The Effects of TQM Implementation in ISO 9001 Certified

Revision Number: 1 Revision Date: May 2014

1 | P a g e

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,”


Neyestani, B. (2016, December). “Effectiveness of Quality Management System (QMS)

on Construction Projects,” http://doi.org/10.5281/zenodo.290272

Signature: ____________________________

Date: ________________________________

https://dx.doi.org/10.2139/ssrn.2964208



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.

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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

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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


educational background..........................................................................170

5.1.6 Demographic characteristics of the respondents according to Job

Designations...........................................................................................171


organizational level.................................................................................172


principal classification of the construction companies............................172

5.1.9 Demographic characteristics of the respondents according to the

implementation of formal TQM framework............................................173


main reason for being an ISO 9001 certified construction firm...............173


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


5.4.4.3 Descriptive statistics for impact of TQM-ISO 9001 on


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

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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


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


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



http://doi.org/10.5281/zenodo.345428


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),

Documents

The Effects of TQM Implementation in ISO 9001 Certified