Assessing The Relationship Between Total Quality Management

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Assessing The Relationship Between Total Quality Management (TQM)

Practices and Organizational Performance in Libyan Manufacturing
Companies
Article · March 2024

DOI: 10.59743/jau.v9i1.2005
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Journal of Alasmarya University: Applied Sciences
Vol. 9, No.1, March (2024), 27-47
‫ العلوم التطبيقية‬:‫مجلة الجامعة األسمرية‬
47-27 ،)2024( ‫ مارس‬،1 ‫ العدد‬،9 ‫المجلد‬
https://doi.org/10.59743/jau.v9i1.2005
Assessing The Relationship Between Total Quality Management

(TQM) Practices and Organizational Performance in Libyan
Manufacturing Companies
Aref M. Alkelani1 , Abdurezzag M. Ataalah2, Abduallah M. shwairef3

1
Department of Mechanical Engineering, Surman collage for science and technology-
Surman-Libya
2
Department of Mechanical Engineering, Higher Institute of Sciences & Technology-
Gharyan – Libya
3
Misrata University - Faculty of Economics- Misrata- Libya
Abstract
In the contemporary landscape, manufacturing companies should actively cultivate
their competitiveness and demonstrate the capacity to sustain a robust competitive
advantage. Key factors in this pursuit are Organizational Performance (OP) and the
implementation of Total Quality Management (TQM), which are widely recognized as
crucial variables within the manufacturing sector. This study employs a comprehensive
approach, utilizing descriptive analysis with the Statistical Package for Social Sciences
(SPSS) and Structural Equation Modeling (SEM) employing the Partial Least Square
(PLS) Approach Version 3.0. Distinguished by its capability to represent unobserved
concepts in relationships, account for measurement errors in the estimation process, and
validate the hypothesized model, this approach adds rigor to the investigation. The
primary focus of this research is the assessment of the relationship of TQM
implementation across a spectrum of companies, encompassing those with formal TQM
programs and those incorporating TQM practices. Meticulously designed questionnaires
are utilized for data collection, and distributed among various personnel, including total
quality managers, supervisors, quality assistants, control managers, general managers, top
manager production managers, and individuals possessing relevant quality expertise.
Through rigorous hypothesis testing, the study aims to establish the relationships between
TQM and OP. The findings reveal a positive relationship between TQM and OP in the
manufacturing companies in Libya. It is anticipated that the outcomes of this study will
serve as valuable insights and guidance for compliance managers and practitioners in
Libyan manufacturing, fostering improvements in organizational performance through
effective TQM implementations.
27
Corresponding author. Email: a_ataalah2002@scitech-gh.edu.ly
ISSN: 2706-9524 (Print) ISSN: 2706-9532 (Online)
Received: 13 January 2024 ; Accepted: 21 February 2024; Available online: 22 February 2024
Assessing The Relationship Between Total Quality Management (TQM) Practices and Organizational
Performance in Libyan Manufacturing Companies
Keywords: Total Quality Management, Organization Performance, Libyan manufacturing

companies
INTRODUCTION
In the realm of industrial services, the manufacturing industry stands out as a dynamic
sector marked by the provision of individually tailored service solutions and a heightened
emphasis on performance, a subject that has increasingly become the focus of scholarly research
[1]. This inquiry delves into the crucial determinants of service performance quality, examining
aspects such as service features, customer complaint handling, and situational factors. As we
look to the future of the manufacturing sector, Total Quality Management (TQM) emerges as a
key player in the pursuit of continuous improvement and enhanced performance [2]. Developed
in recent years, TQM offers a direct response to the challenges posed by the globalization of
the manufacturing market and the escalating pressures of competitiveness [3].
Numerous successful manufacturing companies have embraced TQM, recognizing its
indispensable contribution to operational excellence. Consequently, TQM is not merely an
operational methodology but is positioned as a pivotal element for achieving manufacturing
excellence. The concept of manufacturing excellence itself signifies a path towards becoming
the premier manufacturer in the industry, aiming to attain the highest level of manufacturing
capabilities or best-in-class performance. This perspective is further corroborated by the work
of various researchers who, in developing their frameworks, consistently regard TQM as a
critical parameter or enabler for the realization of manufacturing excellence [4, 5].
This study is positioned within this context, seeking to contribute to the existing body of
knowledge by conducting an in-depth exploration into the relationship between TQM and
organizational performance in manufacturing companies in Libya. By building on the
foundational principles of TQM and recognizing its acknowledged role in achieving
manufacturing excellence, this research aims to unravel the nuanced dynamics that connect
TQM practices to the overall performance of manufacturing entities in the Libyan industrial
landscape.
BACKGROUND OF THE STUDY

Organizations globally have increasingly turned to TQM as a strategic approach to
enhance competitiveness and bolster financial outcomes [6]. TQM, positioned as a catalyst for
improved organizational performance, compels management to reassess their business
strategies and practices amidst market pressures, fostering a culture of creativity and innovation
[7]. This necessitates the integration of a 'quality vision' into the overarching goals and
objectives of organizations, aligning with the principles of techno-structural intervention
theory.
The techno-structural intervention theory, emphasizing productivity, performance factors,
and interpersonal relationships, underscores the importance of interventions such as socio-
technical systems, including quality circles and TQM [8]. Recognizing the multifaceted benefits
of TQM, organizations strive to harness its potential for improved quality, employee
participation, teamwork, customer and employee satisfaction, productivity, communication,
and market share [9].
28
Journal of Alasmarya University: Applied Sciences ‫ العلوم التطبيقية‬:‫مجلة الجامعة األسمرية‬
Aref M. Alkelani Abdurezzag M. Ataalah Abduallah M. shwairef
In the context of Libya's manufacturing industry, however, a prevailing gap exists in the
adoption of TQM techniques. Despite the proven benefits of TQM, a considerable number of
manufacturing companies in Libya remain unfamiliar with or have not embraced these practices
[10]. Challenges hindering TQM implementation in Libyan manufacturing industries include
(i) a lack of vision, (ii) inadequate leadership, (iii) inefficient resource utilization, (iv)
insufficient recognition of human resources as agents for change, (v) disregard for customer
perspectives, and (vi) an absence of a scientific, systematic approach to organizational
management [11, 12]. Additionally, there is a dearth of skilled managers, limited utilization of
quality management tools, and a deficiency in expertise to identify target consumers and attract
them to purchase products [11, 12].
The dearth of TQM implementation in Libyan manufacturing industries is exacerbated by
a shortage of skilled managers and a limited application of quality management tools.
Identifying target consumers and compelling them to purchase products is also hindered by a
lack of expertise [11, 12]. Consequently, the nascent state of TQM implementation in Libya
offers a unique research context to investigate the relationship between TQM and organizational
performance, shedding light on the potential impact of TQM practices in a context where its
adoption is still in its infancy.
Objective of the Study:

I. To Investigate the relationship between Total Quality Management (TQM) practices
and Organizational Performance (OP) in Libyan manufacturing companies.
II. To Unravel the nuanced connection of TQM practices to overall organizational
performance within the Libyan industrial landscape.
III. To Provide valuable insights and guidance for managers and practitioners in Libyan
manufacturing to foster improvements in organizational performance through effective
TQM implementations.
LITERATURE REVIEW
Total Quality Management (TQM) And Business Excellence Models
(BEMS)
The evolution of BEMS from their origins as TQM models underscores a broader
paradigm shift. Contemporary references prefer the term BEMS, emphasizing the overarching
pursuit of "excellence" in every facet of business. This departure from a focus solely on product
and process quality signifies a comprehensive evaluation of how core values and concepts of
business excellence (BE) permeate an organization.
TQM is instrumental for organizations seeking to discern and refine processes, fostering
an understanding of areas requiring improvement to enhance overall results. This encompasses
various organizational dimensions, including the environment, key working relationships, and
strategic positioning within the competitive landscape, strategic challenges, advantages, and
performance improvement systems [13][14].
Beyond the confines of a quality system, BE is about fortifying an organization's
management systems and processes across all domains, including leadership, strategy, customer
focus, information management, and people and processes. The ultimate goal is to achieve
excellence in every aspect, with a paramount focus on attaining superior business results.
29
Volume (9) Issue 1 (March 2024) )‫م‬2024 ‫ (مارس‬1 ‫) العدد‬9( ‫المجلد‬
BEMs play a pivotal role in helping organizations assess strengths, identify improvement
areas, and provide guidance on the way forward. Functioning as internal business consultants,
BEMs ensure that organizational decisions align with stakeholder needs, adhere to international
best practices, and meet the organization's objectives. Over the past two decades, both TQM
and BEMs have garnered widespread popularity, often with national bodies supporting their
development as the foundation for award programs and the broader adoption of TQM and BE
principles [15].
A notable exemplar in this domain is the Baldrige Excellence Framework, synonymous
with Baldrige Performance Excellence, a global standard empowering organization to achieve
their goals, enhance results, and heighten competitiveness. Adopted by thousands worldwide,
this framework serves as a compass, encompassing core values and concepts, criteria for
performance excellence, and scoring guidelines to facilitate continual improvement and
sustainable results. Organizations recognized as national role models receive the prestigious
MBNQA, a Presidential award. More than 100 recipients have generously shared their best
practices with others, fostering a collaborative approach to excellence.
The Baldrige Excellence Framework poses three fundamental questions to organizations:
Is your organization performing at its optimal level; How do you know; What and how should
your organization improve or change. By challenging organizations with these questions, the
Criteria for Performance Excellence delve into how well organizations are achieving what truly
matters.
The framework's seven critical aspects, as outlined by the Baldrige Performance
Excellence Program [16], focus on managing and performing as an organization: (i) leadership,
(ii) strategic planning, (iii) customer focus, (iv) measurement, analysis and knowledge
management, (v) workforce, (vi) operations focus , and (vii) results. Although initially designed
for the United States, the Baldrige Excellence Framework has been embraced globally,
exemplifying its adaptability and impact on organizational excellence Figure 1.
Figure 1: Baldrige Performance Excellence Program (2017-2018)
30
To further clarify the dimensions of TQM under Baldrige's definition, [17] provides
insights into the definitions of Leadership, Strategic Planning, Customer Focus, Measurement
Analysis and Knowledge Management, Workforce Focus, Operations Focus, and Results.
Leadership examines the guidance and sustainability of senior leaders' actions, governance
systems, and fulfilment of legal, ethical, and societal responsibilities; Strategic Planning
evaluates the development and implementation of strategic objectives and action plans, along
with the adaptability and measurement of progress; Customer Focus delves into engagement
strategies, customer relationship-building, and the utilization of customer information for
continuous improvement and innovation; Measurement, Analysis, and Knowledge
Management assess the selection, analysis, management, and improvement of data,
information, and knowledge assets; Workforce Focus centres on assessing workforce capability
and capacity needs and creating a conducive environment for high performance; Operations
Focus examines the design, management, and improvement of work systems and processes to
deliver customer value and ensure organizational success and sustainability; Lastly, Results
scrutinize an organization's performance and improvement across key areas, including product
and process outcomes, customer-focused outcomes, workforce-focused outcomes, leadership
and governance outcomes, and financial and market outcomes. Performance levels are
evaluated in comparison to competitors and organizations with similar product offerings
Baldrige Performance Excellence Program [16].
In essence, this comprehensive framework, integrated with BEMs and TQM principles,
provides organizations with a holistic method to manage and elevate their operations, ensuring
decisions align with stakeholder needs, international best practices, and overarching
organizational goals.
Organizational Performance (Op)

Performance is an important variable in any organizational and job performance issues.
[18, 19] underscored that the success of task execution hinges on employee performance,
making it a decisive factor in achieving success. For organizations aspiring to optimal results,
a focused emphasis on Organizational Performance (OP) becomes imperative. OP serves as a
key indicator, gauging how effectively an organization accomplishes its objectives [20].
Various studies have shown that there are five types of competence. These include individual
knowledge in a specific field, the ability to exhibit physical or mental performance, self-concept
encompassing individual attitudes and values shaping self-image, traits consistent with
situational demands, and motives serving as constant intentions guiding individual actions [21].
Measuring OP commonly involves five categories of performance: financial performance,
operational or internal performance, customer satisfaction, employee satisfaction, and learning
and growth. Notably, the absence of standardized measures across related studies complicates
the drawing of universal conclusions and comparisons of results. This lack of consensus on the
definition of performance is acknowledged in the literature, as highlighted by [22].
In this study, a nuanced approach is adopted by concurrently utilizing financial criteria to
measure performance. The framework integrates TQM dimensions and OP demonstrating the
intricate relationships between these concepts, as illustrated in Figure 2. This holistic
perspective enables a comprehensive evaluation of the multifaceted dynamics influencing
organizational performance, aligning with the diverse dimensions inherent in the study of TQM
and OP in manufacturing companies in Libya.
31
To gain a comprehensive understanding from both theoretical perspectives and practical

applications, a review of several prior investigations is succinctly presented below. In a study
issued by focuses on TQM practices within the manufacturing sector of the Philippines, the
researcher [23] identified a robust correlation between the adoption of TQM and organizational
performance. The findings underscored the influential role of TQM in shaping human behavior,
indicating that 42% of the variability in organizational performance can be elucidated by the
implementation of TQM. This manifestation is reflected in enhancements across
communication, teamwork, skill development, and employee morale. Similarly, a study
conducted in Pakistan by [24] mirrored these trends, revealing that TQM accounts for 26.4%
of the variability in organizational performance. The study emphasized that TQM elements
contribute significantly to the effectiveness of organizational performance in areas such as
employee relations, overall quality and business performance, and heightened levels of
customer satisfaction.
[25] investigated within the realm of SMEs in India, seeking to understand the
relationship between TQM practices and SME performance. Their findings demonstrated a
positive association between TQM practices and SME performance. However, the study did
not uncover a significant correlation between two TQM factors, specifically leadership and
supplier relationship, and two measures of organizational performance, namely customer
satisfaction and employee satisfaction.
As per [26], TQM factors possess the capability to significantly and positively influence
organizational performance by taking into account aspects such as customer satisfaction,
environmental considerations, market share, and internal procedures. This study identified
quality practices of top management, employee involvement, process and data quality
management, customer focus, and quality tools and techniques as the primary TQM factors.
The impact of top management's quality practices strongly affects employee involvement,
contributing to significant influences on both quality improvement and organizational
performance, reflecting both direct and indirect effects.
While customer focus does not exhibit a significant correlation with employee
involvement, its substantial influence on process and data quality management enables it to
directly and indirectly impact organizational performance, as outlined by [26]. The authors
argue that TQM implementation results in quality improvement, environmental and social
responsibility, customer satisfaction, and market dominance. They concluded that the impact
of hard TQM factors on organizational performance is less pronounced than that of soft TQM
factors.
In both types of firms, leadership emerged as the most impactful factor, with employee
involvement ranked as the second most effective for firms without ISO 9000. Customer focus
did not play a substantial role in this context. A study on soft TQM factors and their positive
impact on the performance of cement manufacturers in India highlighted relationship building
with external and internal partners as the most influential factor, explaining 67% of the total
variance in performance. Additionally, human resource focus, visionary leadership, and quality
culture demonstrated strong and positive correlations with performance, explaining 2.6%,
23.5%, and 67% of the variance in organizational performance, respectively [27].
Examining TQM factors in 80 rice industries in Karnataka, India, [28] Also found that
employee management, customer focus, and process management were pivotal elements in
32
organizational performance. On the other hand, management support, supplier management,

and continuous improvement did not significantly impact the performance of rice firms.
Moreover, the implementation of TQM resulted in higher quality and profitability for these
organizations.
In the investigation of TQM practices among Iranian manufacturing SMEs, [29]
Additionally highlighted a robust relationship between TQM practices and the organizational
performance of Iranian SMEs. Among various TQM factors, the researcher identified
leadership and process management as the most crucial ones in enhancing organizational
performance.
[30] discovered a robust positive influence of TQM practices, encompassing
organizational leadership, HR management, customer relationship, strategic planning, and
supplier management, on organizational performance (OP), particularly in the domains of
financial results and customer satisfaction. In a parallel investigation, [31] explored the
relationships between TQM and organizational performance, introducing organizational
learning as a mediator. The authors elucidated that TQM exerts a significant positive impact on
OP.
Moreover, [32] conducted their research on pharmaceutical companies in Tehran,
revealing a direct positive impact of both organizational culture and TQM factors, such as
customer focus, on organizational performance. They elucidated that culture exerts an indirect
influence on performance by affecting various TQM elements. In a study on Pakistani
manufacturing companies, [33] identified a positive correlation between TQM factors and
organizational performance. They highlighted customer focus, contributing to 49.5%, and
leadership, contributing to 20.7% of the variance in organizational performance, as the two
most pivotal factors capable of significantly enhancing organizational effectiveness. In the
examination of customer focus, [34] underscored its paramount importance in facilitating the
implementation of other soft TQM elements within an organization.
Furthermore, In the context of fishery companies in a developing country, [35] asserted
that TQM practices wield a statistically significant impact on both organizational performance
and competitive advantage. The study proposed that TQM elements indirectly influence
performance by impacting competitive advantage, with this indirect influence proving more
effective than direct effects. Consistent with this finding, [35] noted that leadership exhibited
the highest influence, customer focus held an average position, and process management had
the least impact on organizational performance.
As per [26], TQM factors possess the capability to significantly and positively influence
organizational performance by taking into account aspects such as customer satisfaction,
environmental considerations, market share, and internal procedures. This study identified
quality practices of top management, employee involvement, process and data quality
management, customer focus, and quality tools and techniques as the primary TQM factors.
The impact of top management's quality practices strongly affects employee involvement,
contributing to significant influences on both quality improvement and organizational
performance, reflecting both direct and indirect effects.
[36] discovered that TQM elements, particularly customer focus, benchmarking, supplier
relationship, and top management commitment, have positive and significant associations with
the organizational performance of companies, regardless of ISO certification. Importantly, they
noted that the performance of ISO-certified organizations surpassed that of non-ISO-certified
firms. In an extension of this study, [37] introduced the factor of market competition and
33
observed that a higher level of market competition amplifies the significance and effectiveness
of customer focus and product design on organizational performance.
According to Baldrige Performance Excellence [38] & [39] the Measurement, Analysis,
and Knowledge Management aspect scrutinizes an organization's processes of selecting,
gathering, analyzing, managing, and enhancing data, information, and knowledge assets,
alongside information technology management. This includes data presentation, information
reliability, hardware and software user-friendliness, mechanisms for information acquisition
and communication, and data validity.
Workforce Focus assesses the organization's ability to evaluate workforce capabilities,
foster a conducive work environment for optimal performance, and attract, manage, and
develop its workforce in alignment with overall mission, strategy, and action plans (Baldrige
Performance Excellence [38]. Successful TQM execution requires a committed and skilled
workforce actively participating in activities to enhance quality across all production stages.
All employees are considered internal customers, and their satisfaction is crucial for achieving
external customer satisfaction, emphasizing the interconnectedness of suppliers and customers
in a quality chain [40, 41]. Operations Focus examines how an organization designs, manages
and enhances work systems and processes to deliver customer value, achieve organizational
success, and ensure sustainability. It also assesses readiness for emergencies (Baldrige
Performance Excellence [38]. The comprehensive approach aligns with Baldrige's TQM
dimensions, emphasizing the interconnectedness of various organizational aspects.
Consequently, based on the aforementioned discussions and supporting evidence, the following
hypothesis is posited:
H1. There is a significant relationship between leadership and organizational performance
H2: There is a significant relationship between customer focus and organizational
performance.
H3:There is a significant relationship between strategic planning and organizational
performance.
H4: There is a significant relationship between Measurement, Analysis and Knowledge
Management and organizational performance.
H5: There is a significant relationship between Workforce and organizational performance.
H6: There is a significant relationship between Operations Focus and organizational
performance.
34
Figure 2. A Model shows the structural relationship between TQM and OP
METHODOLOGY
Sample and data collection
The data collection process involved several steps. Initially, the Industrial and Commercial
Information and Documentation Centre (CIDC) in Libya was enlisted to procure the Libyan
Manufacturing Companies' Directory, listing 65 companies. Given the requirement for a
substantial sample size in Partial Least Squares Structural Equation Modeling (PLS-SEM), the
targeted sample included 65 companies, with eight questionnaires distributed to each, totaling
520 questionnaires. The distribution specifically targeted managerial and quality positions
across the companies, acknowledging that each company implements TQM according to its
operational needs.
Recognizing the need for a robust sample size to conduct Partial Least Squares Structural
Equation Modeling (PLS-SEM), the study targeted all 65 companies, distributing eight
questionnaires to each, thereby totaling 520 questionnaires. Despite the vast scope, the response
rate was notably encouraging, culminating in the receipt of 313 returned questionnaires, out of
which 304 were deemed usable for analysis. Only a small proportion returned blank (4) or
partially completed (5) as shown in Table (1). This dedication to garnering a substantial
response ensured a comprehensive dataset that could effectively capture the nuances of TQM
implementation and its impact on organizational performance.
In ensuring the representativeness of the sample, a strategic approach was adopted to
disseminate the questionnaires among a diverse array of stakeholders within the targeted
companies. Efforts were made to engage individuals occupying key managerial and quality-
related positions, including general managers, quality managers, supervisors, and other experts
intricately involved in TQM practices.
This deliberate selection process aimed to capture insights from individuals with a deep
understanding of TQM principles, policies, and procedures, thus enriching the study's findings
with firsthand perspectives from those directly involved in TQM implementation and oversight.
35
The rationale for choosing these respondents was based on [42], who identified them as
valuable sources of information due to their role as executors of top management decisions,
their ability to interact with various organizational levels, and their insight into quality-related
issues. By encompassing a broad spectrum of stakeholders, the study sought to paint a holistic
picture of TQM practices within Libyan manufacturing companies, reflecting the multifaceted
nature of organizational dynamics and the varied approaches to quality management across
different functional areas.
Furthermore, the units of analysis within the study were carefully delineated to encompass
various departments within industrial companies, ranging from Production and Quality
Assurance to Operations Management, Human Resources, and beyond. This granular approach
facilitated a nuanced examination of how TQM principles permeate different facets of
organizational operations, shedding light on the interconnectedness of quality management
practices across diverse functional domains. Leveraging the insights gleaned from these
multifaceted perspectives, the study aimed to offer actionable recommendations for enhancing
TQM effectiveness and driving organizational performance within the Libyan manufacturing
sector, thereby contributing to the broader discourse on quality management practices in
industrial settings.
Table 1.: Response rate of the survey
Description Result
Total questionnaires distributed to the companies 520
Total number of returned questionnaires 313
Total number of usable questionnaires 304
Blank questionnaire returned (without participation) 4
Returned questionnaires (partially answered) 5
Overall response rate 58%
Questionnaire development
A seven-point Likert Scale was used to measure the construct categories – TQM, and OP.
six constructs for TQM, consisting of leadership, Strategic Planning, customer focus,
Information and Operations process, management analysis and knowledge, and management
workforce were adapted from [43, 44],and [45].
In pursuit of unraveling the relationship between TQM practices and OP within the context
of manufacturing companies in Libya, the research model of this study was meticulously
crafted. The primary objective was to discern the perceptions of TQM practices and OP
prevalent in Libyan industries.
Employing a quantitative research approach, data collection was executed through a
comprehensive survey questionnaire. This method allowed for a systematic exploration of the
nuanced perspectives held by individuals within the Libyan industrial landscape regarding
TQM practices and their perceived impact on organizational performance. The amassed data
underwent rigorous analysis leveraging statistical tools such as the SEM utilizing Smart PLS
version 3.0.
36
A robust foundational model encapsulating TQM and OP dimensions was meticulously

constructed. The validation process involved the application of advanced quantitative
techniques inherent in structural equation modeling. This method not only provided a detailed
understanding of the interplay between TQM practices and OP but also ensured the reliability
and validity of the proposed research model.
The culmination of the study involved deriving insightful conclusions and formulating
actionable recommendations based on the outcomes gleaned from the comprehensive data
analysis. The findings not only contribute to the existing body of knowledge on TQM and OP
but also offer practical implications for manufacturing companies in Libya aiming to optimize
their organizational performance through effective TQM implementation.
DATA ANALYSIS AND RESULTS

Measurement model
The partial least square structural equation modeling (PLS-SEM) technique was
performed to analyze the measurement [46] and structural models [47] using Smart PLS
software. The measurement model was created to assess convergent validity. Convergent
validity is the degree to which multiple items used to measure the same concept agree. Factor
loadings, composite reliability (CR), and average variance extracted (AVE) were used to assess
convergence validity (Hair et al., 1998). The recommended values for loadings are set at .0.5,
the AVE should be .0.5 and the CR should be .0.7.
In this study, the AVE score for each construct was found to be above the minimum
threshold of more than 0.5 and ranged between 0.529 to 0.983, as shown in Table (2) In this
study, the first step the loading of the items was checked, the items that had loading less than
0.5, as suggested by Hair et al., 2010, were deleted, however, the result attained showed that
the value for AVE for the TQM was below 0.5. To increase the AVE above 0.5, the item was
deleted and for OP, PP2 was deleted.
In addition, CR was used to examine the consistency of the measurement items employed
in this study. Composite reliability is more suitable for PLS-SEM in comparison to Cronbach’s
Alpha, which prioritizes indicators according to their reliability during the model’s estimation
(Hair et al., 2012). Composite reliability should be higher than 0.70 as suggested by [48];[49].
In this study, all the values for composite reliability for each endogenous variable were more
than 0.80. Thus, it can be concluded that the measurements are reliable and internal consistency
is present. In this study, the summary of the construct validity and reliability after adjustment
is by first, the loading of the items was checked, the items that have loading less than 0.5, as
suggested by [50], were deleted, however, the result attained showed that the value for AVE
for QL was AVE=0.863, CR was 0.962, for QS the value for AVE= 0.905, CR was 0.980 and
for QC, VAE = 0.716, CR was 0.937, for QI the AVE was 0.806, CR=0.943, the result for QP
was AVE= 0.827, CR was 0.966 and QO the value for AVE= 0.875 and CR was 0.965. To
increase the AVE above 0.5, the items QL3, and QO1 were deleted as shown in Table (3)
37
Table 2.: Cronbach’s alpha, Composite Reliability and Average Variance Extracted
Cronbach's Alpha Composite Reliability (CR) Average Variance Extracted (AVE)
OP 0.952 0.957 0.529

PC 0.987 0.990 0.952
PF 0.994 0.996 0.983
PP 0.965 0.972 0.853
PW 0.985 0.989 0.958
QC 0.919 0.937 0.716
QI 0.919 0.943 0.806
QL 0.947 0.962 0.863
QO 0.952 0.965 0.875
QP 0.957 0.966 0.827
QS 0.974 0.980 0.905
TQM 0.951 0.957 0.440
Table 3.: Convergent Validity of TQM First Order
Variable Constructs Items Loadings AVE CR to low loading Items deleted due
QL1 0.959 QL3
QL2 0.910
QL
QL3 0.275 0.863 0.962
QL4 0.952
QL5 0.894
QS1 0.974
QS2 0.959
QS
QS3 0.927 0.905 0.980
QS4 0.968
QS5 0.929
QC1 0.886
QC2 0.641
QC QC3 0.910
0.715 0.937
QC4 0.899
TQM QC5 0.942
QC6 0.756
QI1 0.910
QI QI2 0.935
0.875 0.965
QI3 0.948
QI4 0.947
QP1 0.949
QP2 0.948
QP QP3 0.884
0.827 0.966
QP4 0.959
QP5 0.756
QP6 0.943
QO QO1 0.023 0.806 0.943 QO1
38
Variable Constructs Items Loadings AVE CR to low loading Items deleted due
QO2 0.830
QO3 0.941
QO4 0.896
QO5 0.920
TQM Total Quality Management, QL Leadership, QS Strategic PlanningM, QC Customer Focus, QI Information and Knowledge
Management, QP Workforce ,QO Operations Process
In Table (4), the Convergent Validity of TQM second order shows a result that the value for
AVE was 0.440, CR=0.957, where the items QL3, and QO1 were deleted, due to low loading.
Table 4.: Convergent Validity of TQM Second Order
Variable Constructs Loadings AVE CR

QL 0.854
QC 0.654
TQM QS 0.869
QP 0.844 0.440 0.957
QI 0.652
QO 0.525
TQM Total Quality Management, QL Leadership, QS Strategic PlanningM, QC Customer Focus, QI Information and Knowledge
Management, QP Workforce ,QO Operations Process
However, the result showed that the value for AVE for PF was AVE=0.983, CR was 0.996,
for PW, the value for AVE= 0.958, CR was 0.989, the result for PC was AVE=0.952, CR was
0.990, for PP the result for AVE = 0.853, CR was 0.972 (see Table 5). the item PP2 were
deleted, due to low loading.
Table 5.: Convergent Validity of OP First Order
Items deleted due to low

Variable Constructs Items Loadings AVE CR
loading
PF1 0.993
PF PF2 0.993
0.983 0.996
PF3 0.993
PF4 0.987
PW1 0.954
PW PW2 0.991
OP 0.958 0.989
PW3 0.988
PW4 0.983
PC1 0.918
PC2 0.992
PC3 0.993 0.952 0.990
PC
PC4 0.993
PC5 0.981
PP1 0.934 PP2
OP
PP2 0.496
PP3 0.958
PP4 0.929 0.853 0.972
PP PP5 0.962
PP6 0.910
PP7 0.844
OP Organisational Performance PF Financial Results, PW Workforce Results, PC Customer Result, PP Product and Process Result.
39
The convergent validity of OP second order result attained showed that the value for AVE was
0.529 and CR was 0.957. Table (6) showed the convergent validity of OP second order.
Table 6.: Convergent Validity of OP Second Order
Variable Constructs Loadings AVE CR

PF 0.796
PW 0.691
OP 0.529 0.957
PC 0.722
PP 0.835
OP Organisational Performance PF Financial Results, PW Workforce Results, PC Customer Result, PP Product and Process Result.
Discriminant validity, the assurance that a measure is distinct from other similar yet
conceptually different constructs, was scrutinized at both construct and item levels using
[51],[52] criteria. Correlation coefficients between measures of a construct and those of other
constructs were examined, with high coefficients indicating weak discriminant validity. The
analysis, utilizing the PLS algorithm, employed cross-loading and the Fornell-Larcker criterion
to assess discriminant validity. According to [53], inspection of items is crucial, ensuring that
each item is more strongly related to its construct column than to items of any other construct.
The results, as reflected in Table (7), demonstrated that the square root of each construct's AVE
exceeded the correlations with other constructs, affirming satisfactory discriminant validity in
the study. Thus, the findings from both cross-loading and Fornell and Larcker's criterion
affirmed the study's adequate discriminant validity.
Taable 7: Discriminant Validity of Construct Fornell-Larcker Criterion
Research
OP PC PF PP PW QC QI QL QO QP QS TQM
construct
OP 0.728
PC 0.727 0.976
PF 0.797 0.490 0.991
PP 0.830 0.390 0.572 0.924
PW 0.690 0.345 0.380 0.481 0.979
QC 0.212 0.096 0.079 0.188 0.315 0.846
QI 0.205 0.225 0.113 0.153 0.136 0.082 0.898
QL 0.278 0.087 0.187 0.272 0.330 0.603 0.347 0.929
QO 0.224 0.157 0.205 0.218 0.089 0.251 0.512 0.451 0.935
QP 0.245 0.165 0.150 0.200 0.261 0.362 0.465 0.615 0.468 0.909
QS 0.295 0.203 0.192 0.221 0.320 0.529 0.281 0.709 0.438 0.699 0.951
TQM 0.325 0.202 0.207 0.277 0.337 0.649 0.527 0.851 0.651 0.846 0.872 0.663
40
Figure 3.: Measurement model
Structural equation modelling

Structural Equation Modelling (SEM) method was also used to assess direct and indirect
effects among variables [50]. SEM is a second-generation technique which can be used to
explain the relationships between multiple variables [50]. SEM consists of a measurement
model or confirmatory factor model that specifies the relationship between the observed
measures and their latent constructs, and the structural model that specifies the relationships
between the latent constructs themselves. Compared to first-generation techniques such as
Factor Analysis (FA), Discriminant Analysis (DA), Path Analysis (PA), and Multiple
Regression Analysis (MRA) which examine only single relationships, SEM can simultaneously
test and estimate causal relationships among multiple independent and dependent constructs
[50]. The association among constructs can be supported based on the theoretical determination
[50].
Smart PLS 3.0 was used to test the structural model. To evaluate the predictive power of
the structural model, R2 was calculated. R2 indicates the amount of variance explained by the
exogenous variables [54]. Using a bootstrapping technique with a re-sampling, the path
estimates and t-statistics were calculated for the hypothesized relationships [54, 55]. The results
showed that the relationships between TQM practices and organizations' performance were
significant (b 0.180, t-value 2.606**).
41
Figure 4.: Structural Model
CONCLUSION
In light of the challenges facing Libya's manufacturing sector, bridging the gap between
traditional and organizational cultures is paramount. This can be achieved through concerted
efforts to create an environment conducive to the adoption of TQM practices.
This study aimed to investigate the impact of TQM practices on the performance of
manufacturing companies in Libya, with specific objectives in mind. Firstly, it sought to
understand the relationship between various dimensions of TQM and organizational
performance, recognizing their complex interplay. Secondly, it delved into the nuances of TQM
practices, aiming to uncover their profound implications for overall organizational effectiveness
within Libya's industrial landscape. Additionally, the study aimed to provide valuable insights
to managers and practitioners in Libyan manufacturing, guiding them toward more effective
TQM implementations to enhance organizational performance.
The findings underscored the critical role of TQM in Libya's industrial sector, highlighting
its influence on economic growth and societal development. Through a meticulous assessment
of TQM implementation across diverse companies, the study emphasized the indispensable
nature of TQM within the Libyan context. By leveraging a comprehensive TQM framework
derived from extensive literature, the study provided a robust roadmap for implementing TQM
effectively, serving as a practical guide for enhancing organizational performance.
Furthermore, aligning its findings with established excellence programs such as the
Baldrige framework, the study revealed a tangible correlation between TQM principles and
42
fundamental aspects of organizational management and performance. Through rigorous

empirical analysis, the study affirmed a positive and significant relationship between TQM
practices and organizational performance, reaffirming the efficacy of TQM in driving success.
The study's delineation of operationalized dimensions of organizational performance offered a
holistic evaluation, encompassing both financial and non-financial metrics essential for gauging
organizational effectiveness.
RECOMMENDATIONS
Based on the findings, several recommendations can be made to improve TQM

implementation and organizational performance in Libyan manufacturing. Firstly, companies
should focus on fostering a culture that embraces continuous improvement and quality
excellence, encouraging employee participation and empowerment. Secondly, there is a need
for ongoing training and development programs to enhance employees' understanding and
commitment to TQM principles. Additionally, companies should leverage technology to
streamline processes and enhance data-driven decision-making. Finally, collaboration and
knowledge-sharing among industry stakeholders can facilitate the adoption of best practices
and drive industry-wide improvements in organizational performance.
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46
‫‪Aref M. Alkelani‬‬ ‫‪Abdurezzag M. Ataalah‬‬ ‫‪Abduallah M. shwairef‬‬
‫تقييم العالقة بين ممارسات إدارة الجودة الشاملة واألداء التنظيمي في شركات‬
‫التصنيع الليبية‬
‫‪3‬‬
‫العارف المبروك الكيالني‪ ، 1‬عبد الرزاق محمد عطاءللا‪ ، 2‬عبدللا مفتاح الشويرف‬
‫‪1‬قسم الهندسة الميكانيكية‪ ،‬كلية صرمان للعلوم والتكنولوجيا – ليبيا‬

‫‪2‬قسم الهندسة الميكانيكية‪ ،‬المعهد العالي للعلوم والتقنية غريان – ليبيا‬
‫‪3‬كلية االقتصاد – جامعة مصراتة – ليبيا‬
‫الملخص‪:‬‬
‫في المشهد المعاصر‪ ،‬ينبغي على شركات التصنيع أن تعمل بنشاط على تنمية قدرتها التنافسية وإظهار قدرتها على الحفاظ‬
‫على ميزة تنافسية قوية‪ .‬والعامالن الرئيسيان في هذا المسعى هما األداء التنظيمي وتطبيق إدارة الجودة الشاملة‪ ،‬وهما عامالن‬
‫معترف بهما على نطاق واسع كمتغيرين حاسمين في قطاع التصنيع‪ .‬تستخدم هذه الدراسة منهجا ً شامالً‪ ،‬باستخدام التحليل‬
‫الوصفي باستخدام الحزمة اإلحصائية للعلوم االجتماعية (‪ )SPSS‬ونمذجة المعادالت الهيكلية (‪ )SEM‬باستخدام نهج‬
‫المربعات الصغرى الجزئية (‪ )PLS‬اإلصدار ‪ .3.0‬ويتميز هذا النهج بقدرته على تمثيل المفاهيم غير الملحوظة في العالقات‪،‬‬
‫ومراعاة أخطاء القياس في عملية التقدير‪ ،‬والتحقق من صحة النموذج المفترض‪ ،‬ويضيف هذا النهج دقة إلى التحقيق‪ .‬ينصب‬
‫التركيز األساسي لهذا البحث على تقييم العالقة بين تطبيق إدارة الجودة الشاملة عبر مجموعة من الشركات‪ ،‬بما في ذلك‬
‫الشركات التي لديها برامج رسمية إلدارة الجودة الشاملة وتلك التي تدمج ممارسات إدارة الجودة الشاملة‪ .‬وقد تم استخدام‬
‫استبيانات مصممة بدقة لجمع البيانات‪ ،‬وتم توزيعها على مختلف الموظفين‪ ،‬بما في ذلك مديري الجودة الشاملة‪ ،‬والمشرفين‪،‬‬
‫ومساعدي الجودة‪ ،‬ومديري الرقابة‪ ،‬والمديرين العامين‪ ،‬ومديري اإلنتاج ومديري اإلدارة العليا‪ ،‬واألفراد الذين يمتلكون‬
‫خبرات ذات صلة بالجودة‪ .‬تهدف الدراسة من خالل االختبار الدقيق للفرضيات إلى تحديد العالقة بين إدارة الجودة الشاملة‬
‫واألداء التنظيمي‪ .‬وتكشف النتائج عن وجود عالقة إيجابية بين إدارة الجودة الشاملة واألداء التنظيمي في شركات التصنيع‬
‫في ليبيا‪ .‬ومن المتوقع أن تكون نتائج هذه الدراسة بمثابة رؤى وتوجيهات قيّمة للمدراء والممارسين في مجال التصنيع في‬
‫ليبيا‪ ،‬مما يعزز التحسينات في األداء التنظيمي من خالل التطبيق الفعال إلدارة الجودة الشاملة‪.‬‬
‫الكلمات المفتاحية‪ :‬إدارة الجودة الشاملة‪ ،‬األداء التنظيمي‪ ،‬الشركات الصناعية‬
‫‪47‬‬
‫)‪Volume (9) Issue 1 (March 2024‬‬ ‫المجلد (‪ )9‬العدد ‪( 1‬مارس ‪2024‬م)‬
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Assessing The Relationship Between Total Quality Management (TQM)

Article · March 2024

Aref Mabrouk Rohoma Abdurezzag M. Ataalah

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Assessing The Relationship Between Total Quality Management

Aref M. Alkelani1 , Abdurezzag M. Ataalah2, Abduallah M. shwairef3

Keywords: Total Quality Management, Organization Performance, Libyan manufacturing

BACKGROUND OF THE STUDY

Objective of the Study:

Figure 1: Baldrige Performance Excellence Program (2017-2018)

Organizational Performance (Op)

To gain a comprehensive understanding from both theoretical perspectives and practical

organizational performance. On the other hand, management support, supplier management,

Figure 2. A Model shows the structural relationship between TQM and OP

A robust foundational model encapsulating TQM and OP dimensions was meticulously

DATA ANALYSIS AND RESULTS

Cronbach's Alpha Composite Reliability (CR) Average Variance Extracted (AVE)

OP 0.952 0.957 0.529

Table 3.: Convergent Validity of TQM First Order

Table 4.: Convergent Validity of TQM Second Order

Variable Constructs Loadings AVE CR

Table 5.: Convergent Validity of OP First Order

Items deleted due to low

Table 6.: Convergent Validity of OP Second Order

Variable Constructs Loadings AVE CR

Taable 7: Discriminant Validity of Construct Fornell-Larcker Criterion

Figure 3.: Measurement model

Structural equation modelling

Figure 4.: Structural Model

fundamental aspects of organizational management and performance. Through rigorous

Based on the findings, several recommendations can be made to improve TQM

‫‪1‬قسم الهندسة الميكانيكية‪ ،‬كلية صرمان للعلوم والتكنولوجيا – ليبيا‬

‫الكلمات المفتاحية‪ :‬إدارة الجودة الشاملة‪ ،‬األداء التنظيمي‪ ،‬الشركات الصناعية‬

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