EFFECT OF TOTAL QUALITY MANAGEMENT ON CUSTOMER SATISFACTION

Purpose : The purpose of this research i s to provide an intermediate step to understand ing the complex relationship between total quality management and customer satisfact ion. This study presents research which examines the structural relationship between quality management and customer satisfaction in Korea. Specifically, the effects of quality m anagement, employee engagement, continuous improvement, and customer satisfaction are tested. We examined the research model and the research hypotheses basis for applying TQM theories. Methodology/Approach : This study examined a research model for quality management. A q uestionnaire was developed and survey data w as collected . The sample was chosen from the total population of organizations in the Korea. Responses were collected from 380 workers. The study adopts the Input - Transformation - Output (ITO) conce pt model to construct a variable research model which was tested by structural equation modeling (SEM) analysis . Findings : This research revealed that the benefit of establishing total quality management emerges from leadership and employee commitment so that organizations are able to gain a sustainable competitive edge and performance excellence. High levels of TQM have a significant, positive impact on customer - satisfaction. Research Limitation/implication : We have evaluated the customer satisfaction le vel using customer perceptions rather than relying on customers’ self - reported indicators. This may lead to statistical error. Upon examining this research, organizations should focus on TQM orientation thinking and execution. Originality/Value of paper : In the past, the relationships between total quality management (TQM), total quality activities , and customer satisfaction we re equivocal. In this study however, the researcher built a structural equation model based on TQM theories. Many firms have not considered TQM to be an appropriate tool for creating value and do not recognize its potential for strategic contribution . The study presents that the basic principle (TQM) and provides strategic implications.