Process quality management and operational performance: exploring the role of learning and development orientation

Abstract

PurposeThe paper aims to assess the influence of process quality management (PQM) practices on a firm s operational performance (OP) and investigate the mediating role of a firm s learning and development orientation (LDO) in the PQM–OP relationship. The paper also assesses the extent to which the proposed mediation is moderated by senior management support (SMS).Design/methodology/approachThis paper draws on the sociotechnical system theory to carry out a survey study of 278 functional managers from various manufacturing firms in India through a postal mail survey approach. The response rate has been improved by frequent telephone follow-ups. The collected data was analyzed for mediation of LDO and moderated mediation of SMS in the proposed framework using Hayes s PROCESS Macro in statistical package for social sciences.FindingsThe research findings show that both PQM and LDO lead to better performance and should be encouraged. LDO was found to partially mediate the effect of PQM on the firm s OP. The results also show that an enhanced learning capability of an organization can significantly influence improvement in OP through a stronger support of senior management.Research limitations/implicationsThe current study explored the mediating role of LDO in the relationship between PQM and OP, while providing a future research opportunity for an empirical review of the mediating effect of LDO between the effects of just-in-time, maintenance and process benchmarking activities on OP.Practical implicationsTo transform PQM activities into a competitive advantage, firms need to develop learning capabilities. Senior managers in the manufacturing industry should strongly focus upon creating a learning-centered work culture to improve performance and productivity.Originality/valueThe study provides insights into the type of people-related activities that manufacturing firms should undertake to enhance their OP. Few studies in the extant literature have used SMS as a moderator to improve LDO s impact on business operations. The study aims at bridging this gap.