TQM factors and organisational results in the EFQM excellence model framework : an explanatory and predictive analysis

Purpose: Within the framework of Total Quality Management (TQM) and the EFQM Excellence Model (EEM), the main objective of this paper is to develop a causal-predictive analysis of the relationships between soft and strategic-hard EFQM factors and the organisational results (customers, people, society and key results). Design/methodology/approach: From a causal-predictive perspective, four EEM models, designed for each organisational result, are compared applying partial least squares structural equation modelling (PLS-SEM) and using a sample with 225 Spanish organisations. Findings: The results confirm that soft and strategic-hard EFQM factors constitute a socio-technical system in which there are multiple direct and indirect relationships, between these factors and the results. Finally, the predictive nature of the proposed models is confirmed, highlighting the predictive performance of the people results model. Practical implications: The results can lead to an improvement in organisational performance, as the developed models enable managers to anticipate the effects of their management decisions on those results concerning customers, people, society and key business results. Originality/value: First, a novel way of grouping TQM enabler factors has been proposed within the EEM framework. Second, four research models have been generated, which allow carrying out an in-depth study of the direct and indirect relationships, between soft and strategic-hard EFQM factors and result variables. Finally, this contribution has applied the most updated techniques in order to assess the prediction performance of the four research models posited.