THE IMPACT OF TOTAL QUALITY MANAGEMENT PRACTICES ON SUSTAINABLE ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLES OF READINESS FOR INDUSTRY 4.0 SOLUTIONS AND ORGANIZATIONAL CULTURE
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An Najah National University
Abstract
The manufacturing sector plays a significant role in supporting the Palestinian economy despite operating under a lot of political tensions and limited resources. The objective of this study is to investigate the impact of total quality management (TQM) practices on the sustainable organizational performance (SOP) with the existence of two mediating variables: the readiness to adopt the fourth industrial revolution technologies (I4.0), and the organizational culture (OC). A quantitative research method was used; the study questionnaires were distributed to people in senior management roles in manufacturing companies in several areas of the West Bank region in Palestine. The final response was 151 valid responses, using the Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyze the measurement and structural models, and to test the proposed hypotheses. The results indicate that the perception of the SOP is high, and the levels of implementation for both the TQM and OC are also high, while the I4.0 readiness is moderate. Additionally, the results reveal that applying TQM has a significant positive impact on SOP, directly and indirectly through the mediating effect of OC, validating its role of mediation. This means that the Palestinian manufacturing companies that provide a work environment that encourages teamwork and support are better able to improve SOP. On the contrary, it reveals that although there is a direct and strong impact of TQM on I4.0 readiness, the latter does not affect SOP, either directly or indirectly. The study enriches theoretical implications about applying TQM, highlighting OC as a strong mediator for SOP, and practically helps policy makers by providing them with practical ideas that may help in supporting culture and also improving SOP through its three pillars: the economic, environmental, and social.