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The main goal of this study is to investigate the impact of total quality management (TQM) on the three pillars (economic, environmental and social) of sustainable performance in the Palestinian construction industry. More specifically, it first assesses the current implementation levels of TQM practices and the socio-economic and environmental sustainable performance metrics in the industry. Then, it specifies the correlational relationship between the implementation of the TQM practices and the sustainable performance in the construction industry in Palestine.

To this end, a quantitative research approach via a self-administered questionnaire approach was adopted, where six TQM practices have been obtained from the Malcolm Baldrige National Quality Award (MBNQA), with some adjustments made in accordance with their importance in the literature review. The targeted population is the construction firms in Palestine, where the data have been obtained from a sample of 66 supervisor engineers working in these firms through a quantitative questionnaire. Regarding the analysis of the conceptual framework and testing the proposed hypotheses, the structural equation modeling (SEM) has been adopted through Smart-PLS software.

The results indicate a positive and significant relationship between TQM practices and sustainable performance. More specifically, it has been found the levels of implementation of TQM practices and sustainable performance metrics were moderate. Also, it has been revealed that TQM practices positively impact the economic, environmental and social sustainable performance in the Palestinian construction industry.

Investigating the impact of TQM on sustainable performance in this unique challenging context provides a set of valuable implications that extend existing theories and practical guidelines for practitioners and policy makers in the construction industry. More specifically, the study highlights the TQM theory by proving its applicability and effectiveness in conflict-influenced and resource-limited contexts. It also contributes to the sustainable performance theory by integrating the three pillars of sustainable performance in the construction industry in a developing country. Practically, the study offers different stakeholders in this industry with practical actions and insights to facilitate the implementation of TQM to enhance sustainable performance.

This research bridges the gap between TQM and the three pillars of sustainable performance, especially in the construction industry in a developing country context with a unique particularity represented by complicated political instability, never-ending conflict and constrained-resources scarcity and access. This research also supports the TQM advocate’s argument that effective TQM deployment can dramatically improve sustainable organizational performance. Additionally, to the best of the authors' knowledge, this is the first study that addresses the impact of TQM and sustainable performance in the Palestinian construction industry and the one that adopted the PLS-SEM approach for analysis.