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CONTRIBUTION TO STATISTICAL MODELING: THE RELATIONSHIP BETWEEN QUALITY MANAGEMENT SYSTEM PROCESSES AND FINANCIAL PERFORMANCE
Keywords:
quality management system ‘QMS’, structural equations, partial least squares ‘PLS’, financial performanceDOI:
https://doi.org/10.17654/0972361724040Abstract
In Morocco, the service sector contributes to more than 50% of the national wealth. However, we observe that measuring the impact of the Quality Management System on financial performance of its companies is often overlooked. Therefore, our research aims to fill this gap.
We have developed a causal model that quantifies the intensity of cause-and-effect relationships between:
- Processes of a quality management system and financial performance.
- Organizational performance and financial performance.
This model is established using Structural Equation Modeling (SEM) and estimated through the Partial Least Squares (PLS) approach using the XL-Stat software.
It is worth noting that this research is based on a strong theoretical foundation and meticulous qualitative and quantitative empirical treatment. An exploratory investigation was conducted with several Moroccan service companies operating in different sectors such as transportation, logistics, banking, and telecommunications. The primary tool used was face-to-face surveys with multiple executives.
The findings of this research validate our conceptual model, revealing that:
- Certain processes within the quality management system positively and weakly correlate with financial performance.
- Certain processes have no significant impact on financial performance.
- Organizational performance strongly and positively impacts financial performance.
This research contributes to enhancing the understanding of the dynamics between Quality Management Systems and financial performance in the Moroccan service sector.
Received: March 1, 2024
Accepted: April 6, 2024
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