THE IMPACT OF TOTAL QUALITY MANAGEMENT PRACTICES ON ‎SUSTAINABLE ORGANIZATIONAL PERFORMANCE: THE MEDIATING ‎ROLES OF READINESS FOR INDUSTRY 4.0 SOLUTIONS AND ‎ORGANIZATIONAL CULTURE

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.‎