EFFECTS OF TOTAL QUALITY MANAGEMENT (TQM) ON FINANCIAL AND NON-FINANCIAL PERFORMANCE: EVIDENCE FROM HIGHER EDUCATIONAL SECTOR OF PAKISTAN

Abstract

Purpose: This research explores the causal linkage between TQM and financial performance or non-financial performance within the higher education sector of Pakistan. In this regard, the link between each element of total quality management, including tangibles, reliability, responsiveness, assurance, and empathy, was explored and empirically analyzed concerning financial and non-financial performance. Methodology: The regression and correlation statistical measures, using SPSS version 20.0, were used to study the linkage of TQM with financial and non-financial performance. The study utilized a quantitative research approach for data collection purposes, and data was gathered from 220 employees of well-established higher educational institutes of Islamabad and Rawalpindi with the help of a directly administered survey approach. Results: The results support the causal linkage between TQM and financial or non-financial performance. The findings indicate that TQM has a significant positive link with the financial and non-financial performance of service organizations within the higher education sector of Pakistan. Applications of this study: The higher education industry is the backbone of every nation, especially the developing countries. The higher education sector of developing countries, such as Pakistan, has been facing issues of quality, and hence the implementation of TQM practices can have a considerable effect on its improvement. This study provides valued insights for higher education practitioners to revise policies for the positive growth and development of this sector. The Novelty of this study: The contribution of this research is the investigation of TQM practices on financial and non-financial performance of higher educational institutes of a developing nation, i.e. Pakistan, where it is relatively a new concept. It was found that TQM practices have a significant impact on financial and non-financial performance.