Strategy and quality management: an empirical study of Serbian industrial companies

Abstract

The study examines the impact of strategic factors on quality management in industrial companies. Basically, it was hypothesized that QM concept is not universally applicable, but strategy-dependent. Research comprised the sample of 111 Serbian industrial companies. A model is assumed for relation between strategy and QM critical factors; it is assumed that it is mediated through management style and employees behavior. Research instrument was developed, and preliminary data analysis was carried out to arrive at final model of relation between strategic, management style, employees behavior and QM factors. Final model data were subjected for reliability and validity analysis, so as to perform structural equation modeling, by means of which pathway and path coefficients in the model were determined. Context-dependent nature of QM concept has been proved by confirming direct impact of employees behavior, and by confirming accessory hypotheses for indirect impact of strategic and management style factors in the model. Adequate model of statistically significant relations was obtained, which, being a newly developed theoretical framework, provides inferring a range of new and practically checkable conclusions, as well as recommendations for applying QM in Serbian industrial companies. Strategy with risk taking elements is not appropriate for QM practice, while appropriate strategy elements include innovations, cost minimization and analytical elements, that exert influence on proactivity, long term planning and motivating as dimensions of management style. Employees behavior with its dimensions such as proactivity, good interpersonal relations and spirit of collectivism is dependant on management style and exerts influence on concept of QM.