Luận văn thạc sĩ UEH key success factors of total quality management an empirical study in

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

------------

NGUYEN DUC DUY ANH

KEY SUCCESS FACTORS OF TOTAL QUALITY

MANAGEMENT – AN EMPIRICAL STUDY IN

VIETNAMESE PAINT AND COATING INDUSTRY

MASTER THESIS OF BUSINESS ADMINISTRATOR

HO CHI MINH CITY – 2012

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

------------

NGUYEN DUC DUY ANH

KEY SUCCESS FACTORS OF TOTAL QUALITY

MANAGEMENT – AN EMPIRICAL STUDY IN

VIETNAMESE PAINT AND COATING INDUSTRY

Subject: Master of Business Administrator

Code: 60.34.01.02

MASTER THESIS OF BUSINESS ADMINISTRATOR

SUPERVISOR:

Dr. NGUYEN THI NGUYET QUE

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i

Acknowledgement

This research would have not been completed without the incredible amount of

help and support from my supervisor, teachers, colleagues, customers, family

members and friends. I would like to express my profound thanks to all of you.

Foremost, my greatest gratitude is extended to my supervisor Dr. Nguyen Thi

Nguyet Que, who has given valuable guidance, advices and comments throughout

the whole period of this research. Needless to say, without her support, this

dissertation would not be either inspired or finished. I also would like to give

special words to all professors of the Economic University in HCM city has

teaching and support during study. Many thanks as well for the generous support

of my student colleagues who helped me in any respect during the completion of

the research.

My deep thank is also sent to my friends who are working in the paint and

coating industry for helping and supporting me collect information as well as

investigate and learn the practical experiences during the process of conducting

this dissertation.

Last but not least, I would like to take this opportunity to extend my great

gratitude to my beloved parents, family members and close friends for their

support and encouragement not only during the period of this research but also

for my whole life.

Nguyen Duc Duy Anh

Ho Chi Minh, Dec 2012

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ii

Commitment

I would like to commit that the thesis, “Key success factors of total quality

management – An empirical study in Vietnamese paint and coating industry”,

hereby declare that this research thesis is my own original work and that all

sources have been accurately reported and acknowledged, and that this document

has not been previously, the data was collected in reality and it has clear origins.

Nguyen Duc Duy Anh

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iii

Abstract

This study is an empirical examines key success factors of total quality

management (TQM) to the result of quality implementation in paint & coating

industry in Vietnam. TQM system helps the enterprise to identify the

relationships between TQM factors and the enterprise performances

(Sebastianelli, 2003).

The quantitative data were obtained through a survey from 260 quality managers,

top management managers, factory managers and purchasing managers of Paint

& coating manufacturing industry in Vietnam. The objectives of the research are

to provide the key success factors (KSF) and measure their relationship to the

quality implementation as Top management responsibility, Process design,

Employee training, Employee involvement, Benchmarking, and customer focus.

Then, the key findings will be provided and recommendations to enhance the

level of TQM in paint and coating enterprises.

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iv

Table of Contents

Acknowledgement................................................................................................... i

Commitment........................................................................................................... ii

Abstract .................................................................................................................iii

List of table .......................................................................................................... vii

List of figure......................................................................................................... vii

Chapter 1: Introduction .......................................................................................... 1

1.1.Introduction ...................................................................................................... 1

1.2.Backgrounds to the research ............................................................................ 1

1.3. Research issues, objectives and questions ...................................................... 4

1.3.1. Research issues............................................................................................ 4

1.3.2. Research objectives...................................................................................... 6

1.3.3. Research questions....................................................................................... 6

1.4.Research methodology and scope .................................................................... 6

1.5. Thesis structure ............................................................................................... 7

1.6. Conclusion....................................................................................................... 8

Chapter 2: Literature Reviews ............................................................................... 9

2.1. Introduction ..................................................................................................... 9

2.2. Total quality management............................................................................... 9

2.2.1. Definitions total quality management .......................................................... 9

2.2.2. Key success factors of TQM...................................................................... 10

2.3. Development of research model and hypothesis........................................... 14

2.3.1 Top management responsibility .................................................................. 14

2.3.2. Process design ............................................................................................ 14

2.3.3. Employee training ...................................................................................... 15

2.3.4. Employee involvement............................................................................... 16

2.3.5. Benchmarking ............................................................................................ 17

2.3.6. Customer focus........................................................................................... 18

2.3.7. Result of implementing quality management ............................................ 18

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2.4. Proposed research hypotheses and research model....................................... 20

2.4.1. Research Hypotheses ................................................................................. 20

2.4.2. Research Model.......................................................................................... 20

2.5. Conclusions................................................................................................... 21

Chapter 3: Research Methodology....................................................................... 23

3.1. Introduction ................................................................................................... 23

3.2. Research design............................................................................................. 23

3.3. Questionnaire development........................................................................... 24

3.3.1. Operationalization of measurement scales................................................. 24

3.3.2. Preparation of draft questionnaire.............................................................. 26

3.3.3. Questionnaire design.................................................................................. 27

3.4. Pilot study...................................................................................................... 28

3.5. Main survey................................................................................................... 28

3.5.1. Population and sampling............................................................................ 28

3.5.2. Questionnaires administration.................................................................... 30

3.5. Data analysis techniques............................................................................... 30

3.5.1. Data cleaning.............................................................................................. 30

3.5.2. The reliability of the survey’s results......................................................... 31

3.5.3. Exploratory factor analysis (EFA) ............................................................. 31

3.5.4. Correlation analysis.................................................................................... 33

3.5.5. Multiple linear regression (MLR) analyses ............................................... 33

3.6. Conclusion..................................................................................................... 34

Chapter 4: Data analysis and result...................................................................... 35

4.1. Introduction ................................................................................................... 35

4.2. Data cleaning, Data filer and Sample description......................................... 35

4.1.1. Data cleaning and data filter ...................................................................... 35

4.2.2. Sample description ..................................................................................... 36

4.3. Reliability test of measurement..................................................................... 38

4.4. Exploratory factor analysis (EFA) ................................................................ 41

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vi

4.5. Testing the research model and the hypothesis............................................. 45

4.5.1. Testing the correlations of the constructs .................................................. 45

4.5.2. Testing assumptions of Linear Regression ................................................ 46

4.6. Multiple Linear Regression Analysis............................................................ 47

4.7. Conclusion..................................................................................................... 51

Chapter 5: Conclusions and implications............................................................. 52

5.1. Introduction ................................................................................................... 52

5.2. Discussion of findings................................................................................... 52

5.3. Implications................................................................................................... 54

5.3.1. Theoretical implications............................................................................. 54

5.3.2. Practical implications................................................................................. 55

5.4. Limitation of the research ............................................................................. 56

5.5. Conclusion..................................................................................................... 57

Bibliography......................................................................................................... 58

Appendix 1: Survey of Questionnaires – English version ................................... 61

Appendix 2: Bảng khảo sát – Phiên bản tiếng Việt ............................................. 64

Appendix 3: Descriptive statistics of variables.................................................... 67

Appendix 4: Measurement scales reliability of variables.................................... 67

Appendix 5: Exploratory Factor Analysis (EFA) ................................................ 71

Appendix 6: Correlations.................................................................................... 74

Appendix 7: Graphic analysis of regression assumptions ................................... 75

Appendix 8: Regression ....................................................................................... 77

Appendix 9: Responders interview list ............................................................... 78

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vii

List of table

Table 1: Key success factors of TQM...................................................................10

Table 2: Key success factors of TQM in some previous studies..........................12

Table 3: Research hypotheses...............................................................................20

Table 4: Measurement scale of variables..............................................................25

Table 5: Descriptive statistics on all factors .........................................................36

Table 6: The responder’s information...................................................................38

Table 7: Cronchbach's alpha values......................................................................39

Table 8: KMO and Barlett's Test ..........................................................................41

Table 9: Total variance explained .........................................................................43

Table 10: Rotated Component Matrix ..................................................................44

Table 11: Pearson Correlations.............................................................................46

Table 12: Regression when RIQ (Y) is dependent variable..................................48

Table 13: Results of testing hypothesis.................................................................50

List of figure

Figure 1: The market share in Vietnamese paint and coating industry...................4

Figure 2: Research Model .....................................................................................21

Figure 3: Research process....................................................................................23

Figure 4: The updated research model..................................................................51

Figure 5: The process of benchmarking................................................................55

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