The Impact of Organisational Culture on the Implementation of TQM: Empirical Study in the Iranian Oil Company


Purpose of this paper is to investigate the relationship between four construct of organizational culture and two type of TQM as soft and hard in the Iranian oil industry. The method of confirmatory factor analysis was applied to refine culture and TQM scales for empirical analysis in Iranian Oil Industry. The structural equation modeling method was applied to test the theoretical models. This study confirms the results of previous studies that considered culture as a set of practices. It confirms that not all types of culture—considered as a set of practices—has a positive impact on the TQM implementation. Only two components of culture—hierarchal and developmental showed a negative impact on the soft and hard TQM. The findings are useful for business managers in developing countries such as Iran, who want to enhance business performance through implementing TQM practices in different culture. The study has contributed to develop a measurement system of TQM practices that facilitates more quality management research in developing countries. It has contributed to clarifying the disputed relationship between different culture and TQM practices, and shows empirical evidence in Iran industry to confirm that the culture set deployed by a firm has an impact on Soft and Hard TQM.

Share and Cite:

Karimi, Y. and Latifah Syed Abdul Kadir, S. (2012) The Impact of Organisational Culture on the Implementation of TQM: Empirical Study in the Iranian Oil Company. American Journal of Industrial and Business Management, 2, 205-216. doi: 10.4236/ajibm.2012.24027.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Al-Khalifa, K. N., Aspinwall, E. M. (2000). Using the competing values framework to identify the ideal profile for TQM: A UK perspective. International Manufacturing Technology and Management, 2(1-7), 1024-1040.
[2] Ally, N., Schloss, D. (2003). Quality management worldwide. Assessing quality management systems of Mexico’s maquiladoras. The TQM Magazine, 15(1), 30-36.
[3] Bardoel, E. A., Amrik, S. S. (1999). The role of the cultural audit in implementing quality improvement programs. The International Journal of Quality & Reliability Management, 16(3), 263.
[4] Batten, J. (1993). A total quality culture. Management Review, 83 (5), 61.
[5] Beer, M. (2003). Why total quality management programs do not persist: the role of management quality and implications for leading a TQM transformation. Decision Sciences, 34 (4), 623-642.
[6] Bennet, Fadil, & Greenwood. (1996). A Systems Approach to the Implementation of Total Quality Management. Total Quality Management, 7 (6), 631-665.
[7] Bright, K., & Cooper, C. L. (1993). Organisational culture and the management of quality. Journal of Managerial Psychology, 8(6), 21-27.
[8] Cameron, K. S., & Quinn, R. E. (1999). Diagnosing and changing organizational culture: based on the competing values framework: Addison-Wesley Publishing.
[9] Choi, T. Y., & Eboch, K. (1998). The TQM paradox: Relations among TQM practices, plant performance, and customer satisfaction. Journal of Operations Management, 17(1), 59-75.
[10] Crosby, P. B. (1979). Quality is Free. New York: McGraw-Hill.
[11] Dale, B. G. (1999). Self-Assessment: Guidelines for companies, Brussels, European Foundation for Quality Management (EFQM). Oxford: Blackwell Publishers.
[12] Deal, T., & Kennedy, A. (1982). Corporate cultures: The rites and rituals of organizational life. MA: Addison-Wesley Reading.
[13] Dean Jr, J. W., & Bowen, D. E. (1994). Management theory and total quality: improving research and practice through theory development. Academy of management review, 392-418.
[14] Deming, W. E. (1986). Out of Crisis. Cambridge: Cambridge University Press.
[15] Denison, D. R., Spreitzer, G.M. (1991). Organizational culture and organizational development: a competing values approach. Research in Organizational Change and Development, 5, 1-21.
[16] Detert, J. R., Schroeder, R. G., & Mauriel, J. J. . (2000). A framework for linking culture and improvement initiative in organizations. Academy of Management Review, 25(4), 850-863.
[17] Dow, D., Samson, D., Ford, D., & (1999). Exploring the myth: do all quality management practices contribute to superior quality performance. Production and Operations Management, 8(1), 1-27.
[18] Easton, G., Jarrell, S. (1998). The effects of total quality management on corporate performance: an empirical investigation. The Journal of Business, 71(2), 253-307.
[19] Edward, W. G., Jr. (1999). Organizational culture, TQM, and business process reengineering An empirical comparison. Team Performance Managemen, 5(5), 164.
[20] Feigenbaum, A. V. (1991). Total Quality Control, (Vol. 3rd rev. ed). New York, NY: McGraw-Hill.
[21] [Goffee, R., & Jones, G. (1998). The Character of a Corporation. London: Harper Business.
[22] Goldman, A. (1994). The Centrality of Ningensei to Japanese Negotiating and Interpersonal Relationships;Implications for US-Japanese.
[23] Hackman, J. R., & Wageman, R. (1995). Total quality management: Empirical, conceptual, and practical issues. Administrative Science Quarterly, 309-342.
[24] Hair, J. F., Anderson, R. E., Tatham, R. L., Black, W. C., & Babin, B. J. (2006). Multivariate analysis (6th ed) New Jersey: Pearson Education Inc.
[25] Hansen, G., Wernerfelt, B. (1989). Determinants of firm performance: the relative impact of economic and organizational factors. Strategic Management Journal, 10(3), 399-411.
[26] Harris, S. G. (1994). Organizational culture and individual sensemaking: A schema-based perspective. Organization Science, 5(3), 309-321.
[27] Hellsten, U., Klefsj?, B. (2000 ). TQM as a management system consisting of values, techniques and tools. The TQM Magazine, 12(4), 238-255.
[28] Henri, J. F. (2006). Organizational culture and performance measurement systems. Accounting, Organizations and Society, 31(1), 77-103.
[29] Hoffman, N., Klepper, R. . (2000). Assimilating new technologies: The role of organizational culture. Information System Management, 17(2), 36-42.
[30] Hofstede, G. H. (1984). Culture's consequences: International differences in work-related values (Vol. 5): Sage Publications, Inc.
[31] Idris, M., McEwan, W., & Belavendram, N. (1996). The adoption of ISO 9000 and total quality management in Malaysia. The TQM Magazine, 8(5), 65-68.
[32] Ishikawa, K. (1985). What is Total Quality Control? The Japanese Way. London: Prentice-Hall.
[33] Jabnoun, N., & Sedrani, K. . (2005). TQM, Culture, and Performance in UAE Manufacturing Firms. Quality Management Journal, 12(4), 10 -16.
[34] Johnson, G. (1993). Managing Strategic Change -Strategy, Culture and Action. Long Range Planning, 25(1), 28-36.
[35] ung, J. Y., & Hong, S. (2008). Organizational citizenship behaviour (OCB), TQM and performance at the maquiladora. International Journal of Quality & Reliability Management, 25(8), 793-808.
[36] Juran, J. (1988). Quality Control Handbook. New Yourk: McGraw Hill.
[37] Juran, J., & Gryna, F. (1993). Quality analysis and planning. Quality analysis and planning.
[38] Kanji, G. K. (1997). Total quality culture. Total Quality Management, 8(6), 417-428.
[39] Kaye, M., Dyason, M (1997). East meets West in the quality management experience. Quality World, 23(8), 648-652.
[40] Kim, P. S., Pindur, W., and Reynolds, K. (1995). Creating a new organizational culture: The key to total quality management in the public sector. International Journal of Public Administration, 18(4), 667-709.
[41] Kumar, V., Choisne, F., de Grosbois, D., & Kumar, U. 2009. Impact of TQM on company’s performance. International Journal of Quality & Reliability Management, 26(1): 23–37.
[42] Lagrosen, S. (2003). Exploring the impact of culture on quality management. International Journal of Quality & Reliability Management, 20(4), 473-487.
[43] Lascelles,D.M.,Dale,B.G.(1988).A Review of the Issues Involved in Quality Improvement.International Journal of Quality & Reliability Management, 5(5), 76-94.
[44] Martin, J. (1992). Cultures in Organizations–Three Perspectives. Oxford: Oxford University Press.
[45] McDermott, C. M., Stock, G.N. (1999). Organizational culture and advanced anufacturing technology implementation. Journal of Operations Management, 17, 521–533.
[46] Ngowi, A. (2000). Impact of culture on the application of TQM in the construction industry in Botswana. International Journal of Quality & Reliability Management, 17(4/5), 442-452.
[47] Oakland, J. S. (1993). Total Quality Management. Oxford: Butterworth-Heinemann.
[48] Peters, T. J., & Waterman, R. H. (1982). In Search of Excellence: Lessons from America's Best-Run Companies. New York: : Harper & Row.
[49] Powell, T. C. (1995). Total quality management as competitive advantage: A review and empirical study. Strategic Management Journal, 16(1), 15-27.
[50] Prajogo, D. I., Sohal, A.S. . (2003). The relationship between TQM practices, quality performance and innovation performance: an empirical examination. International Journal of Quality & Reliability Management Review, 20(8), 901-918.
[51] Prajogo, D. I., & McDermott, D.M. (2005). The relationship between total quality management practices and organizational culture. International Journal of Operations & Production Management, 25(11), 1101-1122.
[52] P rajogo, D. I., & McDermott, C. M. (2005). The relationship between total quality management practices and organizational culture. International Journal of Operations & Production Management, 25(11), 1101-1122.
[53] Quinn, R. E., & Spreitzer, G.M. . (1991). The psychometrics of the competing values culture instrument and an analysis of the impact of organizational culture on quality of life. Research in Organizational Change and Development, 1(5), 115-142.
[54] Quinn, R. E., & Kimberly, J. R. (1984). Paradox, planning, and perseverance: Guidelines for managerial practice. Managing organizational transitions, 295, 313.
[55] [Quinn, R. E., McGrath, M. R., Frost, P. J., & Moore, L. F. (1985). The transformation of organizational cultures: A competing values perspective.
[56] Quinn, R. E., & Rohrbaugh, J. (1983). A spatial model of effectiveness criteria: Towards a competing values approach to organizational analysis. Management Science, 363-377.
[57] Rad, A. M. M. (2005). A survey of total quality management in Iran: barriers to successful implementation in health care organizations. Leadership in Health Services, 18(3), 12-34.
[58] Schein, E. H. (1985). Organizational Culture and Leadership: A Dynamic View. San Francisco: Jossey-Bass Publishers.
[59] Schein, E. H. (1992). Organizational culture and leadership (2nd ed). San Francisco: Jossey-Bass.
[60] Schein, L. (1990). The road to total quality: views of industry experts.
[61] Shiba, S., Graham, A. and Walden, D. (1993). A new American TQM. Four practical revolutions in management. Portland Oregon,Centre for Quality Management ,Productivity Press.
[62] Shortell, S. M., O`Brien, J., Carman, J., Foster, R., Hughes, E.,Boerstler, H., & O`Connor, E. (1995). Assessing the impact of continuous quality improvement/total quality management: Concept versus implementation. Health Services Research, 30(2), 377-402.
[63] [63] Sila, I. (2007). Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study. Journal of Operations Management, 25(1), 83-109.
[64] Stock, G. N., McFadden, K. L., & Gowen, C. R. (2007). Organizational culture, critical success factors, and the reduction of hospital errors. International Journal of Production Economics, 106(2), 368-392.
[65] Strolle, A. (1991). Creating a total quality management culture is everyone’s business. Research Technology Management, 34, 8-9.
[66] Tata, J., Prasad, J. . (1998). Cultural and structural constraints on total quality management implementation. Total Quality Management, 9(8), 703-710.
[67] Terziovski, M. (2006). Quality management practices and the relationship with customer satisfaction and productivity improvement. Management Research News, 29(7).
[68] Terziovski, M., & Samson, D. (2000). The effect of company size on the relationship between TQM strategy and organisational performance. The TQM Magazine, 12(2), 144-149.
[69] Tylor, E. B. (1971). Primitive Cultures: Research into the Development of Mythology, Philosophy,Religion, Language, Art and Custom. J. Murray, London, 2 Vols. (1903).
[70] Wallach, E. (1983). Individuals and organization: the cultural match. Training and Development Journal, 12, 28-36.
[71] Wayne, A., Mooney, W., and Seldon, D.H. (1999). Culture change empowerment at Sweetheart Cup Company, Inc., bakery division. Hospital Material Management Quarterly, 21(1), 53-58.
[72] Wilkinson, A., Allen, P.,Snape, E. (1991). TQM and the Management of Labour. Employee Relations, 13(1), 24-31.
[73] Yeung, A. K., Brockbank, J.W., and Ulrich, D.O. . (1991). Organizational culture and human resource practices: An empirical assessment. Research in Organizational Change and Development, 5, 59-81.
[74] Zammuto, R. F., Krakower, J.Y. (1991). Quantitative and qualitative studies of organizational culture Research in Organizational Change and Development. 5, 83-114.
[75] Zeitz, G., Johannesson, R.,Ritchie, J.E. (1997). Employee survey measuring total quality management practices and culture. Group and Organization Management, 22(4), 414-444.
[76] Zu, X., Fredendall, L. D., & Robbins, T. L. (2006). Organizational Culture and Quality Practices in Six Sigma. Department of Information Sciences and Systems Morgan State University, Baltimore, MD, 21234.
[77] Zu, X., Robbins, T. L., & Fredendall, L. D. (2010). Mapping the critical links between organizational culture and TQM/Six Sigma practices. International Journal of Production Economics, 123(1), 86-106.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.