TQM, employee outcomes and performance : the contingency effect of environmental uncertainty

Purpose: The purpose of this study is to investigate the relationship between total quality management (TQM), employee outcomes and performance. Moreover, how environmental uncertainty (EU) influences the relationship between employee outcomes and performance is regarded in the context of automobile part manufacturing and suppliers of Iran. Four theories namely resource-based view theory, ability, motivation, opportunity framework, contingency theory and quality management theory have been adopted in this research. Design/methodology/approach: A research project is conducted in 191 automobile part manufacturing and suppliers plants using the questionnaire method. Confirmatory factor analysis is applied to assess the reliability and validity of the measurement instrument. The correlations between latent constructs are examined through partial least squares method. Findings: The results show positive relationship between TQM, employee outcome and performance. The EU also moderates the relationship between employee outcome and performance. Research limitations/implications: It is recommended that some contextual factors such as culture be noticed in future research studies. Data were collected from Iranian automobile part manufacturing and suppliers plants, which may limit the generalization of results to other organizations in other countries. Practical implications: In this paper, some beneficial insights are addressed to assist managers in recognizing the organizational problems, which weaken implementing TQM, employee outcomes and the effect of EU on organizations. Social implications: By improving the quality of management practices and employee outcomes, the society gains benefits such as customer satisfaction. Originality/value: This study contributes to the TQM advance and human resource management literature and provides better foundations for employee outcomes improvement through TQM practices in the Middle East. By investigating the effect of EU, this study fills the current gap in this field.