Revision Number: 1 Revision Date: May 2014
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The Effects of TQM Implementation in ISO 9001
Certified Construction Firms
A PhD Dissertation Presented to The Faculty of Civil Engineering Department
Gokongwei College of Engineering De La Salle University, Manila
In Partial Fulfillment of the Requirements for the Degree
of Doctor of Philosophy in Civil Engineering
Major in Construction Technology and Management
By
Behnam Neyestani
Dissertation Advisers
Dr. Joseph Berlin P. Juanzon
Dr. Andres Winston C. Oreta
March 2018
APPROVAL SHEET
iii
DECLARATION
I, Behnam Neyestani, declare that this dissertation is an original research work has
been done by me and has not been submitted to earn a degree at any other academic
institution previously. All sources of information (Materials) that extracted and
reproduced from other authors in this dissertation, were accordingly acknowledged, and
a reference list has been appended.
I acknowledge that some parts of this research work were used to write some
conference papers, articles, and working papers during preparing this dissertation, as
listed below.
Conference papers:
Neyestani B., & Juanzon, J. B. P. (2017). “Effects of ISO 9001 Standard on Critical
Factors of Project Management in Construction Industry.” In Plaisent, M., & Valenzuela,
A.J. (Eds.), Proceedings of 2017 Manila International Conference on “Trends in
Engineering and Technology” (MTET-17), pp. 53-57, Jan. 23-24, 2017 Manila,
Philippines. (ISBN: 978-93-84468-98-9). (Available at uruae:
http://uruae.org/siteadmin/upload/AE0117503.pdf).
http://doi.org/10.17758/URUAE.AE0117503 (Best final Paper Award).
Neyestani B., & Juanzon, J. B. P. (2017). “Impact of ISO 9001 Standard on the Quality
Costs of Construction Projects in the Philippines.” In Plaisent, M., & Valenzuela, A.J.
(Eds.), Proceedings of 2017 Manila International Conference on “Trends in Engineering
and Technology” (MTET-17), pp. 58-63, Jan. 23-24, 2017 Manila, Philippines. (ISBN:
978-93-84468-98-9). (Available at uruae:
http://uruae.org/siteadmin/upload/AE0117504.pdf).
http://doi.org/10.17758/URUAE.AE0117504
Journals publications:
Neyestani, B., & Juanzon J. B. P. (2017). “ISO 9001 Standard and Organization's
Performance: A Literature Review.” International Journal of Advance Multidisciplinary
Research, 4(2), pp. 6-13. http://dx.doi.org/10.22192/ijamr.2017.04.02.002
Neyestani, B., & Juanzon, J. B. P. (2016). “Identification of A Set of Appropriate Critical
Success Factors (CSFs) for Successful TQM Implementation in Construction, and Other
iv
Industries,” International Journal of Advanced Research, 4(11), pp. 1581–1591.
http://dx.doi.org/10.21474/IJAR01/2248
Neyestani, B. (2016). “Impact of ISO 9001 Certification on the Projects' Success of
Large-Scale (AAA) Construction Firms in the Philippines,” International Research
Journal of Management, IT & Social Sciences, 3(11), pp. 35-45.
http://doi.org/10.21744/irjmis.v3i11.305
Neyestani, B., & Juanzon, J. B. P. (2016). “Developing an Appropriate Performance
Measurement Framework for Total Quality Management (TQM) in Construction and
Other Industries.” IRA International Journal of Technology & Engineering, 5(2), pp. 32-
44. http://dx.doi.org/10.21013/jte.v5.n2.p2
Working papers:
Neyestani, B. (2017, January). “Effects of ISO 9001 on Non-Financial and Financial
Performance in the Organizations: A Review,” http://dx.doi.org/10.2139/ssrn.2964208
Neyestani, B. (2017, March). “Seven Basic Tools of Quality Control: The Appropriate
Quality Techniques for Solving Quality Problems in the Organizations.,”
http://dx.doi.org/10.2139/ssrn.2955721
Neyestani, B. (2017, March). “Principles and Contributions of Total Quality Mangement
(TQM) Gurus on Business Quality Improvement,” http://doi.org/10.5281/zenodo.345428
Neyestani, B. (2017, March). “Quality Costing Technique: An Appropriate Financial
Indicator for Reducing Costs and Improving Quality in the Organizations,”
http://dx.doi.org/10.2139/ssrn.2949993
Neyestani, B. (2016, December). “Effectiveness of Quality Management System (QMS)
on Construction Projects,” http://doi.org/10.5281/zenodo.290272
Signature: ____________________________
Date: ________________________________
v
ABSTRACT
TQM philosophy was first introduced by quality gurus, it is an organization-wide
approach considering all crucial factors for producing the products and services with good
quality. Indeed, TQM system can be successful to capture its goals with adopting ISO
9001, establishing a proper QMS for processes of an organization. In fact, the
construction practitioners and researchers are rarely serious to apply critical TQM
practices and ISO 9001 at the same time. Thus, this study designed particularly to identify
the effects of a set of TQM CSFs and ISO 9001 solely and conjointly on organizational
performance, and also to verify whether ISO 9001 as a TQM tool has a complementary
role with TQM in enhancing organizational performance within ISO 9001-certified
construction firms belonged to Large-scale and located in Metro Manila, Philippines.
To shed more light on these issues, a systematic literature review was carefully done
on the context of the study across a lot of sources from databases, which could provide
valuable insight on specifying the main concepts of this research. However, the seven
most essential TQM practices, ten right KPIs in the basis of BSC, and the mechanism of
ISO 9001 were uncovered that are so much important in formulating a successful TQM
implementation model. After determining main variables, an initial TQM framework has
been made in corresponding with the evidence of the literature body. In order to test the
eleven derived hypotheses, representing the interrelationships among TQM CSFs, ISO
9001, and organizational performance (KPIs) in the construction industry.
To examine empirically this aforementioned TQM framework, a mono quantitative
design based on survey strategy was justifiably selected as an appropriate methodology,
and accordingly a survey questionnaire was built to collect data at a particular point in
time. A self-administered questionnaire method was enforced, and 172 questionnaires
have been sent to the targeted sample, but the only 126 of them with a response rate of
73.3% could be valid and usable for use in statistical data analysis. Also, statistical
methods such as descriptive statistics and inferential statistics techniques were applied in
analyzing the obtained data using SPSS 17 software.
vi
The outcomes of this investigation demonstrated that the implementation of a set of
critical TQM practices is not generally performed at a desirable degree in the construction
companies. Interestingly, the results of multiple regression analysis indicated that
customer focus has the greatest impact on better performance, followed by employee
involvement, training, process management, leadership, and supplier quality
management. While information and analysis cannot be able to have a significant role in
promoting organization's performance. Most importantly, this research found that each of
both TQM CSFs implementation and ISO 9001 certification has meaningfully a positive
contribution on organizational performance, and provide noticeable benefits in the
construction context. It is worth to bear in mind that TQM possesses better outcomes and
much broader approach than ISO 9001 in an organization. Overall, the enhanced
performance can be significantly obtained by performing the combination of a set of six
TQM CSFs and ISO 9001 as a whole at very high level, and the absence of contradiction
between them, has suggested to use and integrate these quality management programs for
achieving superior performance at all aspects of the construction firms. Finally, based on
enough evidence, an optimal TQM model is developed with the six most critical TQM
and ISO 9001 as enabling criteria, and a set of ten right KPIs (BSC) as result criteria,
providing the overall guidance for pursuing performance excellence at project and
enterprise levels in the construction industry.
vii
viii
TABLE OF CONTENTS
TITLE..............................................................................................................................i
APPROVAL SHEET......................................................................................................ii
DECLARATION...........................................................................................................iii
ABSTRACT.....................................................................................................................v
ACKNOWLEDGEMENTS.........................................................................................vii
TABLE OF CONTENTS............................................................................................viii
LIST OF TABLES.......................................................................................................xvi
LIST OF FIGURES.....................................................................................................xix
LIST OF ABBREVIATIONS.....................................................................................xxi
LIST OF APPENDICES............................................................................................xxii
CHAPTER 1 – INTRODUCTION ...............................................................................1
1.1 BACKGROUND OF THE STUDY..............................................................1
1.2 STATEMENT OF THE PROBLEM.............................................................5
1.3 OBJECTIVES OF THE STUDY...................................................................8
1.3.1 Main Objective.....................................................................................8
1.3.2 Specific Objectives...............................................................................8
1.4 SIGNIFICANCE OF THE STUDY...............................................................9
1.4.1 Academic Significance.........................................................................9
1.4.2 Practical Significance.........................................................................10
1.5 SCOPE, AND DELIMITATION OF THE STUDY....................................12
1.6 ASSUMPTIONS OF THE STUDY............................................................14
1.7 OPERATIONAL DEFINITION OF TERMS..............................................14
CHAPTER 2 – LITERATURE REVIEW....................................................................18
2.1 TOTAL QUALITY MANAGEMENT (TQM), AND ITS EFFECTS ON
ORGANIZATIONAL PERFORMANCE..........................................................18
2.1.1 The Concept and Definitions of Quality...............................................18
2.1.2 Basic Definitions of Total Quality Management…………………….19
2.1.3 Evolution of Total Quality Management..............................................21
2.1.4 The Quality Gurus Approaches............................................................23
2.1.5 Quality Award Models (Frameworks) for TQM Implementation........24
2.1.5.1 Deming Prize (DP)..................................................................25
2.1.5.2 Malcolm Baldrige National Quality Award (MBNQA)...........26
2.1.5.3 European Foundation for Quality Management (EFQM)........27
2.1.5.4 Comparison of Quality Awards................................................28
2.1.6 Quality, Total Quality Management, and Construction Industry.........29
2.1.6.1 Quality and Construction...............................................................29
2.1.6.2 Total Quality Management and Construction ...............................31
2.1.7 Implementations of TQM within Construction Firms.........................34
ix
2.1.8 Total Quality Management Critical Success Factors for
Construction................................................................................................39
2.1.9 Performance Measurement (Indicators) System for TQM.................45
2.1.9.1 Organizational Performance Measurement in Construction...45
2.1.9.2 Constructors Performance Evaluation System (CPES)…...…47
2.1.9.3 Main formal Performance Measurement Systems (PMSs) for
TQM Implementation.........................................................................51
2.1.9.4 Identifying KPIs for PMS (BSC)............................................52
2.1.10 Barricades of Implementing TQM in Construction Industry............57
2.1.11 Tools and Techniques of Total Quality Management (TQM)............58
2.1.12 Total Quality Management and Organizational Performance in
Construction................................................................................................59
2.2 ISO 9001 AND ITS EFFECTS ON ORGANIZATIONAL
PERFORMANCE.............................................................................................62
2.2.1 History and Development of ISO and ISO 9001.................................62
2.2.2 Revision of ISO 9001 Certification....................................................63
2.2.3 The ISO 9000 Family (Standards)…..................................................64
2.2.4 ISO 9001:2008 Requirements............................................................65
2.2.4.1 Overview of ISO 9001:2008..................................................67
2.2.4.2 Requirements of ISO 9001 Standard......................................69
2.2.5 Adoption of ISO 9001 Certification in the World..............................71
2.2.6 ISO 9001 certification and Construction Industry..............................71
2.2.7 Barriers of ISO 9001 Certification in Construction Industry..............73
2.2.8 The Effects of ISO 9001 Certification on Organizational
Performance...............................................................................................75
2.3 TOTAL QUALITY MANAGEMENT, AND ISO 9001
CERTIFICATION.............................................................................................78
2.3.1 TQM and ISO 9001 Certification within Construction Firms..........78
2.3.2 Comparison of TQM and ISO 9001 Certification............................78
2.3.3 The Relationship of TQM and ISO 9001 Certification, and their Effects
on Organizational Performance.................................................................81
CHAPTER 3 – CONCEPTUAL FRAMEWORKS, AND HYPOTHESES...............85
3.1 FORMULATION OF CONCEPTUAL FRAMEWORK.............................85
3.1.1 Process of Constructing a Conceptual Framework............................85
3.1.2 Identification of Key Concepts (Variables) from Literature
Review.......................................................................................................87
3.1.2.1 Identification of the TQM Practices Variables........................88
3.1.2.2 Identification of Organizational Performance Variables.........94
3.1.2.3 The Identification of ISO 9001:2008 variables.......................98
3.1.3 Conceptual Framework of the Study................................................99
3.2 HYPOTHESES DEVELOPMENT...........................................................100
x
3.2.1 Implementation of TQM Practices and Organizational
Performance............................................................................................102
3.2.1.1 TQM Implementation and Organizational Performance......102
3.2.1.2 TQM Practices, and Organizational Performance................104
3.2.2 ISO 9001 Certification and Organizational Performance...............112
3.2.3 Integrated TQM Implementation and ISO 9001 on Organizational
Performance............................................................................................114
3.2.4 TQM Implementation and ISO 9001 Certification.........................115
3.3 PROPOSED TQM FRAMEWORK OF THIS STUDY.............................116
CHAPTER 4 – RESEARCH METHODOLOGY.....................................................119
4.1 RESEARCH.............................................................................................119
4.1.1 Concept of Research, Research Methodology and Method............119
4.1.2 Purpose of the Research.................................................................120
4.2 RESEARCH PROCESS...........................................................................122
4.2.1 Research Onion.............................................................................122
4.2.2 Research Philosophies...................................................................123
4.2.3 Research Approaches.....................................................................128
4.2.4 Research Strategies........................................................................130
4.2.5 Research Choice............................................................................133
4.2.6 Research Time Horizons................................................................135
4.3 DATA COLLECTION AND ANALYSIS.................................................136
4.3.1 Research Data.................................................................................136
4.3.1.1 Secondary Data....................................................................136
4.3.1.2 Primary Data........................................................................137
4.3.2 Sample Design and Sample Method..............................................139
4.3.2.1 Sampling Design Process....................................................139
4.3.2.2 Population and Sampling Frame of the Study.......................140
4.3.2.3 Sampling Method.................................................................143
4.3.2.4 Sample Size..........................................................................147
4.3.3 Research Instrument Development................................................149
4.3.3.1 Survey Questionnaire Design..............................................149
4.3.3.2 Construction and Structure of the Questionnaire.................153
4.3.3.3 Development of Questionnaire Scale...................................155
4.3.3.4 Pilot Study............................................................................157
4.3.3.5 Reliability and Validity of the Instrument............................157
4.3.3.6 Administration of the Survey...............................................160
4.4 DATA ANALYSIS....................................................................................161
4.4.1 Data Management.........................................................................161
4.4.2 Data Analysis Techniques.............................................................161
4.5 SUMMARY OF SELECTED RESEARCH METHODOLOGY..............165
xi
CHAPTER 5 – DATA COLLECTION AND ANALYSIS.........................................166
5.1 DEMOGRAPHIC INFORMATION........................................................167
5.1.1 Response rate.................................................................................167
5.1.2 Demographic characteristics of the respondents according to
Gender....................................................................................................168
5.1.3 Age distribution of the respondents................................................168
5.1.4 Demographic characteristics of the respondents according to work
experience...............................................................................................169
5.1.5 Demographic characteristics of the respondents according to
educational background..........................................................................170
5.1.6 Demographic characteristics of the respondents according to Job
Designations...........................................................................................171
5.1.7 Demographic characteristics of the respondents according to
organizational level.................................................................................172
5.1.8 Demographic characteristics of the respondents according to
principal classification of the construction companies............................172
5.1.9 Demographic characteristics of the respondents according to the
implementation of formal TQM framework............................................173
5.1.10 Demographic characteristics of the respondents according to the
main reason for being an ISO 9001 certified construction firm...............173
5.1.11 Demographic characteristics of the respondents according to the
length of ISO 9001 certification..............................................................174
5.2 RESEARCH INSTRUMENT RELIABILITY AND VALIDITY.............175
5.2.1 Procedure for analyzing the reliability and validity of research
instrument...............................................................................................175
5.2.2 Content validity Analysis...............................................................177
5.2.3 Reliability Analysis........................................................................180
5.2.4 Construct validity analysis.............................................................182
5.2.4.1 Principal component analysis for TQM CSFs
implementation................................................................................185
5.2.4.2 Principal component analysis for ISO 9001 certification...191
5.2.4.3 Principal component analysis for organizational performance
indicators.........................................................................................195
5.2.5 Criterion-related analysis...............................................................199
5.2.5.1 Correlation analysis between TQM CSFs and organizational
performance ....................................................................................200
5.2.5.2 Correlation analysis between ISO 9001 and organizational
performance....................................................................................201
5.3 RELATIONSHIP BETWEEN DATA ANALYSIS AND RESEARCH
OBJECTIVES................................................................................................202
5.4 DESCRIPTIVE STATISTICS..................................................................204
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5.4.1 Normality analysis........................................................................204
5.4.2 Descriptive statistics analysis of TQM critical success factors
(CSFs).....................................................................................................206
5.4.2.1 Descriptive statistics on Leadership (L)…...........................207
5.4.2.2 Descriptive statistics on Customer Focus (CF)....................208
5.4.2.3 Descriptive statistics on Process Management (PM)...........208
5.4.2.4 Descriptive statistics on Supplier Quality Management
(SQM).............................................................................................209
5.4.2.5 Descriptive statistics on Employee Involvement (EI)..........210
5.4.2.6 Descriptive statistics on Information and Analysis (IA).......211
5.4.2.7 Descriptive statistics on Training (T)..................................212
5.4.2.8 Status of implementing TQM CSFs across Large-scale
construction companies...................................................................212
5.4.3 Descriptive statistics for ISO 9001 certification.............................215
5.4.4 Descriptive statistics for organizational performance....................217
5.4.4.1 Descriptive statistics of the effects of TQM implementation on
organizational performance.............................................................217
5.4.4.2 Descriptive statistics for the effects of ISO 9001 on
organizational performance.............................................................218
5.4.4.3 Descriptive statistics for impact of TQM-ISO 9001 on
organizational performance.............................................................219
5.5 INFERENTIAL STATISTICS..................................................................221
5.5.1 Relationship of the statistical techniques used with each
hypothesis...............................................................................................221
5.5.2 Specifications of models for regression analysis............................222
5.5.3 Assumptions of the linear regression.............................................224
5.5.3.1 Normality and outliners.......................................................225
5.5.3.2 Linearity and homoscedasticity............................................226
5.5.3.3 multicollinearity...................................................................228
5.5.3.4 Sample size..........................................................................229
xiii
5.5.4. Effects of TQM implementation, and its CSFs on organizational
performance (Model I)............................................................................229
5.5.4.1. Checking the assumptions for Model I (Multiple linear
regression).......................................................................................230
5.5.4.2. Multiple regression analysis (Model I)...............................234
5.5.5. Impact of ISO 9001 certification on organizational performance
(Model II)...............................................................................................238
5.5.5.1. Checking the assumptions for Model II (Simple linear
regression).......................................................................................239
5.5.5.2. Simple regression analysis (Model II).................................241
5.5.6. Impact of integrated TQM-ISO 9001 on organizational performance
(Model III)..............................................................................................244
5.5.6.1 Checking the assumptions for Model III (Simple linear
regression).......................................................................................244
5.5.6.2 Simple regression analysis (Model III)................................247
5.6 EVALUATING HYPOTHESIZED RELATIONSHIP BETWEEN TQM
IMPLEMENTATION AND ISO 9001.............................../...........................249
5.7 SUMMARY OF THE RESULTS OF HYPOTHESES.............................250
CHAPTER 6 – DISCUSSION OF THE FINDINGS.................................................252
6.1 ANALYSIS OF DEMOGRAPHIC INFORMATION..............................253
6.1.1 Response rate.................................................................................253
6.1.2 Characteristics of participating individuals..................................254
6.1.3 Characteristics of participating construction firms........................256
6.2 LEVEL OF TQM PRACTICES (CSFs) IMPLEMENTATION IN
CONSTRUCTION INDUSTRY....................................................................258
6.3.IMPACT OF TQM IMPLEMENTATION, AND ITS SEVEN PRACTICES
(CSFs) ON ORGANIZATIONAL PERFORMANCE IN CONSTRUCTION
INDUSTRY....................................................................................................268
6.3.1 TQM implementation and organizational performance..................268
6.3.2. Leadership (L) and organizational performance...........................271
6.3.3 Training (T) and organizational performance.................................274
xiv
6.3.4. Customer focus (CF) and organizational performance..................276
6.3.5 Employee Involvement (EI) and organizational performance........279
6.3.6 Supplier Quality Management (SQM) and organizational
performance............................................................................................281
6.3.7 Information and Analysis (IA) and organizational performance....283
6.3.8 Process Management (PM) and organizational performance.........286
6.4 IMPACT OF ISO 9001 CERTIFICATION ON ORGANIZATIONAL
PERFORMANCE IN CONSTRUCTION INDUSTRY.................................288
6.5 IMPACT OF INTEGRATED TQM-ISO 9001 ON ORGANIZATIONAL
PERFORMANCE IN CONSTRUCTION INDUSTRY.................................293
6.6 CORRELATION BETWEEN TQM IMPLEMENTATION AND ISO 9001
CERTIFICATION IN CONSTRUCTION INDUSTRY.................................296
6.7 DEVELOPMENT OF AN EFFECTIVE FRAMEWORK FOR TQM
IMPLEMENTATION BASED ON THE FINDINGS....................................299
6.7.1 Development of an initial TQM framework based on secondary
data.........................................................................................................303
6.7.2 Empirical examination of initial TQM framework based on primary
data.........................................................................................................306
6.7.3 Arrangement of TQM components within a framework based on
TQM philosophy.....................................................................................309
6.7.3.1 Plan phase............................................................................312
6.7.3.2 Do phase.............................................................................314
6.7.3.3 Check phase.........................................................................317
6.7.3.4 Act phase.............................................................................319
CHAPTER 7 – SUMMARY OF FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS.............................................................................................322
7.1 SUMMARY OF RESEARCH STUDY AND BASIC FINDINGS...........322
7.2 KEY OUTCOMES BASED ON RESEARCH QUESTIONS POSED IN
THIS STUDY.................................................................................................325
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7.2.1 What is the status of TQM practices implementation of Large-Scale
(AA & AAA) construction firms in the Philippines?...............................325
7.2.2 What are the effects of TQM implementation, and ISO 9001
certification solely or conjointly on organizational performance (OP) in
construction companies?.........................................................................326
7.2.2.1 What is the impact of the implementation of vital TQM
practices as a whole, and also each of its CSFs on organizational
performance in construction industry?............................................327
7.2.2.2 What is the Impact of ISO 9001 certification on organizational
performance?...................................................................................328
7.2.2.3 What is the impact of integrated TQM–ISO 9001 on
organizational performance of construction companies?.................328
7.2.3 What is the relationship between ISO 9001 certification and TQM
implementation?.....................................................................................329
7.2.4 What can be the specifications of an optimal model for TQM
implementation that is adopted ISO 9001 as its TQM tool, in order to
achieve performance excellence continuously at project and enterprise
levels within Philippine construction companies?..................................329
7.3 GENERAL CONCLUSIONS...................................................................333
7.4 LIMITATIONS AND RECOMMENDATIONS FOR FURTHER
RESEARCH WORKS....................................................................................335
REFERENCES............................................................................................................340
APPENDICES.............................................................................................................359
xvi
LIST OF TABLES
Table 1.1 Theoretical knowledge gap from existing studies in TQM, ISO 9001, and
OP......................................................................................................................................6
Table 2.1 Quality management gurus...............................................................................23
Table 2.2 The comparison of guru's approaches...............................................................24
Table 2.3 Common themes comparison in international QAs..........................................29
Table 2.4 Analysis of Critical Success Factors in different TQM frameworks by various
authors.............................................................................................................................42
Table 2.5 The criteria of CPES in evaluating performance during construction and upon
its completion…………………………….......…………………………..………….….50
Table 2.6 The ranges of CPES ratings and their equivalent qualitative
descriptions……..............................................................................................................50
Table 2.7 Commonly utilized performance measures in the UK industries......................54
Table 2.8 Commonly selected KPIs by scholars from 26 TQM frameworks...................55
Table 2.9 The tools and techniques of TQM and its performance zones...........................59
Table 2.10 Numbers of ISO 9001 certificates issued for construction from 1993 to
2014.................................................................................................................................73
Table 2.11 Relevance of ISO 9001: 2008 with TQM
elements...........................................................................................................................79
Table 2.12 Summary and analysis of literature review in terms of the relationship
between ISO 9001 certification (ISO) and TQM, and their effects on Organizational
Performance (OP)............................................................................................................83
Table 3.1 List of seven most cited critical factors of TQM from past 37 TQM
frameworks......................................................................................................................89
Table 3.2 Ten most cited KPIs from 26 TQM frameworks that arranged based on
BSC..................................................................................................................................96
Table 3.3 A list of hypotheses.........................................................................................101
Table 4.1 Comparison of four philosophies in management research.............................127
Table 4.2 Relevant situation for different research strategies.........................................131
Table 4.3 Impact of various factors on choice of probability sampling
methods..........................................................................................................................145
Table 4.4 Sample size, confidence levels and confidence intervals for random
samples..........................................................................................................................149
Table 4.5 Main attributes of questionnaires....................................................................152
Table 4.6 Structure of questionnaire...............................................................................155
Table 4.7 Summary of selected research design elements..............................................165
Table 5.1 Analysis of the response rates for survey in AA and AAA construction
firms...............................................................................................................................167
Table 5.2 Distribution of the respondents according to Gender......................................168
Table 5.3 Distribution of the respondents according to Age..........................................168
Table 5.4 Distribution of the respondents according to Work Experience......................169
xvii
Table 5.5 Distribution of the respondents according to Educational Background..........170
Table 5.6 Distribution of the respondents according to Job Designations.......................171
Table 5.7 Distribution of the respondents according to the organizational level based on
PCAB.............................................................................................................................172
Table 5.8 Distribution of the respondents according to the principal classification of the
construction organizations based on PCAB...................................................................173
Table 5.9 Distribution of the respondents according to the implementation of formal TQM
models............................................................................................................................173
Table 5.10 Distribution of the respondents according to the most significant reason for
possessing ISO 9001 certificate.....................................................................................174
Table 5.11 Distribution of the respondents according to length of ISO 9001
certification....................................................................................................................175
Table 5.12 Results of the content validity analysis.........................................................179
Table 5.13 Guidelines for specifying the level of reliability of scales according to
Cronbach's alpha coefficient..........................................................................................180
Table 5.14 Reliability analysis for variables..................................................................182
Table 5.15 Guidelines for identifying the suitable levels to employ factor analysis (PCA)
according to KMO measure of sample adequacy............................................................184
Table 5.16 Results of Kaiser-Meyer-Olkin (KMO) and the Bartlett's test of sphericity for
TQM..............................................................................................................................186
Table 5.17 Total variance explained for TQM variables.................................................187
Table 5.18 Results of the rotated factor loadings for 35 items measuring TQM
implementation..............................................................................................................190
Table 5.19 Results of Kaiser-Meyer-Olkin (KMO) and the Bartlett's test of sphericity for
ISO 9001........................................................................................................................191
Table 5.20 Total variance explained for ISO 9001 variables...........................................192
Table 5.21 Results of the rotated factor loadings for 25 items measuring ISO 9001....194
Table 5.22 Results of KMO and the Bartlett's test of Sphericity for organizational
performance...................................................................................................................196
Table 5.23 Total variance explained for organizational performance variables…..........196
Table 5.24 Results of the rotated factor loadings for items of organizational performance
indicators.......................................................................................................................198
Table 5.25 Cohen's principle of correlation strength......................................................199
Table 5.26 Results of correlation analysis between TQM CSFs and organizational
performance...................................................................................................................201
Table 5.27 Results of correlation analysis between the ISO 9001 clauses and
organizational performance...........................................................................................202
Table 5.28 Normality analysis.......................................................................................206
Table 5.29 Descriptive statistics on Leadership (L)........................................................207
Table 5.30 Descriptive statistics on Customer Focus (CF).............................................208
Table 5.31 Descriptive statistics on Process Management (PM)....................................209
Table 5.32 Descriptive statistics on Supplier Quality Management (SQM)...................210
Table 5.33 Descriptive statistics on Employee Involvement (EI)...................................210
xviii
Table 5.34 Descriptive statistics on Information and Analysis (IA)................................211
Table 5.35 Descriptive statistics on Training (T)............................................................212
Table 5.36 Level of each of TQM CSFs in Large-scale construction firms.....................213
Table 5.37 Level of TQM implementation in Large-scale construction firms................214
Table 5.38. Different levels of TQM implementation in AA and AAA construction
firms...............................................................................................................................215
Table 5.39 Descriptive statistics on ISO 9001 certification............................................216
Table 5.40 Descriptive statistics for the impact of TQM on organizational
performance...................................................................................................................218
Table 5.41 Descriptive statistics for the impact of ISO 9001 on organizational
performance...................................................................................................................219
Table 5.42 Descriptive statistics for the impact of integrated TQM-ISO 9001 on
organizational performance...........................................................................................220
Table 5.43 Summary of methods that used to test each hypothesis.................................222
Table 5.44 Model I Summaryb.......................................................................................235
Table 5.45 ANOVAb for Model I...................................................................................235
Table 5.46 Correlation Coefficient between each of TQM CSFs and OP in Model
I......................................................................................................................................236
Table 5.47 Model II Summaryb......................................................................................242
Table 5.48 ANOVAb for Model II...................................................................................242
Table 5.49 Correlation Coefficient between ISO 9001 and organizational performance in
Model II.........................................................................................................................243
Table 5.50 Model III Summaryb.....................................................................................247
Table 5.51 ANOVAb for Model III.................................................................................248
Table 5.52 Correlation Coefficient between integrated TQM and ISO 9001 and
organizational performance in Model III........................................................................248
Table 5.53 Correlation between TQM implementation and ISO 9001 Certification…...250
Table 5.54 Result of hypotheses tests.............................................................................251
xix
LIST OF FIGURES
Figure 2.1 The four levels in the evolution of TQM.........................................................21
Figure 2.2 The MBNQ model, including seven basic criteria...........................................27
Figure 2.3 EFQM excellence model...............................................................................28
Figure 2.4 A framework to identify the levels of TQM implementation...........................37
Figure 2.5 The Balanced Scorecard (BSC).......................................................................52
Figure 2.6 Performance measurement framework...........................................................53
Figure 2.7 Mechanism of PDCA in ISO 9001..................................................................66
Figure 2.8 Model of a process-based quality management system...................................67
Figure 2.9 The TQM/QMS relationship in simple terms................................................81
Figure 3.1 Conceptual framework for this study.............................................................100
Figure 3.2 A model for Total Quality Management........................................................117
Figure 3.3 Proposed TQM framework for evaluation empirically..................................118
Figure 4.1 The research onion........................................................................................123
Figure 4.2 The cycle of research.....................................................................................129
Figure 4.3 Sampling frame distribution of AA and AAA construction companies in Metro
Manila............................................................................................................................142
Figure 4.4 Choosing statistical tests for parametric data................................................164
Figure 5.1 Developing a roadmap for the research instrument reliability and validity
analysis..........................................................................................................................176
Figure 5.2 Screen plot for TQM CSFs implementation..................................................188
Figure 5.3 Screen plot for ISO 9001 certification...........................................................193
Figure 5.4 Screen plot for organizational performance indicators.................................197
Figure 5.5. Example of curvilinear and linear relationships with standardized residuals by
standardized predicted values........................................................................................227
Figure 5.6 Examples of homoscedasticity and heteroscedasticity..................................228
Figure 5.7 Histogram- Normality of dependent variable (Model I)................................231
Figure 5.8 Normal P-P Plot of Regression Standardized Residual in Model I................231
Figure 5.9 Scatter-plot between Regression Standardized Predicted Value and Regression
Standardized Residual in Model I (TQM vs. OP)...........................................................232
Figure 5.10 Scatter-plot with the regression line between the implementation of TQM
CSFs and organizational performance...........................................................................238
Figure 5.11 Histogram- Normality of dependent variable (Model II).............................239
xx
Figure 5.12 Normal probability plots (P-P) of the independent variable (ISO 9001) in
Model II.........................................................................................................................240
Figure 5.13 Scatter-plot between Regression Standardized Predicted Value and
Regression Standardized Residual in Model II (ISO 9001 vs. OP).................................241
Figure 5.14 Scatter-plot with the regression line between ISO 9001 and organizational
performance...................................................................................................................243
Figure 5.15 Histogram- Normality of dependent variable (Model III)...........................245
Figure 5.16 Normal P-P Plot of Regression Standardized Residual in Model III............245
Figure 5.17 Scatter-plot between Regression Standardized Predicted Value and
Regression Standardized Residual in Model III (Integ.TQM-ISO 9001 vs. OP)............246
Figure 5.18 Scatter-plot with the regression line between integrated TQM-ISO 9001 and
organizational performance...........................................................................................249
Figure 6.1 Role of each of management paradigm in achieving performance
excellence......................................................................................................................308
Figure 6.2 An optimal TQM model for achieving performance excellence in the
construction industry......................................................................................................321
Figure 7.1 An optimal framework for obtaining non-stop performance excellence in
construction industry......................................................................................................332
xxi
LIST OF ABBREVIATIONS
TQM Total Quality Management QM Quality Management QMS Quality Management System ISO International Organization for Standardization CSFs Critical Success Factors SME Small and Medium Enterprise DP Deming Prize MBNQA Malcolm Baldrige National Quality Award EFQM European Foundation for Quality Management SMEs Small and Medium Enterprises PDCA Plan – Do – Check – Act QCs Quality Circles SPC Statistical Process Control SPSS Statistical Package for Social Sciences M Mean Sig. Significant P-value Probability Df Degrees of freedom F Factor Loadings β Beta SD Standard Deviation BEM Business Excellence Model KMO Kaiser-Meyer-Olkin
xxii
LIST OF APPENDICES
Appendix A – Survey Questionnaire..............................................................................388
Appendix B – Expertise Evaluation...............................................................................398
REFERENCES
Neyestani B., & Juanzon, J. B. P. (2017). “Effects of ISO 9001 Standard on Critical Factors of
Project Management in Construction Industry.”, Proceedings of 2017 Manila
International Conference on “Trends in Engineering and Technology” (MTET-17), pp.
53-57, Jan. 23-24, 2017 Manila, Philippines. Neyestani B., & Juanzon, J. B. P. (2017). “Impact of ISO 9001 Standard on the Quality Costs of
Construction Projects in the Philippines.”, Proceedings of 2017 Manila International
Conference on “Trends in Engineering and Technology” (MTET-17), pp. 58-63, Jan. 23-
24, 2017 Manila, Philippines. Neyestani, B., & Juanzon J. B. P. (2017). “ISO 9001 Standard and Organization's Performance:
A Literature Review.” International Journal of Advance Multidisciplinary Research, 4(2),
pp. 6-13. Neyestani, B., & Juanzon, J. B. P. (2016). “Identification of A Set of Appropriate Critical Success
Factors (CSFs) for Successful TQM Implementation in Construction, and Other
Industries,” International Journal of Advanced Research, 4(11), pp. 1581–1591. Neyestani, B. (2016). “Impact of ISO 9001 Certification on the Projects' Success of Large-Scale
(AAA) Construction Firms in the Philippines,” International Research Journal of
Management, IT & Social Sciences, 3(11), pp. 35-45. Neyestani, B., & Juanzon, J. B. P. (2016). “Developing an Appropriate Performance Measurement
Framework for Total Quality Management (TQM) in Construction and Other Industries.”
IRA International Journal of Technology & Engineering, 5(2), pp. 32-44. Neyestani, B. (2017, January). “Effects of ISO 9001 on Non-Financial and Financial Performance
in the Organizations: A Review,” http://dx.doi.org/10.2139/ssrn.2964208 Neyestani, B. (2017, March). “Seven Basic Tools of Quality Control: The Appropriate Quality
Techniques for Solving Quality Problems in the Organizations.,”
http://dx.doi.org/10.2139/ssrn.2955721 Neyestani, B. (2017, March). “Principles and Contributions of Total Quality Mangement (TQM)
Gurus on Business Quality Improvement,” http://doi.org/10.5281/zenodo.345428. Neyestani, B. (2017, March). “Quality Costing Technique: An Appropriate Financial Indicator
for Reducing Costs and Improving Quality in the Organizations,”
http://dx.doi.org/10.2139/ssrn.2949993 Neyestani, B. (2016, December). “Effectiveness of Quality Management System (QMS) on
Construction Projects,” http://doi.org/10.5281/zenodo.290272
1
CHAPTER ONE
INTRODUCTION
“If we knew what we were doing it wouldn't be research.” – Albert Einstein
1.1 BACKGROUND OF THE STUDY
Construction activity is recognized as one of the oldest human concerns and built
environments, which run the “entire system of human pursuits”, and activities (Hedre,
2010). Globally, the construction industry is the “backbone” of its “infrastructure”, and
“economy” (Metri, 2005). Construction industry considers as one of the main sectors that
contributes strongly to the Gross Domestic Profit (GDP) of any country (Anup et al.,
2015). In the Philippines, construction industry has a vital role in the social and economic
development. Doubtlessly, construction industry contributes to reduce unemployment
rate, promote economic growth, and generate new residential, non-residential and
infrastructure. Significantly, the share of construction industry to total GDP was 5.5
percent, and likewise almost 2 million jobs, or 5.9 percent of the total employment was
related to construction industry in the Philippines by 2012 (World Bank, 2013).
Over the past three decades, numerous government and business organizations have
been reported that construction industry in many parts of the world suffers from many
problems, especially for construction quality issues (Ali and Rahmat, 2010; Harrington
et al., 2012; Khattak and Arshad, 2015). Great amount of time, money and resources, both
human and material, are wasted each year in the construction industry for inefficiency, or
lack of quality management procedure (Polat et al., 2012). Similarly, the manufacturing
and service sectors had the same problems in the last decades, but they successfully
solved most of them by effective methodologies and techniques.
With the turn of the new millennium, the increasing effects of globalization and
competitive pressure have significantly generated a paradigm shift within construction
industry to change its performance by implementing Total quality management (TQM),