Does transformational leadership influence TQM practices? A comparison analysis between manufacturing and service firms

Purpose: The purpose of this paper is to fill a gap in the existing literature that relates leadership style to total quality management (TQM) focus. Specifically, the study evaluates whether and how leadership style may affect the implementation of TQM practices. Design/methodology/approach: A structured questionnaire was used to collect data from employees of different organizations operating in the manufacturing (n = 156) and service sectors (n = 147). Exploratory and confirmatory factor analyses as well as structural equation modeling were adopted to test the hypothesized research model. Findings: The results revealed that transformational leadership has a positive impact in the implementation of TQM practices (e.g., customer focus, process management, human resource management, strategic planning and learning). It was also found that, regardless of industry type, manufacturing or service, transformational leadership has a significantly positive influence on TQM practices. In addition, it was noted that manufacturing companies showed a higher level of TQM practices than did service companies. Originality/value: This study represents, to the best of the author’s knowledge, the first empirical examination of the relationship between transformational leadership and TQM in the service and manufacturing industries, with the goal of determining the differences between these two sectors. The study's conclusions may be useful for service and manufacturing organizations in achieving more effective leadership in the implementation of TQM.