Title: TQM and service quality: a survey of commercial banking industry in Malaysia

Authors: Wen-Yi Sit, Keng-Boon Ooi, Siew-Phaik Loke, Garry Tan Wei Han

Addresses: Department of Network & Revenue, Malaysia Airlines, 1st Floor, Admin Building 3A, MAS Complex B, Sultan Abdul Aziz Shah Airport, 47200 Subang, Selangor, Malaysia. ' Faculty of Business & Finance, Universiti Tunku Abdul Rahman, Jalan University, Bandar Barat, 31900 Kampar, Perak, Malaysia. ' Faculty of Business Management, Universiti Teknologi MARA (UiTM), Campus Sri Iskandar, 32610 Bandar Baru Seri Iskandar, Perak, Malaysia. ' Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Jalan Universiti, Bandar Barat, 31900 Kampar, Perak, Malaysia

Abstract: The objective of this paper is to examine the association between Total Quality Management (TQM) practices and service quality in Malaysia|s commercial banking industry. This study is based on empirical data collected from a survey of 101 middle management employees of 20 commercial banks in Malaysia. Multiple regression analysis was used to examine the relationship between the dimensions of TQM and service quality. The results revealed that TQM dimensions such as leadership, strategic planning, information analysis and human resource management are significantly and positively associated with service quality. The human resource management, a perceived dominant TQM practice for improving service quality levels, was found to be significant. The results of this study can be used by banking industry to prioritise the adoption of the dimensions of TQM practices. For instance, those practices that were found to have positive association with service quality can be recommended to senior management so that appropriate resources are allocated to further enhance these practices, and more importantly, to achieve higher quality of service.

Keywords: TQM; total quality management; Malaysia; banking industry; commercial banks; middle management; multiple regression analysis; leadership; strategic planning; information analysis; human resource management; HRM; service quality levels; dominant practices; prioritisation; positive associations; senior management; resource allocation; economics; service industries; service quality management; developing nations; newly industrialised nations.

DOI: 10.1504/IJSEM.2011.037179

International Journal of Services, Economics and Management, 2011 Vol.3 No.1, pp.78 - 91

Published online: 30 Nov 2010 *

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