On adopting quality orientation as an operations philosophy to improve business performance in banking services
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 11 October 2011
Abstract
Purpose
This paper seeks to study the impact of adopting quality orientation as a business operations philosophy to enhance a firm's performance. Specifically, it aims to identify various indicators that make up a quality orientation philosophy, and to research their role in improving business performance in the banking sector of the service industry.
Design/methodology/approach
The paper surveyed retail banking firms for this study, and used path analysis and structure equation modeling (SEM) to develop the study model. This model was tested to develop the process by which quality orientation philosophy, if adopted, can impact a business's performance.
Findings
Results indicate that specific indicators of quality orientation, when operationalized as a business philosophy, can enhance a banking firm's performance. This study also provides an insight for managers as to the process of adopting quality orientation philosophy in their businesses.
Research limitations/implications
Research was conducted on a specific sector of service industry: the banking sector. The relatively small size of the study sample may impact the outcome of research applicability in some large businesses. However, the research does provide valuable insights as to how other businesses can adopt quality orientation in their operations.
Originality/value
This paper examines the process by which operational activities should be designed to effect a service firm's performance by placing emphasis on the quality aspect of each indicator that comprises quality orientation. This differs from other studies in the sense that it first operationalizes quality orientation as a set of indicators, and then shows how individual indicators influence business performance.
Keywords
Citation
Mehra, S., Joyal, A.D. and Rhee, M. (2011), "On adopting quality orientation as an operations philosophy to improve business performance in banking services", International Journal of Quality & Reliability Management, Vol. 28 No. 9, pp. 951-968. https://doi.org/10.1108/02656711111172531
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited