Dissertation Final (submitted)

DE MONTFORT UNIVERSITY
LEICESTER BUSINESS SCHOOL
Impacts of TQM on Firm’s Organic
Growth- A Case Study of Mitsumaru
Group (BD)
SM Kudrate Khuda
A dissertation submitted in part requirement for the award of
MSc Accounting & Finance
[September, 2010]

Impacts of TQM on Firm’s Organic Growth- A Case Study of
Mitsumaru Group (BD)
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Impact of TQM on Firm’s Organic Growth – A Case Study of Mitsumaru Group (BD)
by SM K Khuda
Abstract
This case study intended to develop the grounded theory regarding the impact and
relationships of TQM practice on firm’s internal growth in developing countries,
particularly in Bangladesh where different cultural settings. This case study also
investigated constrain relating to organisational culture and practice on TQM
implementation in Bangladesh. For this research purposes, an extensive literature
review has taken and developed the comparable criteria between TQM constructs (e.g.
employee satisfaction, customer satisfaction, process development, and management
approaches) and firm’s growth parameters (e.g. productivity, sales, net profits, and
market share), and necessary data has been collected through questionnaire and
company reports from Mitsumaru Group (BD) in Bangladesh. 100 questionnaires have
been sent in July 2010 from top management to general staffs within five departments,
e.g. sales, marketing, production, accounts and finance, and human resources
department and 37% of valid responds rate has been obtained. The results of analysis
show that TQM practice in Mitsumaru Group (BD) has significant positive impacts on
customer satisfaction, employee satisfaction, process development, and management
approaches. Result of the research also indicates that there are significant direct
relationship exist and have positive impact in between TQM construct employee
satisfaction and growth parameter productivity, between customer satisfactions and
sales, between customer satisfaction and market share. However, result of this case
study, on the other hand, identified that though TQM construct management
approaches may have positive impact on growth parameters, it is not directly relates
with any growth parameters; and although growth parameter net profit may affected by
all TQM constructs, it is not directly related with any TQM constructs. Result also
suggests that organisational culture and practice may appear as a great limitation on the
way of successful TQM implementation in Mitsumaru Group (BD) in Bangladesh.

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Acknowledgements
My cordial kind gratitude and thanks should be gone many people who have been
supporting me throughout my successful career. Some words are not enough to
express my feelings to thanks them. Firstly, it should be remember cordially the
contribution of my mother, family members, and relatives in my life. My thanks
should be gone to my beloved friend Faria Khan who always has been giving me
confidence and support. It should also be appreciated to the management, staffs,
and all associated people of Mitsumaru Group (BD) for giving me opportunity of
conducting this research.
This research may not be possible for me without helps, support, and advice from
my supervisor and also my course module leader Miss Alexandra Charles and other
teachers, administrative staffs of De Montfort University; my thanks and kind
gratitude should be gone to all of them. My thanks also should go to all of my class
mates and friends.

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Table of Contents
Chapter One: Introduction and Rationale
Introduction.................................................................................................................9
Rationale....................................................................................................................12
Research Objectives..................................................................................................17
Research Questions..................................................................................................18
Chapter Two: Review of Quality Principles and TQM Constructs
Introduction................................................................................................................19
Customer Focus........................................................................................................20
Leadership.................................................................................................................22
Involvement of People...............................................................................................23
Process Approach.....................................................................................................25
System Approach to Management............................................................................26
Continual Improvement..............................................................................................27
Factual Approach to Decision Making.......................................................................28
Mutually Beneficial Supplier Relationships................................................................29
Conclusion.................................................................................................................30
Chapter Three: Review of Quality Award Models
Introduction................................................................................................................31

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Malcolm Baldrige National Quality Award (MBNQA).................................................33
The European Quality Award (EQA)..........................................................................36
The Deming Prize......................................................................................................40
The Bangladesh Business Awards............................................................................43
Conclusion.................................................................................................................44
Chapter Four: Review of Integrated System of TQM with JIT and Six Sigma
Introduction................................................................................................................45
TQM and JIT Integrated System................................................................................46
TQM and Six Sigma Integrated System....................................................................48
Conclusion.................................................................................................................49
Chapter Five: TQM in Developing Countries
Introduction................................................................................................................50
Conclusion.................................................................................................................51
Chapter Six: Research Methodology
Introduction…………………………………………………………………………………52

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Grounded Theory…………………………………………………………………………..53
Research Design…………………………………………………………………………..54
The Survey………………………………………………………………………………….56
Sample Size………………………………………………………………………………...58
Research Questions……………………………………………………………………….58
Research Scope and Limitation.................................................................................60
Mitsumaru Group (BD) and Air Condition Industry in Bangladesh............................62
Chapter Seven: Analysis and Findings
Introduction................................................................................................................64
Analysis of Data from Questionnaires.......................................................................64
Analysis of Secondary Data.......................................................................................80
Conclusion.................................................................................................................82
Chapter Eight: Interpretation of Findings
Introduction................................................................................................................83
Involvement of People...............................................................................................83

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TQM Practice, Customer Satisfaction, and Sales......................................................84
TQM Practice, Customer Satisfaction, and Market Share.........................................85
TQM Practice, Process Development, and Productivity............................................87
TQM Practice, Employee Satisfaction, and Productivity...........................................88
TQM Practice, Management Approaches, Customer Satisfaction, Employee
Satisfaction, and Process Development…………………………………………………90
TQM Practice and Mutual Relationship between Organization and Outside
Entities………………………………………………………………………………………92
TQM Practice and Constrains....................................................................................92
Conclusion.................................................................................................................93
Chapter Nine: Conclusion and Recommendations
Conclusion.................................................................................................................95
Recommendations.....................................................................................................99
Reflective Statement.............................................................................................101
Appendices: Sample of Questionnaire...................................................................105
References.............................................................................................................112

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List of chats, diagrams, and tables
Figure 1: Distribution of respondents according to the departments........................65
Figure 2: Distribution of respondents according to years spent in Mitsumaru Group
(BD)………………………………………………………………………………………….66
Figure 3: Distribution of respondents according to the positions..............................67
Figure 4: Distribution of respondents according to awareness about TQM
implementation in Mitsumaru Group (BD).................................................................68
Figure 5: Distribution according to the impact of TQM on customer satisfaction......69
Figure 6: Distribution according to the impact of TQM on employee satisfaction.....70
Figure 7: Distribution According to the impact of TQM on process development.....71
Figure 8: Distribution according to the impact of TQM on management
approaches................................................................................................................72
Figure 9: Distribution according to the impact of TQM on mutual relationship
between organisation and outside entities.................................................................73
Figure 10: Distribution according to the impact of customer satisfaction on sales...74
Figure 11: Distribution according to the impact of customer satisfaction on market
share..........................................................................................................................75

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Figure 12: Distribution according to the impact of employee satisfaction on
productivity.................................................................................................................76
Figure 13: Distribution according to the impact of process development on
productivity.................................................................................................................77
Figure 14: Distribution according to the impact of management approaches on
customer satisfaction, employee satisfaction, and process development.................78
Figure 15: Distribution according to the impact of organisational culture and practice
on TQM practice........................................................................................................79
Figure 16: Increases of growth paramiters under TQM practice from 2007 to
2009...........................................................................................................................80
.
Figure 17: Impact of TQM on sales and market share in Mitsumaru Group.............86
Figure 18: Impact of TQM on productivity in Mitsumaru Group................................89
Figure19: Impact of management approaches on customer satisfaction, employee
satisfaction, and process development by TQM practice..........................................91
Figure 20: Internal growth model under QTM practice.............................................94

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Chapter One
Introduction and Rationale
Introduction
After 20 years of Second World War, management faced the most challenging task
within an organisation was productivity, in particular capacity of production
(Withers,B.E. et al., 1997). However, in today‘s globalisation era, this issue has
gone. Now consumers are more demanding and perceptive, so strategic planning,
comparative possibility and firm‘s growth are the most challenging issues in
operational activities of management. Growing demands by consumers for value, in
other words, more comparative quality against price have been forcing management
to develop quality in firm‘s performances. Thus, in order to capture share in global
competitive market, a most critical and challenging task of management to improve
quality in every aspect within optimal cost limits (Vasilash, 1995).
The total quality approach was represented by Japan‘s strategies which focused
more on developing in every operational process rather than depending on
inspection of products. Consequently, higher quality products were produced and
exported by Japanese firms at lower price which helps to capture global market (The
American Society for Quality, n.d.). During the 1970s and 1980s, Japanese products
emerged to catch attention of global market and got success which specially has got

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attention by US management in the area of quality issues. Followed by, US
management took initiatives and implemented various quality procedures and
methodologies in order to develop quality in products and thereby come back in
global market competition. Quality control, total quality management and just-in-time
were included in these initiatives. However, a greatest attention has been captured
about quality initiatives taken by firms that considered quality as a key factor to face
national and global competitiveness. Therefore, firms, practitioners, researchers and
institutions have acknowledged the role of quality (Withers,B.E. et al., 1997;Yusof,
1995).
By taking initiative as the leadership role by the most of The CEO of major U.S.
corporations moved forward to quality movement. More emphasis has been given by
the U.S. firms on approaches rather than statistics that press the all organisational
processes in quality improvement, recognised as Total Quality Management (The
American Society for Quality, n.d.). In 1950s, from the orientation of total quality
management has emerged in business practice and become prominent in early
1980s. ―Total Quality Control was the key concept of Armand Feigenbaum‘s 1951
book, Quality control: Principles Practice, and Administration, a book that was
subsequently released in 1961 under the title Total Quality Control‖ (Metha, 2008, p.
8). Followed by many other scholars have contributed to develop from total quality
control concept to total quality management (TQM) philosophy, e.g. Crosby,
Ishikawa, Deming, and Juran are the most prominent scholars in this area.

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However, in corporate management, firms‘ growth may be one of the prominent
issues as returns market recognition and firms achievement (Glancey, 1998). By
improving quality standard, a high quality of products and services offering could
help to increase productivity, sales, net profits, market share, and size of operational
activity ; therefore, capture new market share and increase profit which are easier
for organisational control, management control one of the significant issues that lead
to influence management to drive for organic growth( Wilson, 2010).
Over the last twenty years, many researchers have tried to find out the relationship
between Total Quality Management (TQM) and performance of firms. Mann and
Kehoe (1994, p.29) stated that ―TQM in the 1990s, organizations have sought to
refine their TQM methodologies and in particular to identify those quality activities
which most directly affect business performance‖. In literature, there are many
arguments have been taken place about impacts of TQM implementation on firms.
Prajogo and McDermott (2005, p.1101) ―Literature has noted numerous stories on
the problematic issues relating to the implementation process and how they affect its
outcomes‖. However, scholars have paid very small attention on the impact of
TQM on a firm‘s organic growth and organisational culture, especially in Southeast
Asia, where firms most likely depend on internal growth as well operating within
different cultural settings.
However, now days, besides U.S., Japan TQM practice is going more prominent in
developing countries in Asia, e.g. China, India (Woon, 2000). Nevertheless, It could

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be mentioned that ―Confucianism has been found to be useful for efficient
implementation of TQM in Southeast Asian countries‖ (Tan and Khoo, 2002 cited in
Kumar and Sankaran, 2007, p.176). Kull and Wacker (2010) have found that though
TQM practice has implemented, a certain cultural fact has exist in Asia which is one
of the significant elements of TQM practice in Asian countries. Further, Mohammad
and Rad (2006, p.607) discussed that ―Cultural change is essential for the successful
implementation of TQM. The relationships between organizational design and TQM
success may indeed be varied in a particular degree of cultural values‖.
Rationale
Having an influence of worldwide competitive business environment, government
bodies have tried to give confidence firms to get better quality by setting up
recognised certificates for firms getting precise quality standards. In this regards,
within TQM process, local culture should be adjusted and considered with employee
training and development, diversification of power, decision making process, group
problem solving, and receptiveness to customers. The development of different
products or services and processes may meet customer satisfaction through
continues improvement of employee and customer engagement, sharing information
and training and empowerment of employee by Successful implementation of TQM
(Withers,B.E. et al., 1997).

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Black and Porter (1996) carried out a work to find out the essential achievement of
the TQM concerns through members of the European Foundation for Quality
Management. They considerably agreed that customer relationship, supplier
relationship, developed communication system, consumer satisfaction orientation,
strategic quality management effective arrangement for quality improvement
measurement, functional quality forecast and altogether company quality culture
were the foundation of TQM achievement.
On the other hand, it seems that firms may not face any cultural problem by internal
growth considering the culture of a particular organisation. Organisational and local
culture may important issues considering producing innovative idea to developed
quality, implementing new philosophy for any kind of growth (Wilson, 2010;
Mazzarol, et al., 2009; Glancey, 1998). However, regarding internal growth of firms,
it would be easy to adjust with any kind of changes bring new philosophy like TQM,
because firms may get long time to prepare for adjusting with new environments. In
this regard, in developing countries, particularly in Bangladesh, where different
cultural settings and firms mainly depend on internal growth; internal growth
parameters e.g. increase in sales, profits, and capture market share, improvement in
employee efficiency, distribution and service networks and products ranges may be
influenced significantly by TQM implementation.

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TQM has the prospective to create economical benefit. Reed et al. (2000) argued
that creating economical gain not only depend on TQM but also on the setting
culture, company direction and the best fit among the strategy. Sousa and Voss
(2002) implied that further research should be carried out to formulate guiding
principle about what practices organisations should go through at diverse phase of
TQM development and what may be the best TQM practice operation cycle to arrive
at the expected out comes.
Kaynak, 2003; Fuentes et al., 2004; chong and Rundus, 2004; Sadikoglu, 2004; York
and Miree, 2004; Kannan and Tan, 2005; Ranhman and Bullock, 2005;Prajogo and
Sohal 2006; Nair, 2006 along with many scholars conducted their research to
understand the link between TQM and firm‘s performance. Some researchers
argued that performance could be different of the impacts of a TQM practice on
various types of firms. However, high or low performance of a firm may determined
by some certain TQM elements (Kaynak, 2003).
Ojanen et al. (2002, p120) discussed that ―the quality of the R& D process is one of
the critical success factors influencing the performance and success of a company‘s
R&D activities‖. According to a study by Cooper (1998), a high quality innovative
product procedure is the strongest general denominator surrounded by sky-scraping
performance of firms. The successful management of R&D necessitate suitable

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metrics for measuring the quality. ―TQM is much more than a number of critical
factors; it also includes other components, such as tools and techniques for quality
improvement‖ (Tari and Sabater, 2004, p.267 as cited to Hellsten and Klefsj . o,
2000).On the other hand, (Sousa and Voss, 2002 as discussed by Tari and Sabater,
2004, p.268), ―in some cases, the impact of TQM practices on a firm‘s performance
is weaker and not always significant‖.
However, Withers,B.E. et al. (1997) further discussed that firms have weaker
assurance in highest management that are not incorporated with TQM .TQM
operation appears to consider for significant development of dissimilarity that are
occurred within organisation. TQM incorporated firms are stable and noticeably
diverse from the firms that do not have TQM system. From the TQM standpoint,
higher management‘s insights of crucial tasks are for successful operation of every
quality programme.
On the other hand, York and Miree (2004) have found that there is no significant
relationship between practice of TQM and firms performance. They also stated that
before and after the winning of the Baldrige or state quality award, financial
performance of TQM companies were better than non TQM companies and a
covariance relationship exists rather that fundamental relationship between financial
performance and TQM practice. Moreover, many researchers, e.g. Sadikoglu, 2004;

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Prajogo and Sohal , 2004; 2006; have established that apart from having a directly
effect on quality performance, there is no important impact of TQM practice on the
operational performance, quality and innovation performance, and product and
process innovation performance. Lagrosen, (2000, p. 467) noted that TQM has
positive effects in increased in creativity and capability to innovative changes‘
implementation; however, ―only two negative effects were found: a temporarily
increased workload, and envy from the other clinics‖.
However, some scholars found that a number of subgroups of TQM are significantly
inter related; e.g., product innovation is more associated with leadership and people
management; similarly, product quality is significantly related to Customer focuses
and process management (Prajogo and Sohal, 2004). Moreover, a number of
researchers argued that financial performance, quality performance, operational
performance, customer satisfaction, product and process innovation, market share,
and firm performance are significantly positively associated with TQM practices
(Zehir and Sadikoglu, 2010; Lau et al., 2004; Sanchez-Rodriguez and Martinez-
Lorente, 2004; Douglas and Judge, 2001; Das et al., 2000; Samson and Terziouski,
1999).

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Research Objectives
Broad objectives:
The objectives of this research are based on the TQM practice and implementation
within organisational culture and practice in Bangladesh, these are as follows:
- To assess the impacts of TQM implementation on the internal growth of
Mitsumaru Group (BD) in Bangladesh.
- To assess the constraints associate with TQM implementation model within
organisational culture and practices in Mitsumaru Group (BD) in Bangladesh.
Therefore, this research would be able to extent and develop knowledge about
implementation of TQM in different organisational cultural settings and practices,
particularly in Bangladesh which could be helpful for firms in Bangladesh for
removing the constraints and successful practice of TQM philosophy.
Specific objectives:
Based on the broad objectives and the TQM implementation in Mitsumaru Group
(BD) in Bangladesh; and the major internal growth parameters, the specific
objectives are follows:
- To assess the impacts of TQM on sales of Mitsumaru Group (BD in
Bangladesh.
- To assess the impacts of TQM on market share of Mitsumaru Group (BD) in
Bangladesh.

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- To assess the impacts of TQM on productivity of Mitsumaru Group (BD) in
Bangladesh.
- To assess the impacts of TQM on net profits of Mitsumaru Group (BD) in
Bangladesh.
- To assess the constraints association with organisational cultural and
practices and its impacts to implement TQM in Mitsumaru Group (BD) in
Bangladesh as different cultural settings.
Research Questions
For this research, following two research questions have been proposed on the basis
of research objectives and empirical literature review:
- Does TQM have positive impacts on internal growth of Mitsumaru Group (BD)
in Bangladesh?
- What type of firm‘s growth model should be developed under TQM practice
that can be adjusted within organisational culture and practices of Air
Condition manufacturing industry in Bangladesh?

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Chapter Two
Review of Quality Principles and TQM Constructs
Introduction
Concept of quality principles of TQM have been introduced by Crosby, 1979;
Ishikawa, 1985; Deming, 1986; Feigenbaum, 1991; and Juran, 1993. In many
literatures, they discussed about different factors and principles of TQM. However,
there are some common principles have been found which are management
commitment, strategic process, employee training and involvement, improvement of
quality control and development process, and systematic approach in all activities
(Metha, 2008). Samson and Terziovski (1999, p.393) stated that ―Most
manufacturing companies in Europe, the USA, Japan and Australia have tried
working in some way on improving the following key components of TQM:
Leadership, Management of people, Customer focus, Use of information and
analysis Process, improvement Strategic and quality planning.‖
However, International Organization for Standardization (ISO) has introduced eight
quality management principles based on ISO 9000:2000and ISO 9000:2008 series
of quality management system standards; which are customer focus, leadership,
involvement of people, process approach, system approach of management,
continual improvement, factual approach to decision making, and mutual beneficial

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supplier relationships(ISO, 2008). Researched carried out by Sila and Ebrahipour,
2003; Claver et al.; 2003; Conca et al., 2004, suggested that these principles are the
most key elements of TQM (Zehir and Sadikoglu, 2010).
Customer Focus
Customer focus means that to fulfil customers‘ present and future expectations; even
try to exceed the expectations for long term value creation through producing and
delivering products or service (Dean and Bowen, 1994). ISO (2008) emphasised on
customer focus and described that ―Organizations depend on their customers and
therefore should understand current and future customer needs, should meet
customer requirements and strive to exceed customer expectations‖. Sadikoglu,and
Zehir (2010) commented that company success depends on serving the customer
and this can be achieved by top management commitment focusing the
organization‘s resources on satisfying customers and group effort in all aspects.
Customers are the final judge of quality standards, thus companies should consider
fulfilling the customers‘ requirement as a goal. Therefore, varieties course of actions
should be taken place to maintain customers‘ relationship closely, understand the
changing needs and cultures (Bullington et al., 2002).

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Customer satisfaction is a process to fulfil customers‘ requirements by providing
services or making products. As earliest discussion, customers are the final
determiner of quality, so these determined factors should be the scale of customer
satisfaction (Anderson et al., 1994). Company image could be ruined by unsatisfied
customers, therefore employees who maintain the customer relationship should give
emphasis more to satisfy customer. In contrasts, by satisfying customers, company
may create loyal and dependable markets. Having a good amount of satisfied
customers, company could keep continue its growth. Therefore, customer
satisfaction culture should be driven internally and externally and importantly
employees and suppliers should treat themselves as customers (Dean and Bowen,
1994).
There are many significant positive relation have been found among customer focus
and other organisational factors, e.g. financial performance, operational
performance(Nair,2006); customer satisfaction(Forza and Flippini, 1998); product
and service quality (Ahire and O‘Shaughnessy, 1998); and firm performance (Chong
and Rundus, 2004). Nevertheless, Rahman and Bullock (2005) stated that there may
not have any direct significant relation between customer focus and quality
performance. In addition, innovative improvement could lead to satisfy underlying
expectations of present and future customers for long term rather than customer
focus that may meet current need of existing customers through gradual
improvement of existing product and services.

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Leadership
Leadership is the key driver of an organisation to lead, utilise, and manage people
and resources, internal management control, and internal and external relationships
(e.g. customers, suppliers, workers, and social and governmental bodies) for fulfilling
the firm‘s objectives. Long term strategic decision making, participating for
accomplishment of planning, creative management style, employee empowerment,
and intelligibility of objectives are main characteristics of successful leadership
(Anderson et al., 1994).
The confident has been created by leaderships inside the organisation is significant
factor for his or her effectiveness. Organisational purposes and direction should be
controlled and leaded by leaders. Having commitment to give a great effort, leaders
motivate and organise themselves as well as people to achieve firm‘s objectives. As
to Deming, having clear visions and leading people towards the visions makes
leaders different from management (Gluckman and Roome, 1993).
There are many significant positive relation have been found among leadership and
others components of organisation in many literatures such as Nair (2006) financial
performance and operational performance; Kannan and Tan (2005) customer
service performance, and market share and competitiveness; Ahire and
O‘Shaughnessy (1998) product and service quality, and firm performance; Shieh and

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Wu (2002) project performance. Conversely, Choi and Eboch (1998) found that
financial performance is very slightly related to leadership.
Involvement of People
According to point 9 of Deming, every department has driven to achieve own goal,
therefore, there are many conflicts exist among various departments which resulted
some constrains to achieve common objectives of a firm. Works should be done by
co-ordinating among departments and people should give emphasis on
interdependent responsibility as a part of team rather than acting independently.
Similarly, in order to improve quality, people should play their role as a team that
may help to solve anticipated problems in production or service delivered as well.
Loss of time and extra cost may be incurred, if designing of teamwork and
coordination are not been done perfectly from the beginning (Hackman and
Wageman, 1995).

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However, joint effort takes place between managers and non-managers, between
operations, and between suppliers and consumers. Non-managerial workforce could
make important contribution when they are authorized to hold power, so employee
suggestions and involvement should be positive. Operational performances should
work as a squad in order to achieve a common objective and stop subunit
optimization (Dean and Bowen, 1994).
Nair (2006) has found that financial performance and firm performance are
significantly related to involvement of people, e.g. employee empowerment,
teamwork. In addition, Rahman and Bullock (2005); and Anderson et al. (1994) have
found that there is a significant relation among involvement of people, quality
performance and customer satisfaction. However, Fuentes et al. (2004) discussed
that there is a negative relation between financial performance and people‘
involvement. It could be argued that ―employees involve to improve the existing
system incrementally by focusing on the details of the current quality process instead
of on new ideas to change the current system of working substantially since they
have pre-designed production system, thus, involvement of people in TQM is not
compatible with re-engineering and breakthrough improvement‖ (Prajogo and Sohal,
2004 cited in Zehir and Sadikoglu, 2010: p.8).

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Process Approach
TQM is a systematic and scientific thinking process that gives emphasis on constant
development of performance in every department of firms in order to make available
the best value to consumers. Li, L. et al. (2008, p.570) discussed that ―TQM
necessitates organizational changes and seeks to improve all processes and every
business activity‖. Within business process, TQM set a profound weight on employee
engagement; judge and modify the people‘s approaches and performance. Being
committed to continuous learning, having endeavoured of accepted wisdom, being
enthusiastic to accept technology and innovativeness are the main factors of Total
Quality Management philosophy.
By setting up effective procedural and behavioural systems, management should
focus on functional process rather than the result or output in order to reduce the
time and labour loses, and reworks which incur extra costs. Anderson et al. (1994)
argued that customer satisfaction could be increased by reducing product or service
costs through process improvement. Forza and Filippini (1998) mentioned that The
TQM come up to maintain significantly the process controlling system to make sure
that these courses of action do not only perform normally but also the performance
of these courses of action do not make exertion for the future. Therefore, Firms
should give great attention in the controlling system of the functions of the processes
that produce the goods rather than to manufactured goods consistently controlled.

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Process management has a strong relation with quality performance (Forza and
Flippini, 1998); financial performance and firm performance (Nair, 2006); customer
satisfaction (Choi and Eboch, 1998). On the other hand, by reducing various wastes,
process management gives emphasis on improvement of process which could
improve efficiency as well as quality of exist products or services that is not
significantly related with innovation (Prajogo and Sohal, 2004).
System Approach to Management
In order to rationalising the tasks designing, people and technology, systematic
approach should be stabilised from top to bottom within organisation. Task design
could help to make fruitful the individual and team efforts. Moreover, an improved
information system should be implemented so that management can be aware and
take immediate action in case of any internal and external factors have changed. In
addition, system could help to make cooperation among all department and level; as
a result, it may increase internal and external confident (Gluckman and Roome,
1993). Sadikoglu and Zehir (2010) discussed that TQM is a systematic approach of

27
quality development with many dimensions and company-wide application for the
purpose of improving performance such as quality, productivity, and profitability.
Continual Improvement
From input to output, continual improvement should be assured by developing
process and methodology. It means that job has to be better in time to time and day
to day. Dean and Bowen (1994) stated that customers‘ expectations could be
satisfied by developing and coordinating methodology and improving process.
Moreover, Constant development should be measured in every department of
organisation such as employee performance, innovation performance and as a
whole firm performance put importance improvement of the engagement of
customers and suppliers in organisational process (Naor et al., 2008). Although not
meticulous, these aspects have frequently been measured the key factors of TQM
(Sila and Ebrahimpour, 2003; Claver et al., 2003; Conca et al., 2004). However,

28
Anderson et al. (1994) discussed that logics exist behind the continual quality
improvement is lower production costs comparing with quality which could help to
expand market share.
Many literatures suggested that continual improvement has a strong relation with
customer satisfaction, financial performance, and operational performance (Rahman
and Bullock, 2005; Fuentes et al., 2004). However, Rahman and Bullock (2005)
further argued that there is not a strong relation between continual improvement and
quality performance.
Factual Approach to Decision Making
Decision should be made based on factual data and information analysed. In order
to take action in internal and external changing circumstances, management need to
review and analysis information and data this may help to achieve organisational
objectives. Therefore, management should make sure a better system and analytical
approach within organisation to obtain relevant data and information at required time
in order to increase organisational efficiency in decision making process. Hackman
and Wageman (1995) suggested that hypotheses should be tested in work process

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by formulating critical and scientific methodology to evaluate and improve
performance.
Many literatures suggested that decision making process is highly related to
customer satisfaction, quality performance, operational performance, and firm
performance (Choi and Eboch, 1998; Cua et al., 2001; and Nair, 2006).
Mutually Beneficial Supplier Relationships
In order to reduce the costs and develop the quality, a strong coordination should be
implemented among firm, suppliers and buyers due to reduce internal conflicts.
Hackman and Wageman (1995) discussed that according to the point 4 of Deming,
in order to improve quality, suppliers should be selected on the basis of quality not
the costs.
Kannan and Tan (2005) have found that supplier management has a strong positive
relation with product quality and customer service. Moreover, Kaynak(2003) and
Nair(2006) have described that there are positive relation between supplier
management and inventory management, supplier management, operational

30
performance and firm performance. However, Market share and financial
performance are not strongly related to supplier management (Kannan and Tan,
2005).
Conclusion
After review of quality principles and TQM constructs, it could be summarised that
there are so many confusions among positive performance of these principles. In
addition, none of these principles has certain positive performance in all over the
world. The performance of any of these principles could be depending on
organisational internal factors, characteristics, objectives, strategies and
circumstances where they are operating. However, most of the scholars recognised
that these principles have a degree of positive impact on various components of
firms; e.g. customer focus has positive impacts on sales and market share financial
performance, operational performance(Nair,2006); product and service quality
(Ahire and O‘Shaughnessy, 1998); and firm performance (Chong and Rundus,
2004); financial performance, firm performance, quality performance, customer
satisfaction, and productivity have been strongly impacted by Process management
(Forza and Flippini, 1998; Nair, 2006; Choi and Eboch, 1998).

31
Chapter Three
Review of Quality Award Models
Introduction
From the late 1980s; many developed countries have set up quality award
programmes in order to chase and recognise quality and performance excellence
(Miguel, 2001). Having a scope for comparing and evaluating with national and
international standards, firms have been running to achieve for various quality
awards all over the world. A well set of factors, e.g. encourage systematic self-
assessment, prompt cooperation, stimulate sharing and distribution were to key
elements to influence many countries to set up national and internationally
recognised quality awards. Having competitive advantages of quality to improve
performance through self- assessment and benchmarking was the main significant
focus light of these awards (Ghobadian and Woo, 1996).
The concepts of the most prominent quality awards which are internationally
recognised have come up from the USA, Europe, Japan, Australia, and Canada e.g.
the Malcolm Baldrige National Quality Award (MBNQA) in 1999, the European
Quality Award in 1994; the Deming Prize of Japan in 1951; the Australian Quality
Award in 1993; and the Canadian Quality Award in 1989 (Ghobadian and Woo,
1996; Miguel, 2001; and Vokurka et al., 2000; Metha, 2008). Furthermore, ―Since,

32
the initiation of the Deming Prize in Japan, Malcolm Baldrige National Quality Award
(MBNQA) in the USA and the European Quality Award (EQA) in Western Europe,
several national quality awards have been established to stimulate systematic quality
improvement and to promote quality awareness in different places of the world‖ (
Mavroidis, et al., 2007, p.455). However, being encourage from the success of these
prominent Quality Awards, various initiatives have been developed in South Asia, for
instance, Rajiv Gandhi National Awards in India (1991), Bangladesh Business Award
in Bangladesh (2000). Mavroidis, et al., (2007, p.455) discussed that ―many
countries have modelled their award programs based on these three awards.
Nevertheless, the principles and model of total quality management is the main base
for evaluating of most of these awards. Only traditional quality control system or
service or product perfection may not be focused by these awarding bodies. Rather
than, focusing traditional way, they have put more emphasis on behaviour,
processes, and management activities that are main influencing factors for quality
improvement within an organisation. The end result of wide range of quality
improvement initiatives in process and human resources activities could be the
determined criteria of keystones of the quality awards models (Vokurka et al., 2000;
Ghobadian and Woo, 1996). Although, all of these quality awards models have
some common fundamentals, each of them has some limitations. Ghobadian and
Woo, (1996) further noted that ―The models underpinning the quality awards, like
most models, have limitations

33
Malcolm Baldrige National Quality Award (MBNQA)
In order to increase competitiveness among U.S by improving quality and quality
management practices, The Malcolm Baldrige National Quality Implement Act was
signed by President Ronald Reagan on august 20, 1987. Successful quality
strategies and benefits sharing, identifying the requirement of quality excellence, and
promoting quality awareness were the main objectives to introduce the Malcolm
Baldrige National Quality Award (MBNQA) (Vokurka et al., 2000). A number of key
principles of quality standards were introduced by The National Institute of Standards
and Technology (NIST), the administrative in charge of MBNQA. According to
criteria for Performance excellence framework 2009-2010, seven categories of
criteria for performance excellence has been formed, these are as follows:
1. Leadership: under this category, how organisation‘s top leaders‘ actions and
guide effect on organisation, how organisation does regarding governance systems
of organisation, legal, ethical and social responsibilities would be examined.
2. Strategic Planning: development of strategic actions and plans within
organisation would be examined under this category. If the environment changed,
how those actions and plans deployed, and its progress would be examined under
this category.

34
3. Customer Focus: for long term sustainability, this category examines the
strategies of customer management, customers‘ voice and response to use that
information, customer focus culture.
4. Measurements, Analysis, and Knowledge Management: this category
examines the processes of information technology, systems, analysis process,
review, and uses of review for performance improvement of organisations.
5. Workforce Focus: strategies, plans and actions to assess and utilise of
capability, engagement process, management process, and development process of
work forces would be examined under this category.
6. Process Management: work system and the development of key process for
implementation of work systems, and preparation for emergency would be examined
by this category.
7. Results: performance, improvement and out comes in all areas including
leadership, process management, workforce focus, and customer focus, financial
and market results, market competitiveness of organisations should be examined by
this category.

35
However, evaluation and guides for self assessment and required areas for
improvement within an organisation in order to improve and satisfy customers; retain
continuous improvement flows and improvement culture, MBNQA has been worked
like an audit framework. However, any specific process, programme or method does
not be provided by this model. Considering the fundamental values and
philosophies, the MBNQA model may be rather rigid like the European Quality
Award (EQA) (Ghobadian and Woo, 1996). MBNQA has given more emphasis on
results (e.g. 450 points in results out of 1000 points) rather than other important key
measures of an organisation (Performance excellence framework, 2009-2010). Conti
(2007, p.119) noted that ―The problem was that the Malcolm Baldrige Model was still
conditioned by the ―quality assurance syndrome‖, where conformity to the model was
the predominant judgment criterion. The customers‘ voice came a poor second‖.

36
The European Quality Award (EQA)
In 1991, the European Quality Award (EQA) was launched and managed officially by
the European Foundation for Quality Management (EFQM). Supporting,
encouraging, and recognising the development of effective TQM practice by
European firms are the main objectives of EQA (Vokurka et al., 2000; Ghobadian
and Woo, 1996,). Enablers and results are two parts of the EQA. The transformation
of inputs to outputs and outcomes of the business and facilities are driven by that
policies and process are distinguished as enablers. Impacts of the effective
implementation of the enablers out come on customers‘ satisfaction, people
satisfaction, and effects on business results and society. The elements of TQM
concepts including leaderships, policy and strategy, people management, resources,
and processes are attempted to represent by the EQA mode (Vokurka et al., 2000;
Ghobadian and Woo, 1996; Conti, 2007).
Gemoets,(2009) translated and described that according to the EFQM excellence
model 2010, number of significant improvements have been done within its
enablers and results parts as follows;
Development in Enablers criteria:
Leadership: More emphasised has been given on ethics of leadership as a face of
focusing position. As the drivers of an organisation, leaders‘ performance and
capability development should be measured including to engage with stakeholders,

37
practice of transparency and feed back to stakeholders. How the capability of
leaders‘ decision making effects during perceptive and forceful adjustment also be
included.
Strategy: given emphasis to clear focus on understanding the external and internal
environment, and sustainability‘ built into the strategy. The timely modification of
strategic choices adds business drivers to understand the direct link of processes to
results.
People: People engagement into process effectiveness and increase efficiency are
linked with capabilities used and future oriented alignment. Care, mutual support,
and work life balance have engaged people in the wider society by positioning
themselves as the communications and the actors.
Partnerships and Resources: given more emphasised on mutual benefits for long
term relationships with suppliers and other related parties, complete coverage should
be developed e.g. strategic decisions, application of technology, financial planning
and consistency and clarity.
Processes, Products and Services: as part of the management system, integrating
and optimisation are been emphasized essential activities to enhance the offering
value delivered and strengthening the life cycle of products and services for more
engagement of customers.

38
Development in results criteria:
Customer Results: Rather than just measurement, more emphasised given on the
impact the organisation has on perceptions.
People Results: strategic effectiveness particularly in the human resources
management part would be integrated with how people distinguish it.
Society Results: within strategy, clear direction should be given to support the
environmental and social aspects. It also would be clarified to consider impacts of
performance of specific external Society and stakeholder stakeholders on
organisation would be clarified and considered and the scope of results to be
presented.
Key Results: the strategic intent would be integrated with the field of measures may
focus upon enhanced and developed within an organisation.
Regarding to meet the output and outcomes goals of organisations, the model
recognises that a major role has been played by management in necessary
development of structural processes management and infrastructures. ―A higher
weighting (scoring) is given on both the impact on society and people management
criteria in EQA model. European directors recognize the need for their companies to
act within a social as well as an economic environment‖ (Mavroidis, et al., 2007,

39
p.456). The EQA has emphasised more on the important development of process
capability, planning and human resources. Conversely, performance measurement
may not only depend on financial results that have been considered in the results
side of the EQA model (Ghobadian and Woo, 1996; Mavroidis, et al., 2007; Vokurka
et al., 2000). However, Ghobadian and Woo, (1996, p.19) further noted that ―The
model is prescriptive in terms of the philosophy and values which it expounds, but it
does not stipulate any particular tools, methods, procedures, or practices‖.

40
The Deming Prize
In 1951, Union of Scientists and Engineers (JUSE) established the Deming Prize
(Union of Japanese Scientists and Engineers, n.d.; Ghobadian and Woo, 1996).
For the Deming Prize, approaches to quality management of applicant organisation
or divisions of firms need to meet their business environment and challenges by
developing effective quality management methods, implementation and practices. By
the Deming Prize examinations, organisations would be able to assess their present
condition; processes used which whether the activities are suitable in their
circumstances in line to fulfil organisations‘ present and future objectives (Union of
Japanese Scientists and Engineers, n.d). Within the Deming Prize, a set of
checklist contains ten primary factors which further divided into four to eleven
secondary factors. Equally weighted all of these factors of checklists clearly
emphasis on total quality control process of organisations. A checklist is also
provided for top management known as table III which fulfil two significant factions
e.g. first, emphasises on the involvement and realisation of top managements‘ needs
in QC development initiatives; second, a list is to be provided of what management
should to do (Ghobadian and Woo, 1996).
According to Ghobadian and Woo, (1996), the Deming Application Prize checklist for
senior executives evaluates the following six factors:

41
1. Understanding and enthusiasm: under this category, it would be examined
senior managements‘ understanding on the concept of quality assurance, reliability,
statistical methods; enthusiasm to use these concepts as well.
2. Policies, objectives and targets: it examines management‘s policies and long
term plan for QC development initiatives, measurement procedures have been
taken.
3. The organization, systems and human resources: organizational procedures
and structures for quality control , human resources, the role of top management for
in quality control management, allocation procedures of power, accountability and
responsibility review and improvement, policies, procedures and its application for
managing and support of external activities, and organizational education and
training systems would be judge within this frame.
4. Education, dissemination and thorough implementation: it would be
measured under this category that the educational policies related to QC
management, necessary systematic knowledge, expertises, equipments, and
administrative practice and methods.
5. Implementation: the budget for QC facilities development and maintain; the QC
development program implementation, conditions, functions, and social

42
responsibilities identification, measurement, review and evaluation would be
examined within this category.
6. Future policies, plans and measures: this category examines the future
policies, plans, management and measurement methods, uses of advance
technology, economic growth and business scope of firms.
Apart from the Deming Prize, continuous analysis and improvement are emphasised
by most of the models. The Deming Prize emphasises more on the organisational
quality management such as strategic plans, customer focus, modernised
processes, leaderships, human resource development. However, although quality
improvement through processes control has been more emphasised in the Deming
Prize, there is a relatively little lack exists on customer and market knowledge.
Ghobadian and Woo, (1996, P.17) also implied that ―The Deming Prize unlike the
European Quality Award and the Baldrige Award, is not competitive‖.
Business results have the greatest weight for the MBNQA, customer satisfaction for
the European Quality Award, organizational performance for the Canadian Quality
Award, and people or process for the Australian Quality Award. However, all of the
checkpoints in the Deming Prize are equally weighted.

43
The Bangladesh Business Awards
The Bangladesh Business Awards introduced in 2000 by DHL and Daily Star.
The primary objective to launch this awards to be a worthy partner of global
economy through creating excellence and competitiveness environment, well
discipline and innovative management; , increase in efficiency, high productivity.
The Bangladesh Business Awards are divided into four parts; which are Business
Person of the Year, Outstanding Woman in Bangladesh, Enterprise of the Year, and
Best Financial Institution of the Year (DHL, 2008).
According to DHL (2008), criteria of evaluation for Enterprise of the Year and Best
Financial Institution of the Year are as follows:
Innovation: company‘s plan, policy and innovation in products, services, and new
market, its expertise of Bangladesh base for accessing overseas markets would be
focused under this criterion.
Financial Performance/Productivity: profits, relation track between company age
and profit, growth, and productivity level would be considered by this criterion.
Company Management: Effectiveness of management style and approaches,
organisational structure, and harmonious relationships would be examined within this
category.

44
Contribution to the Community and Bangladesh's Development: A merit point
would be given under this category for company‘s contribution to the community and
Corporate Social Responsibility practice.
Conclusion
Although, every quality award model has some distinctive characteristics, all of the
major quality awards models have some common measurement scales to evaluate
TQM practice of firms. Moreover, some of these models also provide guidance that
could be influential factors to successful application of quality initiatives and thereby
to get the end results. Given differential emphasised on leadership and
management approaches and system, customer management, employee training
procedures and development, strategies and policies, evaluation procedures,
process management by all of these quality awards models may not carry equal
weight. For instance, development of process capability is more emphasised by the
EQA, on the other hand, MBNQA put emphasised on business results. However,
although these quality models carry a significant influence for forms to get market
attention and customers‘ confidence, within south Asian countries particularly in
Bangladesh, ISO certification and local quality award model have a great influence to
catch customers‘ attention that recognised the quality standards practice maintaining
by firms.

45
Chapter Four
Review of Integrated System of TQM with JIT and Six Sigma
Introduction
Over the past few years, just in time, supply chain management, total quality
management, and six sigma approaches have got numerous attentions in operations
and quality performance (Rao et al., 1996; McKone et al., 2001; Zu, et al., 2010;
Kannan and Tan, 2005). Some researchers implied that integrated approaches of
these philosophies may produce better performance than applying individually one of
them. Kannan and Tan, (2005, p. 153) noted that ―Just in time, TQM, and supply
chain management are sometimes viewed and implemented as if they were
independent and distinct, they can also be used as three prongs of an integrated
operations strategy‖. In addition, a significant value of an integrated operation
element and strategy has been represented by this kind of approaches which
contains an important strategic potential.

46
TQM and JIT Integrated System
An emergent fact is that organisations have got a great result that analysis and give
efforts in root of quality (Mohrman et al., 1995). Companies have comprehensively
used TQM with JIT incorporated quality programmes generate more efficiency, cost-
effective and competitiveness. Many researchers implied that IS0 9000 list shows
only some key quality programs firms could practise towards continuous perfection
of quality; firms that have put into practice JIT and TQM integrated methods have got
extensively recognized quality programs (Withers, et al., 1997).
Successful operation of TQM show the way to the progress of various courses of
actions or stuff to congregate or go beyond consumer satisfactions. Conversely, JIT
operation integrates quality control performance with every day activities and evades
the manufacturing of imperfect objects. Successful performance of TQM and JIT
could be a turning point on the pledge and support of top management (Rao et al.,
1996).
General value is the recognition of quality that the customers are the best evaluator
of the quality of the finishing commodities (Garvin, 1996). However, the fundamental
viewpoint of firms should be principles for processes perfections. Firms with
concrete functions and courses of action would be root focus point to develop the
quality of their goods and services. Thus, ―the IS0 9000 series, which regulates or
controls process quality rather than product quality, leads to quality consistency and

47
thereby, competitiveness‖ (Korane, 1993, Mahmoud et al., 1992 as discussed by
Withers, et al., 1997, p.210). However, Withers, et al., (1997) further discussed that
top management dedication to quality upgrading showed major dissimilarity for the
most important outcome and by sort of quality initiative in practice between TQM and
JIT.
On the other hand, the numerical results proposed that management approaches
could be upsetting significantly by the impact of TQM. In addition, JIT organisations
may essentially de-emphasise quality education comparatively to other phases of
this system of activity. In all companies, communication function encompasses a
central and key factor of both TQM and JIT organisational systems (Withers, et al.,
1997).
McKone et al. (2001) in some way look at the connection of TPM with JIT and TQM
when inspect the performance and impact of TPM. They discover that TPM has an
encouraging and important direct impacts as well as an indirect association in the
course of JIT and TQM with low down cost, high standard of quality and well-built
deliverance performance. Having a common goal to achieve firm‘s objective through
continual improvement and waste reduction, TQM have a fundamental similarity with
JIT (Schonberger, 1986; Nakajima, 1988; Ohno, 1988; Powell, 1995 as discussed by
Cua, et al., 2001). It is contend that safeguarding management might be the main
challenge facing firms that put into practice TQM and JIT. Similarly, the significance
is to be measured the incorporation of JIT, TPM, TQM and factory mechanisation
with employee participation (Cua, et al., 2001; Imai, 1998)

48
TQM and Six Sigma Integrated System
Some scholars believe that a TQM with Six Sigma incorporated system may produce
the best outcomes for the firms that have or not TQM. ―an organized and systematic
method for strategic process improvement and new product and service
development that relies on statistical methods and the scientific method to make
dramatic reductions in customer defined defect rates‘‘ (Linderman et al., 2003, p.
195). ‗‗TQM makes many of the same claims that Six Sigma makes and with some
justification‘‘ (Flott, 2000, p. 43). Schroeder et al. (2008) argued that Six Sigma refers
such a traditional quality management system to organise of the equipments and the
techniques and organisational construction that are not before seen.
Moreover, Six Sigma significantly presents ‗‗an organized, parallel structure to
reduce variation in organizational processes by using improvement specialists, a
structured method, and performance metrics with the aim of achieving strategic
objectives‘‘ (Schroeder et al., 2008, p. 5). It would be recommended that in order to
get an interactive result from quality development; Six Sigma should be incorporated
with TQM (Ferng and Price, 2005; Revere and Black, 2003; Ricondo and Viles,
2005; Yang, 2004 as discussed by Zu, et al. (2010).

49
Conclusion:
TQM approach more emphasis on develop the all courses of action relating to quality
in order to increase customer satisfaction Successful. Six sigma influences to reduce
variation in processes by statistical methods and performance metrics. JIT
emphasises more on every day quality development and cost reduction by reducing
imperfection into the production process. An integrated approach of TQM with either
JIT or Six sigma or both of them may be effective solution of quality constrains and it
could also lead to produce better performance than applying any one of these
methods. However, it may not necessarily able to prove and give the question
relating universal effectiveness of these approaches. Therefore, more research
should be conducted to assess effectiveness of this kind of integrated approaches
particularly in developing countries.

50
Chapter Five
TQM in Developing Countries
Introduction
Multi efficient aptitude boost labour efficiency and these could be achieved through
training. Any progress in labour efficiency through training might not be enough cost
effective for firms in many developing countries, while the employment of labour
costs may be noticeably low compare to the training costs. ―Productivity is affected
from the level of the automation used. Low labour costs together with the high costs
of the imported technology discourage investments towards automation‖ (Oral et al.,
2003, p.855).
Oral et al. (2003, p.855) further mentioned that ―The relationship between the
managers and the subordinates are characterized by low trust, with the latter
avoiding disagreement and preferring to be directed by the manager‖. Singh (2000)
argued that Training is a requirement to transform the outlook of the employees
about innovative philosophy systems like TQM. However, the vital issue that should
not to be overlooked is that, most training systems have been come up from the
West, and might not be suitable for other cultural and environmental settings. In
addition, research should be carried out to find out that how this system fit perfectly

51
in developing countries. Still it may be questionable that how is it possible to
implement all of these philosophy or do they fit in developing countries?
Conclusion
Empirical study has suggested that many scholars have worked on TQM to approve
quality and therefore firm‘s performance. Most of these endeavours has concerned
on the firms in developed countries. These firms are producing large quantity
products. However, there are very small amount of research have been carried out
by scholars that what is the outcomes of TQM especially in developing countries
where is different cultural settings, where companies mostly depend on internal
growth. Although, having cheap labour, in many developing countries, it may be a
significant concern to survive in local and global market under free market concept
because of being smaller volume with lower productivity; having lack of quality,
consequently, incurring high costs. To resolve these problems, it seems that further
research should be conducted on implementation of TQM and its impacts on organic
growth of a firm; specially firms of developing countries.

52
Chapter Six
Research Methodology
Introduction
The purpose of this study is to assess the impacts of TQM on internal growth of
Mitsumaru Group (BD) in Bangladesh. The constraints of TQM implementation in
Mitsumaru Group (BD) in Bangladesh, where different organizational cultural setting
and firms are more likely depend on internal growth are to be identified and thereby
developed the general theories by investigation throughout this study. Furthermore,
derived from the basic aims and objectives of this research, successful achievement
of research would be depending on selecting an appropriate methodology. However,
research design is discussed in this chapter which distinguishes the necessary data
collection procedures and uses to provide appropriate evidence and support the
theories of this work.
In addition, adequate answers to the research questions would be provided by this
research design. Moreover, another significant aim was to assess a few pre-
conceived notions on the constrains of TQM Implementation faced by Mitsumaru
Group (BD) in Bangladesh reported as an outcome of literature review and also
prove some insight into the TQM constructs influencing the internal growth of

53
Mtsumaru Group (BD). An integrated method (mix of quantitative and quantitative
methods) would be used for conducting this research.
Grounded Theory
The literature related constraints to assess the impacts of TQM on internal growth of
firms within different culture specifically in South Asia has been summarized in
earlier chapter. It is suggested that the impacts of TQM on internal growth identified
from the research undertaken for this paper are mostly internal. From the literature
review, the most critical TQM constructs e.g. customer satisfaction, employee
satisfaction, process development, and management approaches and firm‘s growth
parameters e.g. productivity, sales, net profit, and market share have been identified
for this research to develop and determine the underlying grounded theories
regarding impacts and relationships between TQM constructs and growth
parameters. The impacts of TQM on internal growth often lie in the firm‘s ability to
match its goals and resources to the opportunities and threats presented by the
organizational culture and practices. In this context, the major growth parameters
e.g. sales, market share, employee productivity and net profit made the management
able to assess the impacts of TQM on internal growth.
Literature review on the impacts of TQM on internal growth of firm‘s indicates that
the constraints faced by firms are many and complex, and a number of studies using

54
a variety of research methodologies and techniques have attempted to examine
them (e.g. Kaynak, 2003; Fuentes et al., 2004; chong and Rundus, 2004; Sadikoglu,
2004; York and Miree, 2004; Kannan and Tan, 2005; Ranhman and Bullock, 2005;
Prajogo and Sohal 2006; Nair, 2006). However, a lack of consensus amongst
researchers exists in literatures regarding to importance of different factors. As a
result, constraints to implement TQM in firms and its impacts on internal growth are
ambiguous, thus presenting an image of the firm as being prey to forces beyond its
control.
Research Design
The five specific research objectives are employed to address by the primary
research. A survey research method has been undertaken. A survey generally could
be understood as primary data collection method by communicating with sample.
Collecting primary data, congregating data, and assembling data are the common
objectives of driving for survey; in particularly needs for ongoing research. Moreover,
in order to eliminate bias where possible, survey also applies within a repetitive
sample of the population (Zikmund, 1996). However, some researchers have argued
that none of individual method is enough to conduct an empirical research in any
area. ―Study of budgeting in the nationalised jute industry in Bangladesh is a good

55
example of an attempt to address all three validity issues in a systematic manner
through between-method triangulation‖. (Hoque and Hopper, 1994; 1997 cited by
Modell, 2005, p.240)
Behind the rationales is to choose survey method that it is easy to get access into
information which also could provide accurate data about the facts within short time
frame; also financially economic and efficient (Zikmund, 1996). The survey
instrument adopted was questionnaire. The questionnaires ware designed carefully
taking all the relevant factors outlined in the literature review and objective sections.
Within the questionnaire, every question was two parts; the first part was closed end
for expressing specific answer of the question and the second part was open for
expressing respondents‘ logic and explanation. However, annual accounting and
financial data from the year 2007 and 2009 and industry data also has been
collected and used as secondary data to compare with the result of analytical
findings from primary data.
The research‘s focus is:
- To assess the impacts of TQM implementation on the internal growth of
Mitsumaru Group (BD) in Bangladesh.
- To assess the constraints associate with TQM implementation model within
specific organisational culture and practices in Bangladesh.

56
To assess the impacts and relationship of TQM constructs on firm‘s internal growth,
as growth parameters impact on sales, net profits, market share, and employee
productivity would be used from 2007 to 2009 taking 2007 as the base year.
Impacts of TQM on firm‘s internal growth has either positive, or no impacts/neutral,
or may having experienced negative impacts in some components, impacts
predicted in the short-term (Lagrosen, 2000;Prajogo and Sohal, 2004; Zehir and
Sadikoglu, 2010; Douglas and Judge, 2001; Samson and Terziouski, 1999). The
sample for survey has been chosen from top management and five departments of
Mitsumaru Group (BD) e.g. sales, marketing, production, accounts and finance, and
human resources where TQM has been implemented for data to be consistent in
analysis and findings.
The Survey
The introduction describes the salient features of the design and conduct of the
survey and the characteristics of the sample respondents in terms of their job
responsibility within the organization in general and association with TQM
implementation in particular, their involvement in organization reporting.
The survey addressed:

57
· To employ this framework to analyze empirically, the limitations and
constraints upon organizational culture and practices to implement TQM in
Mitsumaru Group (BD) in Bangladesh;
· To use the results of the theoretical and empirical research programmers to
evaluate policy proposals on a range of issues affecting the successful TQM
implementation and its outcomes in Mitsumaru Group (BD) in Bangladesh.
Respondents were asked their views on TQM implementation and impacts on
internal growth; general characteristics of the impacts, where the questions were
related to the strategy, management activities and operational actives related to
quality improvement initiatives of the groups and how they / firm affects by TQM
implementation and ways how to overcome the challenges they face in
implementation of TQM. Other section covered: factors affecting to TQM
implementation in employees‘ productivity (designed to help with the understanding
of principal factors of TQM which affect the improvement of the productivity by using
their efficiency); sales (questions on the role of TQM in improvement of customer
satisfaction); market share (intended to explore the role of TQM to capture market for
long term growth); and accounting and finance (designed to obtain some basic
financial information about the net profit, production costs and units, and sources of
finance available to the business related to impacts of TQM implementation).

58
Sample Size
A total of 100 employees were initially considered for this research including 6
employees from top management, 9 employees from managerial level, 16
employees from team leader, and 69 employees from general staffs within five
departments. The questionnaires were distributed in Sales department 20 copies,
Marketing department 20 copies, Production department 20, Accounting and
Finance department 15 copies, HR department 15 copies; and 10 questionnaires
were sent to top management, e.g. chairman, managing director, directors. They
were sent questionnaires in July 2010. However, a total of 39 filled-in questionnaires
were received. 2 questionnaires were not considered in the analysis because they
were not filled-in properly and completely. So, finally the number of valid sample size
stands at 37 for carrying out analysis having a valid response rate of 37%. The
criterion used for selecting sample employees was that they have working for a long
time in Mitsumaru Group (BD) and closely involved with TQM implementation. Also it
has been considered carefully that sample employees represent the economic,
cultural and ethical characteristics within the group.
Research Questions
Before designing the questionnaire (please see appendix 1), a wide-ranging
literature review was undertaken to identify the key issues related to this research.
The key issues are impacts of TQM on internal growth of TQM implementation in

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firms which are identified as strategic process, systematic approach, management
commitment, improvement of quality control and development process, and
employee training and involvement of a firm (Terziovski, 1999; Zehir and Sadikoglu,
2010;. Sila and Ebrahipour, 2003; Conca et al., 2004; Metha, 2008).
The constraint of TQM implementation in firms in South Asia have identified and
summarized from the literature review is organizational culture and practices,
specifically in South Asia (Kull and Wacker, 2010). The issue has been come into
view is the level of significance that organizational culture and practice in South Asia;
particularly in Bangladesh which are more incorporated with TQM implementation
that could affect and make constraint to successful TQM implementation program, or
could be affected by TQM implementation.
The questionnaire was developed to measure variable of interest. It was divided into
three sections. The first section-A requires the respondents to address general
information about their job responsibility and understanding about TQM. The second
section-B requires the respondents to indicate the impacts of TQM implementation
on internal growth of Mitsumaru Group (BD). It requires the respondents to indicate
their views on the impacts on sales, market growth, net profits, and productivity.
Respondents also needed to address the issues relating to constraints to TQM
implementation e.g. organizational culture and practices in section C.

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Research Scope and Limitation
Research Scope:
Mitsumaru group (BD) is locally well known Air Conditioner manufacturer and one of
the growing firms in Bangladesh which introduced TQM implementation program in
2007 within its fiver departments, e.g. Sales, Marketing, Production, Accounts and
Finance, Human Resources department. It also has well experienced employee
forces. All of these criteria are initially able to fulfil the requirements for the research.
However, a good amount of study was also undertaken on the industry culture,
operation and business, in which Mitsumaru operates. This helped developing the
questionnaire; identify the relevant industry data for analysis purpose.
Research Limitation:
Although having a great scope to conduct this research, there are some limitations
incorporated during driving this research, these are as follows:
- The time limitation to conduct the research.
- There is a lack within firm to maintain necessary records.
- Hiding mentality of management about the true profit.

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- Any quantitative statements would be required a large and statistical study
for which, specific to constraints of time and resources, this research could
not afford.
- Internal growth of the firm would possibly a result of multiple factors –
TQM is only one of them. The expected outcome of the analysis would not
identify the fare share of TQM in the overall growth of the firm. To know
this fare share a comprehensive research including other issues affecting
the growth would need to be undertaken on same set of data, issues,
environment, time and controller.
- An accurate growth rate of TQM implementation would only be possible
when the other factors leading to firm‘s growth would be possible to keep
constant and be used as a controller. In really this would never be
possible.

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Mitsumaru Group (BD) and Air Condition Industry in Bangladesh
Mitsumaru group (BD) is locally well known Air Conditioner manufacturer and one of
the growing firms in Bangladesh. Mitsumaru group (BD) has been operating from
1994 in Bangladesh. Mitsumaru is a brand name of air-condition which catches
customers‘ faith and confident. It has more than 350 employees in various
departments. Mitsumaru Group (BD) is manufacturing all kinds of air-conditions, and
also involves with installation and after sales services. Mitsumaru Group (BD) has
tried to diverse business portfolio through investing in diverse sectors like properties,
chemicals, powder coating colours consists, mineral water plant, restaurants
business.
However, having favourable weather and environmental conditions, air condition
business is one of the fastest growing industries in Bangladesh. According to Dhaka
Chamber of Commerce and Industry, an increasing buying capacity and changes in
life style of middle income population in Bangladesh have made a great opportunity
for air condition manufacturing and marketing industries. Total 23 air condition
manufacturing and marketing companies are operating their business in Bangladesh.
Nevertheless, more than 50% market share has been captured by few leading
companies like Mitsumaru, Mitsubishi, Rangs, and General (DCCI, 2009).
The growing competition has forced management of Mitsumaru Group (BD) to take a

63
great drive for quality that could help to retain present market share and growth,
access new market, satisfy present and future customers. In this regards, in 2007,
board of Mitsumaru Group (BD) has agreed to implement Total Quality Management
within its five departments, e.g. sales, marketing, production, accounts and finance,
and human resources (Mitsumaru Group (BD), 2008).

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Chapter Seven
Analysis and Findings
Introduction
The analysis and finding of questionnaires and secondary data would be done in
this section. There are total three sections in questionnaire. The first section was
related to general information about employment and knowledge about TQM of
respondents. The second section was releted to impacts of TQM practice in
Mitsumaru Group(BD) and firm‘s growth; and the third section was about impact of
organisational culture and practice on TQM implementation within Mirtumaru
Group(BD). For the analysis, various technics would be applied, e.g. pie chat,
column chat, and table.
Analysis of Data from Questionnaires
Department:
Here the respondents were asked in which department he/she is employed. The total
number of respondents were 37 and the valid respones rate was 37% which is a

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good response rate for carring out this research . The figure-1 has described that the
questionnaires were collected from five departments; Sales 35%, Marketing 19%,
Production 22%, Accounting and Finance 11%, and 13% from HR departments
which were the number of respondents 13, 7, 8, 4, and 5 accordingly.

66
Employment Years with Mitsumaru Group (BD):
Respondents were asked about their service periods with Mitsumaru Group (BD).
Figure-2 has expressed that from 1 to 5 years were spent by 49% respondents, 6 to
10 years were spent by 32% respondents, and 19% respondents were above 10
years with Mitsumaru Group (BD). A long and great career progression of
respondents have been indicated by these figure.

67
Position:
Figure-3 indicates that the percetages of response rates from various postion holding
by respondents which were 8% from top management, 16% from managerial level,
22% from team leader, and 54% from general staffs.

68
Awarness about TQM Implementation:
Respondents were asked about their awareness on TQM implementation in
Mitsumaru Group (BD). Figure-4 shows that a mejor portion of respondents ara
aware about TQM implementation; the number of percentage is 97, where as only
3% respondents are not aware about TQM implementation in Mitsumaru Group
(BD).

69
Impact of TQM on Customer Satisfaction:
By this question, respondents were asked about positive impact of TQM practice on
customer satisfaction in Mitsumaru Group. Figure-5 represents that 76% of
respondents replied yes, 13% of respondents replied no, and 11% of respondents do
not have any idea. Respondents who think TQM have positive impact on customer
satisfaction argueed that by implementing TQM, Mitsumaru Group (BD) has been
able to reduce the errors in every sector manufacture to sales. So customers are
getting better service, quality products and value of their money. After
implementation the TQM, firm‘s management has become more skilled who have
vast knowledge about products; dealing with customer queries swiftly and efficiently,
therefore has managed to boost customer satisfaction by boosting quality in every
aspect.

70
Impact of TQM on Employee Satisfaction
Respondents were asked in this question about positive impact of TQM practice on
employee satisfaction in Mitsumaru Group (BD). Figure-6 expresses that 62% of
respondents has been recognised that TQM has positive impact on employee
satisfaction, whereas, 24% and 14% of respondents says ―no‖ and ―unknown‖
respectively. 62% of respondents who believe that TQM has positive impact on
employee satisfaction give opinion that TQM has allowed Mitsumaru Group (BD) to
offer its employees top management leadership & employee empowerment in
several stages of the organisation, give positive feedback, good reward and step up
system which in returns have improved employee satisfaction over the years.

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Impact of TQM on Process Development
In this question, respondents were asked about positive impact of TQM on process
development in Mitsumaru Group (BD). Figure-7 shows that 65% of respondents
believe TQM has positive impact on process development; they explain that TQM
enabled Mitsumaru Group to accomplish its delivery of products through various
processes in right orders by inventing of new ways to work for reducing errors and
improving quality. As the ultimate goal for firm is to provide better quality products
they had to ensure that all the processes involved in that are improved. On the other
hand, only 13% of respondents have given their opinion that TQM does not have
impact on process development; 22% of respondents have said unknown.

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Impact of TQM on Management Approches
Respondents were asked about the positive impact of TQM practice on management
approaches in Mitsumaru Group (BD). figure-8 shows that 67% of respondents has
said TQM has positive impact on management approaches, whereas, 22% of
respondents has said TQM does not have positive impact on management
approaches and 11% of respondents does not have any idea about it.
67% of respondents who believe TQM has positive impact on management
approaches explained that because mmanagement approach has been used within
Mitsumaru Group since the implementation of TQM which had an increased
productivity effect on managers in terms of their departmental performances;
therefore, managers are more inclined to think from a customer perspective

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Impact of TQM on Mutual Relationship
In this question, respondents were asked about the positive impact of TQM practice
on mutual relationship between organisation and out side entities. Figure-9 shows
that 59% of respondents has said yes and explain that TQM has helped gain
employee satisfaction, suppliers satisfaction, environmental organisations
satisfaction, government satisfaction in term of quality for Mitsumaru Group (BD)
which in return elevated the level of customer satisfaction by providing good quality
of product/services and the overall effect is increased profitability for the company to
deliver good value for stakeholders‘ investment.
Whereas, 19% of respondents has said TQM does not have positive impact on
mutual relationship between organisation and outside entities and 22% of
respondents does not know any thing about it.

74
Impact of Customer Satisfaction on Sales
Respondents were asked about the positive impact of customer satisfaction on sales
in this question. Figure-10 describes that 87% of respondents beleive customer
satisfaction has positive impact on sales, where as only 8% and 5% rof respondents
have said no and unknown accordingly. 87% of respondents who has said customer
satisfaction has positive impact on sales explained that sales has increased because
TQM practice has been forcing Mitsumaru Group (BD) to improve customer
satisfaction by delivering quality products which helps to increase confident and faith
of customers; therefore, helps to increase a number of fixed customers for
Mitsumaru Group (BD).

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Impact of Customer Satisfaction on Market Share
In this question respondents were asked about the positive impact of customer
satisfaction on market share. Figure-11 shows that 65% of respondents has said
yes and explained that customer satisfaction has increased sales and increased
profitability for Mitsumaru Group (BD) and therefore provide solid base, consistent
growth for the company over last three years which later helped gain increased the
market share. On the other hand, only 13% of respondents have said customer
satisfaction does not have positive impact on market share and 22% of respondents
have said ―unknown‖.

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Impact of Employee Satisfaction on Productivity
Respondents were asked about the positive impact of employee satisfaction on
productivity in this question. Figure-12 shows that 78% of respondents has said
employee satisfaction has positive impact on productivity, whereas, 8% of
respondents has said employee satisfaction does not have positive impact on
productivity and 14% of respondents has said ―unknown‖. 78% of respondents who
believe that employee satisfaction has positive impact on productivity explain that
satisfied employees have proven to be a great success of TQM particularly increase
in productivity by increasing employees‘ efficiency, making an ideal working
environment including training, idea sharing, innovativeness, and employee benefits
in Mitsumaru Group (BD).

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Impact of Process Development on Productivity
In this question, respondents were asked about the positive impact of process
development on productivity. Figure-13 shows that 67% of respondents believes
process development has positive impact on productivity and said yes, whereas,
22% of respondents has said process development does not have positive impact
on productivity and 11% of respondents has said ―unknown‖. 67% of respondents
who believe that process develoment has positive impact on productivity explain that
ensuring quality product services to the customer through TQM require process
development while implementing. Current employee and customer satisfaction rate
along with sales growth provides farm evidences for processed being developed
having positive impact on Mitsumaru Group.

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Impact of Management Approaches on Customer Satisfaction, Employee
Satisfaction, and Process Development
Respondents were asked about the positive impact of management approaches on
customer satisfaction, employee satisfaction, and process development. Figure-14
descrives that 70% of respondents has said yes and explained after starting of TQM
implementation in Mitsumaru Group (BD), productivity, sales and market share have
increased because customer satisfaction, employee satisfaction, and process
development have been effeceted positively by management approaches under
present TQM practice.
Whereas, only 11% of respondents has said, management approaches does not
have positive impact on above factors and 19% of respondents has said ―unknown‖.

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Impact of Organisational Culture And Practice on TQM Practice
In this question, respondents were asked about the impact of organisational culture
and practice on TQM implementation in Mitsumaru Group (BD). Figure-15 shows
that 43% of respondents has given thier opiniton ―positive impact‖, whereas, 38%
and 19% of respondents have said ―no impact‖ and ― negative impact‖ accordingly.
Respondents who believe organisational culture and practice have positive impact
on TQM practice in Mitsumaru Group (BD) explained that increased employee
satisfaction have helped retain increased profitability by achieving customer
satisfaction. This gives Mitsumaru Group (BD) more opportunities to get involved
with the society where they are operating and contribute more sincerely as a leading
corporate citizen in Bangladesh.
On the other hand, 19% respondents who think organisational culture and practice
have negative impact on TQM argue that TQM force to practice highly professional
culture that contradict with local culture of developing countries as Bangladesh

Dissertation Final (submitted)

Dissertation Final (submitted)

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