Impact of quality management practices on performance stimulating growth: Empirical evidence from Indian IT enabled service SMEs

Abstract

Purpose

The purpose of this paper is to explore and identify the contextual quality management practices (QMP) and to empirically examine their underlying dimensions and its direct influence or association with performance in context to Indian IT enabled service small- and mid-size enterprises (SMEs).

Design/methodology/approach

The methodology adopted in this study is sequential exploratory mixed method approach. This study adopts two stage processes of capturing data, first identifying critical QMP/indicators as obtained from review of literature, followed by in-depth interview based on semi-structured questionnaire from sample of 20 select service SMEs. Based on comprehensive compilation of literature as well as through in-depth interview 21 QMP have been identified. Structured instrument has been developed taking measures as identified. The QMP relevant to SMEs have been derived from Kaynak (2003), Samat et al. (2006), Salaheldin (2009), Kim et al. (2012) and Talib et al. (2013b). The research instrument developed was customised and adapted to the background of Indian IT enabled service SMEs. Similarly for measuring quality performance five items have been identified from previous literature. Five-point Likert scale ranging from “5=strongly agree” to “1=strongly disagree” is used to show the agreement of the respondents. Exploratory factor analysis has been deployed to identify underlying dimensions of QMP. Thereafter, linear regression modelling has been done to better understand the relationships between QMP and quality performance.

Findings

A three-factor solution has been obtained and the individual practices could be reconfigured into three dimensions, namely, organisational management, capacity management and quality documentation and security management (QDSM). The findings reflect that strength of Indian IT enabled service SMEs pertaining to quality implementation lie with customer focus, training and service-level management (SLM). Regression analysis shows that all three factor dimensions are positively influencing quality performance. The predictor score of three factor dimensions clearly reflects that Indian SMEs in service sectors have been focusing more on organisational culture and QDSM. The overall findings resemble very interesting insights which gives indication of unstructured pattern of approach. Keeping in view the pattern of practices it can be predicted that Indian digital SMEs are not practicing continuous improvement. It could be inferred that Indian IT enabled service SMEs approach is non-continuous in nature.

Research limitations/implications

Further analysis may be needed to measure the construct using confirmatory factor analysis (CFA). The research paper is limited by including only six service sub-sectors which may not be adequate to generalise the results for the entire IT enabled/digital service SMEs within India. The same study can be extended by incorporating more quality management (QM) variables and other contextual factors within the organisation and by involving other service sector SMEs. Future research could be done by incorporating multi-contingency framework and moreover researchers may deploy other sophisticated tools and techniques to investigate how individual QMP are interrelated and its influence on performance by means of linkage research. The conceptual model developed can be validated by incorporating other service sector SMEs by deploying CFA and structural modelling.

Practical implications

This study could be beneficial to entrepreneurs and managers of start-ups and other service industries towards understanding improvement and changing their implementation approach. The theoretically grounded conceptual framework developed could provide entrepreneurial insights to new service managers and entrepreneurs who can better allocate their scarce resources to build quality and scalability effectively.

Originality/value

This study adds to the literature in identifying and showing importance of QMP in Indian IT enabled service SMEs. This choice is appropriate for this study as no prior research has been found to be conducted on this particular sector from Indian context, especially from service SMEs point of view. This research contributes in identifying new QMP (i.e. service reporting; content management; SLM and information and security management). Overall, the results of this study contribute towards advancing the understanding of the dimensionality of QM. To the best of the authors’ knowledge, this study is the first study being undertaken in context to Indian IT enabled service SMEs and is believed that the study provides valuable knowledge from the perspective of QM issues pertaining to Indian service firms.

Citation

Basu, R. and Bhola, P. (2016), "Impact of quality management practices on performance stimulating growth: Empirical evidence from Indian IT enabled service SMEs", International Journal of Quality & Reliability Management, Vol. 33 No. 8, pp. 1179-1201. https://doi.org/10.1108/IJQRM-10-2015-0153