many distinct part of the company because IT integrates isolated activates to enhance quality performance and business performance. By use of IT managers and executives can communicate importance of quality, vision, mission and other key strategic practices to employees of organization. Smooth and timely flow and good communication will increase check and balance system and accountability system in the firm and ultimate results will be in term of quality enhancement and cost reduction. Spangler and Gal-Or (2001) argue that IT support the management decision in separating necessary activities from unnecessary and allow the firm to focus on critical management practices that had been ignored previously. Information technology IT has flexibility to allow us to use many procedures to obtain accurate and less costly assessable information to increase quality awareness in organization. Quality is directly related to profitability because it enhances customer loyalty and satisfaction by exceeding their needs. Quality management practices which include prevention of errors and defects will lead to customer satisfaction so information technology IT can be help full in preventing errors and defects, it can be used in planning process, designing process, testing and development procedures and also in maintain total quality management system. And support of IT in all above activities will save time and cost of preventing activates. Dewhurst et al. (2003) use multiple case studies to investigate use of information technology and quality management dimensions which was partially explored in the previous researches. Although they agreed that result are limited because of small sample size.

Although some researchers agree that total quality management need more research studies (McAdam and Henderson, 2004). Mjema et al. (2005) conduct a study based on quantitative and qualitative data with the purpose of understanding impact of IT on QM process and shows that introducing IT in quality management process reflect in term of quality improvement and cost reduction. And
35

Brah and Lim (2006) suggest that technology and TQM are important for enhancing performance.

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Executives and managers are turning their attention for availing the opportunities through the maximum use of information technology, IT implementation encompasses different fields including QM and application of IT is growing and expanding continuously. One basic reason behind this growth is dramatic increment cost/performance ratio of all type of computer technology cited by (Mjema, Victor, Mwinuka, 2005). This emerging issue was further investigated by Sanchez-Rodrguez, Dewhurst and Martnez-Lorente (2006) in manufacturing sector and they put a step forward how both IT and QM can add more and more value to manufacturing organization, and use of IT in TQM contribute in operational and quality performance. . Matta et al. (1998) for instance, outline a TQM and IT model which need analysis on:

Inter-organizational information requirements in TQM Intra-organizational information requirements in TQM Planning process Production process Selling Data stores

And information technology can be used in quality management and cost reduction in following ways:
36

Increase the speed of data processing Minimizing the through put time Simplification of records Fewer mistakes Lower rate of errors Improve security for data Enhance Data protection Transparency in data processing Increased and improve customer services Flow of information

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Lai Wai, Seebaluck and Teeroovengadum (2010), suggested that firms capability to use quality management and information technology relies to great extent not only on its resources but also ability of make use of information technology and making it capability. They suggest previous literature that shows information technology contribute to great extent in term of quality awareness, product quality improvement and minimizing the cost relating to quality Victor et al. (2005). Recent and more deep study was conduct by Sanchez-Rodrguez & Martnez-Lorente (2011) they investigate the role of IT in quality management process and performance, their research result support view of (Chang, 2006) that information technology an QM are the means to have rapid and more accurate information for the purpose of continuous improvement. They also argue that technology alone cannot ensure improved and high performance but QM capabilities realize the advantages of information technology and ensure the better performance edge. Sanchez-Rodrguez et al., 2011, refers past studies; which devotes a great interest to linkage of information technology with QM, to understand how information technology implementation effects the different aspects of quality management (Kock and McQueen, 1997), information technology in QM (Forza, 1995); and the instruments which were developed to know the extent of affects of information technology on various aspects of QM (Ang et al., 2001; Martinez-Lorente et al., 2004; Sanchez-Rodrguez et al., 2006) Perez-Arostegui, Benitez-Amado and Tamayo-Torres (2011), conclude in their research that implementation of information technology with organizational strategy will have positive effect on organizations competitive position which can be measured/evaluated by QP (quality performance), and in the presence of proper leadership QP will be high. This research support the point that quality improvement resut rely on effective and proper management of IT (Au and Choi, 1999, Sanchez-Rodriguez and Martinez-Lorente, 2011).
37

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

CHAPTER # 3 THEORETICAL FRAMEWORK/METHODOLOGY

The chapter covers the whole area which should covers in the theoretical framework. It discussed and unfolded the existing gaps in the prior studies about impact of information Technology IT on total quality management TQM and performance enhancement. It will also describe the detailed strategy that applies in order to collect the relevant data. It will show the models that will be use to fill the existing gaps. In the mid of the chapter the propositions would be introduced and also brief understanding about the propositions. At the end of the chapter the theoretical framework would be depicted.

38

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

3.1 Introduction
This empirical study shows the IT-TQM relation and way in which IT influence total quality management practices and how it can enhance performance as well as competitive edge. World is changing rapidly but only one thing is constant that is change. And with the rapid globalization organizations are facing competition, the environment is changing from static to dynamic, both services and manufacturing firms are competing in creative environment which enable firms to compete in local/domestic global market. The strategy means the course of action to the expected goals. Our goal is to find the impact of Information technology IT to constructs of total quality management and to know the extent of affects in different dimensions of TQM. Why this goal is important? Because due to the advancement in the technology the way of doing business rapidly change. Through this rapid change in technology, changing in environment, changing face of competition, changing customer preferences many businesses are held and many businesses are shutter down and the causes of organization failure are also being change. The strategy which we adopt to achieve this goal we will choose the sample of the organizations which have realized the
39

quality aspect of product or services in this era of competitiveness. Then conduct the interviews from top quality managers and executives and fill up a questionnaire which contains their responses about their commitment toward quality and information technology. Then analyze all
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

the views getting from the interview in order to extract the results. The sample would not only from the same industry but it would be the mixture of the companies.

Framework for IT-TQM Relationship


Factors affecting use of IT, i.e. External Factors, Organizational, Technological Factors

Extent of IT Use in TQM

8 aspects of IT use in QM Processes:

Impact of IT on: Service quality Service productivity Quality management

40

Leadership Strategic planning process Quality output assurance Important innovations Information and analysis Human resource utilization Customer satisfaction Quality results Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U
Multan

Prepositions:

Prepositions 1: Sanchez-Rodrguez et al., 2006 refers the past study that in successful implementation of total quality management leadership is the one of most important factor and it refers to top management leadership commitment toward implementation of total quality management strategies within whole organization supporting and providing leadership to boost up the morale and motivation level of employee and accepting the responsibilities for services and products (Martnez-Lorente et al., 2000). And Dewhurst et al. (2003) reported that information technology can be used to facilitate the leadership role of top management, support the dissemination values of total quality management, and IT can be helpful in managing information related to quality which ultimately facilitate implementation and application of total quality management and in turn promote the benefits of TQM. Samson and Terziovski (1999) argue that leadership of top management plays a vital role and has positive impact on planning process and operational performance. As cited by Sanchez-Rodrguez et al., 2006 that
41

companies which have higher level of leadership produce higher level of quality products than those which have lower level of top management leadership and commitment Ahire and OShaughnessy (1998). Strategic planning process allows the firms to concentration towards
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

resources and toward goals and strategies that will facilitate the organization to grow, to progress and adopt changing within the industry, top management leadership leads to proper strategic planning and ultimately helps the company to focus what is important. Therefore we proposed following preposition:

H1: IT to support leadership has positive impact on extent use of IT in strategic planning process

Prepositions 2: Top management leadership commitment plays a vital role in making assure the quality of products and services. And information technology support the leadership ultimately strong leadership results in quality output for products and services. It is also included in the responsibility of leadership to manage quality system, process and procedures to make sure quality level of products and safety feature of products. Sanchez-Rodrguez et al., 2006 refers the past study that in successful implementation of total quality management leadership is the one of most important factor and it refers to top management leadership commitment toward implementation of total quality management strategies within whole organization supporting and providing leadership to boost up the morale and motivation level of employee and accepting the responsibilities for services and products (Martnez-Lorente et al., 2000). And Dewhurst et al. (2003) reported that information technology can be used to facilitate the leadership role of top management, support the dissemination values of total quality management, and IT can be helpful in managing information related to quality which ultimately facilitate implementation and application of total quality management and in turn promote the benefits of TQM. So we propose following hypothesis:

42

H2: IT to support leadership has positive impact on extent use of IT in output quality assurance

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Prepositions 3: Leadership is key ingredient in implementing corporate strategies and leaders play a vital role in achieving strategic goals and objectives. Leadership has the responsibilities and implication for innovative culture kazama et al., 2002. Reite-Palmon and Illies (2004) argue that it is hard to achive innovative outcomes without strong support of organization and leaders. Similarly, some studies show that creative performance is significantly influenced by leadership, managerial style and working attitude thamain (1990, 1996, 2003) and McDonough (1993). Dewhurst et al. (2003) reported that information technology can be used to facilitate the leadership role of top management, support the dissemination values of total quality management, and IT can be helpful in managing information related to quality which ultimately facilitate implementation and application of total quality management and in turn promote the benefits of TQM. As literature indicates that information technology impact on all dimensions of TQM so we propose following hypothesis:

H3: IT to support leadership has positive impact on extent use of IT in important innovation

Prepositions 4: Improving the quality is not only the responsibility of quality department in the firm; it is the duty of every one working in organization. Quality enhancement must become a way of life and it should be communicated to the whole staff of organization. H4: IT to support leadership has positive impact on extent use of IT in information and analysis

43

H1 e: IT to support leadership has positive impact on extent use of IT in human resource utilization

H1 f: IT to support leadership has positive impact on extent use of IT for customer satisfaction
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

H1 g: IT to support leadership has positive impact on extent use of IT in quality results

H2: IT to support strategic planning process has positive impact on extent use of IT for customer satisfaction

H3: IT to support output quality assurance has positive impact on extent use of IT for customer satisfaction

H4: IT to support important innovation has positive impact on extent use of IT for customer satisfaction

H5: IT to support information and analysis has positive impact on extent use of IT for customer satisfaction

H6: IT to support human resource utilization has positive impact on extent use of IT for customer satisfaction

H7: IT to support quality results has positive impact on extent use of IT for customer satisfaction

H8: IT to support strategic planning process has positive impact on extent use of IT in quality results

H9: IT to support output quality assurance has positive impact on extent use of IT in quality results
44

H10: IT to support important innovation has positive impact on extent use of IT in quality results
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

H11: IT to support information and analysis has positive impact on extent use of IT in quality results

H12: IT to support human resource utilization has positive impact on extent use of IT in quality results

Chap No 4

Research design and Methodology

If I have seen farther than others, it is because I was standing on the shoulders of giants. Albert
45

Einstein The chapter research design includes overall map to be followed in order to collect the data and analyze the required data of the research. It also includes the type of research itself, the technique
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

to select the sample for the research, in short the overall methodology of the research. In the last it will discuss the process to analyze the data and also shows the accepting or rejection of the proposition.

Quantitative and Qualitative Methodology Qualitative Research The aim of the qualitative research is to get the more in-depth understandings of a particular situation. The category of qualitative research has many approaches and methods, for example interviews, visual methods, case studies, interpretive analysis, participatory inquiries and participant observation. This research aims to understand that how the teams interacts with each other within different cultural context. It does not seek to measure the relationship between the selected phenomenons or to offer any prediction.
46

It is the type of research methodology based on qualitative issues, facts and procedures about different variables. In qualitative research we designed limited numbers of issues before data collection. The researcher focuses to obtain the detailed and complete knowledge about the considered facts.

The researchers does not already certain about the required results whether it would be attain or not.

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

In qualitative research, the data would be collected normally on the basis of verbal and observational manners. In qualitative research, we require large amount of time, cost and evidences about the variables. The analysis of the qualitative data is different from person to person depends upon the researchers skills and perception.

Quantitative research For many years ago there has been long running debate among the researchers of social science concerning the best methodology to use in the research society. Basically, this debate focuses on which methodology is the more appropriate for the research qualitative or quantitative. The aim of the quantitative data is to collects facts and figures using the methods statistical analysis or social surveys. In short we can say that the quantitative methods translate the data into information.

The Quantitative research techniques There are three methods of quantitative research

1. direct measurement Companies need to measure their products or performance on regularly basis and firms select representative sample to get information and the data from representatives aggregated and grossed up to the complete market.

47

2. self-completion survey

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

This type of survey is carried out rationally though posting the questionnaire to the targeted respondents, coupled with some kind of benefits to motivate audience to response quickly and properly. Because of internet access researchers make this kind of survey by sending questionnaire on internet. And respondents can complete web based survey on-line which is easier for the respondents.

3. Interviewing Information needed in research is gathered mostly though interview with the targeted audience and the selection between alternative techniques depends upon trade-off between:

What is the practical work with respondents (either we have to show them anything) Cost and benefits Timeline for nodded information

Method of Interviewing Self-completion (post and internet) Face to face (in home) interview Telephone interview Street interview Hall test Mystery shopping

Following table highlights the main differences between quantitative and qualitative research
48

methods. Quantitative research Qualitative research

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Objective Survey Hard Abstract Fixed Hypothesis-testing Value-free

Subjective Case study Soft Grounded Flexible Speculative Political

Distinctions between quantitative and qualitative research methods (Silverman 1997)

49

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

50

Primary Source population:


Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Major Sources of data collection There are two major sources of data collection primary and the secondary source. In the primary source of data the researcher collect the data from the respondent through the different modes of data collection. In this empirical study the population or respondents of the primary data are the top quality managers of any organization specially firms that have been recognize from ISO with in sector of Pakistan. But due to time resource and access ability reason of whole population it is hard to collect data from all respondents. So sampling technique is selected for this empirical research study.

Secondary source: The secondary source of data include the research articles, journals, books, magazines, books and other related articles. The contribution of the past researches related to this empirical study would be helpful in this regard. We can easily understand the different dimensions through the past contribution. The comparison becomes very easy with this secondary data. In short the study is based on the mixture of both the source.

51

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Sampling of empirical study


Using the random sampling we select 140 organizations, especially those which were certified from ISO in Pakistan. And we collect the data from top quality management using a questionnaire which were used and developed by Ang et al., (1999). Quality managers were the most appropriate targeted respondent because they are more familiar with quality management practices and their results in shape of quality products. The research study was opratinalized through survey and interviews in which questionnaire was filed out by top quality managers. Most of the questionnaire was filed by quality experts but a little amount of questionnaire was carried out by quality management department representative in absence of quality managers. Using the previously mentioned key TQM dimensions found in the literature, a set of items was selected for each dimension in research questionnaire, to assess impact of information technology on dimensions of quality management. A seven-point Likert scale was used to measure each of the dimensions identified. They were anchored at the ends with `not at all and `maximum feasible amount. IT definition was given at the beginning of the questionnaire to ensure that respondents shared a common understanding of IT.

52

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Research Model

Strategic Planning Process Customer Satisfaction Output Quality Assurance

Extent of IT use

Leadership

Important Innovation

Information & Analysis

Quality Results

Human Resource Utilization

53

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Statistical methods:
The statistical methods which have been used in the proposed research study are: Descriptive statistics (percentage, descriptive) Correlation analysis (using: Pearsons correlation coefficient) Factor analysis Reliability analysis Linear regression analysis Computing variables (computing averages)

54

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

CHAP NO 5 Conclusion, Recommendation and Limitations

Research Findings:
After the long time effort, now the researcher is able to show the results or findings of the research which is the integral part of any research. The inferences made by the researcher would be useful for the other researchers and would represent the overall research project. The researcher reached the findings after getting and analyzing in-depth of the information provided by the respondents of the research study. The resultant prepositions of this study which were developed by the help of literature and tested in relation to the real facts provided by the top managers of firms.

55

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Factor Analysis of Leadership

Leadership items Formulate vision and mission Make their commitment to quality visible to staff Create quality as a way of life within your company Communicate quality values to staff Facilitate communication between top management and other staff Encourage staff involvement to improve work processes Empower staff for continuous improvement

Factor .603 .536 .658 .649 .541 .613 .536 35.138

Cumulative percentage of the variance explained (%)

Factor Analysis of Strategic planning process

Strategic planning process items


Identify strategic issues Analyze strategic issues Make strategic decisions Formulate strategic plans Document strategic planning

factor .710 .775 .730 .834 .539 52.492

56

Cumulative percentage of the variance explained (%)

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Factor Analysis of Output quality assurance


Output quality assurance items
Set up service quality standards Control work processes in the delivery of services Use quality tools such as flow charts, histograms and Pareto charts for quality control (Statistical Process Control) Improve services continuously Assess actual performance against established quality standards Document work procedures/processes Determine supplier quality Facilitate inter-organizational co-operation for service quality

factor .317 .387 .567 .555 .407 .357 .431 .416 42.854

Cumulative percentage of the variance explained (%)

Factor Analysis of Important innovations


Important innovations items
Create innovative work processes Implement innovations to improve service quality

Factor .816 .816 66.556

Cumulative percentage of the variance explained (%)

Factor Analysis of Information and analysis


Information and analysis items
Collect data about staff, customer and suppliers Collect data about work processes Maintain databases 57 Maintain quality information systems Produce comprehensive information that meets staff requirements Factor .746 .762 .797 .627 .749

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Allow staff to access information for decision making

.528 50.099

Cumulative percentage of the variance explained (%)

Factor Analysis of Human resource utilization

Human resource utilization items


Making information available to staff for carrying out their responsibilities Form work teams or quality improving groups Facilitate team-working to solve problems Solicit suggestions from staff for quality Improvement Provide feedback to staff on quality improvements Provide feedback to staff on quality Plan staff on quality-related skills Train staff for their contribution to quality improvements Train staff for their contribution to quality improvement programs

Factor .621 .620 .506 .795 .749 .720 .833 .658 .748 49.174

Cumulative percentage of the variance explained (%)

Factor Analysis of Customer satisfaction

Customer satisfaction items


58 Assess customer needs

Factor .869

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Measure customer satisfaction

.869 75.465

Cumulative percentage of the variance explained (%)

Factor Analysis of Quality results

Quality results items


Measure service quality Measure productivity Measure reduction in operational costs Monitor waste such as waiting, re-do work, and damage to equipment

Factor .709 .650 .711 .709 48.310

Cumulative percentage of the variance explained (%)

Factor Analysis of customer satisfaction & Quality results

customer satisfaction & Quality results items


Assess customer needs Assess customer needs Measure service quality Measure productivity 59 Measure reduction in operational costs Monitor waste such as waiting, re-do work, and damage to equipment

Factor .592 .420 .740 .766 .791 .742

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Cumulative percentage of the variance explained (%)

47.302

Variable & Correlation Matrix

variables

S.D

L.D

6.1092

.53551

.681

S.T

5.7157

.88832

.795

.339**

O.P

5.7304

.77493

.805

.402**

.572**

I.I

5.5821

.95513

.51

.372**

.474**

.569**

I.A

5.7024

.82883

.793

.464**

.433**

.744**

.577**

H.R

5.7992

.79006

.858

.492**

.584**

.664**

.601**

.689**

C.S

6.0893

.67661

.680

.372**

.215*

.231**

.431**

.397**

.387**

Q.R

6.0768

.6005

.641

.353**

.253**

.324**

.357**

.386**

.502**

.601**

C.S.Q.R 60

6.0810

.56528

.761

.381**

.265**

.321**

.425**

.432**

.510**

.824**

.948**

Note: **Correlation is significant at the 0.01 level (2-tailed)


Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

*Correlation is significant at the 0.05 level (2-tailed)


L.D = leadership; S.T = strategic planning process; O.P = output quality assurance; I.I = important innovation; I.A = information and analysis; H.R = human resource utilization; C.S = customer satisfaction; Q.R = quality results; C.S.Q.R = customer satisfaction and quality results

Regression Analysis:

Hypothesis

P Adjusted R

Standardized Coefficient B

H1: IT has positive impact on Leadership H1 a: IT to support leadership has positive impact on strategic planning process H1 b: IT to support leadership has positive impact on output quality assurance H1 c: IT to support leadership has positive impact on important innovation H1 d: IT to support leadership has positive impact on information and analysis H1 e: IT to support leadership has positive impact on human resource utilization H1 f: IT to support leadership has positive impact on customer satisfaction H1 g: IT to support leadership has positive impact on quality results
61 .000 . 108 .339 4.230 17.895

. 000

.155

.402

5.150

26.525

.000

.132

.372

4.710

22.185

.000

.210

.464

6.158

37.923

.000

.237

.492

6.641

44.106

.000

.101

.327

4.071

16.575

.000

.118

.353

4.437

19.683

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

H2: IT to support strategic planning process have positive impact on customer satisfaction H3: IT to support output quality assurance have positive impact on customer satisfaction H4: IT to support important innovation have positive impact on customer satisfaction H5: IT to support information and analysis have positive impact on customer satisfaction H6: IT to support human resource utilization have positive impact on customer satisfaction H7: IT to support quality results have positive impact on customer satisfaction

.011

.039

.215

2.585

6.682

.006

.046

.231

2.789

7.778

.000

.180

.431

5.612

31.498

.000

.152

.397

5.086

25.867

.000

.144

.387

4.937

24.374

.000

.356

.601

8.824

77.864

H8: IT to support strategic planning process have positive impact on quality results H9: IT to support output quality assurance have positive impact on quality results H10: IT to support important innovation have positive impact on quality results

.003

.057

.253

3.072

9.436

.000

.098

.324

4.017

16.139

.000

.121

.357

4.496

20.212

.000 H11: IT to support information and analysis have positive impact on quality results .000 H12: IT to support human resource utilization have positive impact on quality results

.143

.386

4.915

24.157

.246

.502

6.811

46.396

62

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Results

As this study shows the impact of information technology on total quality management, the findings of the research study indicate that the average responses of the respondents related to role of information technology in TQM was high scale of 4, which means that IT plays a critical role to support different dimensions of total quality management. Form the sample of 140 organizations, the average response of only 6 firms was between scale (4-5 moderate to high) which shows high influence of IT in leadership, and the remaining 136 firms were showing that the effects of information technology is equal to or greater then scale 5 (high) to support leadership. These finding shows that information technology is very important in top management leadership. Similarly, results indicate for IT to support strategic planning process, only 5 firms responses lies between scale of 3-4 (low-moderate) and 16 organization responses lies between scale 4-5 (moderate-high) and the remaining 119 companies were showing that IT support strategic planning at high level, responses fall between 5-7 (high-maximum feasible amount). And so on, average responses were on scale 3-4 (low-moderate) for output quality assurance 5 firms, important innovation 7 firms, information and analysis 8, human resource utilization 7, quality results 0 and customer satisfaction0 firms, results were on scale 4-5 (moderate-high) for output quality assurance 13 firms, important innovation 22 firms, information and analysis 7,
63

human resource utilization 12, quality results 6 and customer satisfaction 4 firms and the remaining firms were indicating that information technology have a significant impact on on above mention dimensions at scale of 5-7 (high-max feasible amount).
Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Research Limitations:
In the research the researcher has to highlights the factual data and for this purpose the investigator gather the details deeply about the core dimensions which are under consideration. As the very first initiative of this work the researcher faced some troubles or difficulties in his study. The researcher comes to know that it obliges a lot of work hard, ability, proficiency, and time in order to understand the related phenomenon. In the presence of all the troubles in this study the researcher tried to overcome with his enthusiasm of doing the research better and analyze the factual data in order to achieve the desired results. There are some complexities facing by the researcher and these are followings:

Researchers agree that this study is limited because it explores the influence of information technology on dimensions of quality management in one context. It can be explored in context of firm size, no of employees, services and manufacturing firms. Any research work requires a lot of time in order to achieve the research goals and objectives. For the understanding of the core dimensions of research demands to read the different literature related to the topic. The researcher asked to the respondents for the appointment and they give the time after a weak so the researcher spend a lot of time to just to fill one questionnaire. The data collection period take more than half time of the
64

whole research. The analysis phase also needed too much time because it is the phase in which the researcher pay full attention and try to increase the validity and reliability of

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

the research. The researcher has to complete its work within the given period by the department so because of this time constraints there can be flaws in this study. It is the case study research so it requires massive details from the respondents and also take time to the analysis of the data for this purpose the researcher visited the sites of the respondents two to three times. These visits incurred the financial cost, cost of effort, and also increase the cost of time so as a couple investigators all the costs had to pay. For this study the investigator has to read the massive literature like articles, books, journals, and other model thesis in order to correct implementation of the research. The cost also increased because the researcher uses the two sources of data collection is this study. Basically, this research was necessary for the completion of the researchers degree so because of the limited time and limited cost was there that is why it is conducted on in limited cities. So there is also the geographical limitation is there and the same study can be conduct in different areas of Pakistan and its boundaries can be increased. The researcher select the multiple companies for the purpose to explore the impact of information technology on dimensions of quality management but the sample was very small because there were two investigator for the completion of whole research. So it would be difficult to investigate the large sample, it is also includes in the limitation of the research. If there would be multiple investigators working in this study then it would decrease the cost and increase the internal validity of the research because more mind working together. The researchers uses the two primary sources to get the information from the respondents but still there were limitation or resistance to collect the data because some respondents avoid giving the actual data for proposed purpose. At the end of the research investigator suggested some future implications after facing the above limitations and resistance in different shapes.

65

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Further Implications of the Research:


It was impossible for the researcher to uncover all the phases related to the influence of information technology on quality management because there were some limitation and resistance which is mentioned above. The researchers agree that there are many aspects which may be further explore so this research can be the direction for any other researcher to contribute further about the same topic. It is hope of the researcher that the others will use this struggle in order to further proceed and will add the more strength to the findings of this study. Further Implications of the Research are following: The researcher select different sectors for data collection but it is agreement that sample is limited with respect to sectors a specific sector can be select to generalize the result to some specific population this will lead to better results. The other implication is that the researcher uses the small sample in his study for the analysis so the further study can be on the large samples. The researchers agree about analysis of research and assume that further detailed analysis can be used to expand and enhance the results of research. There is an opportunity for the others to carry out this research on the other places where still this research is not carry out by any researcher then the comparison of these two studies create the new opportunity for the next researchers.
66

Muhammad Sohail Email: Leolionarya@gmail.com | BS.Commerce(Hons) Dept.Of Commerce B.Z.U Multan

Вам также может понравиться