vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
viii
2
LITERATURE REVIEW
2.1
Introduction
14
2.2
Overview of the Malaysian and Thailand Automotive
Industry
15
2.2.1
Overview of the Malaysian Automotive Industry
15
2.2.2
Overview of the Thailand Automotive Industry
16
2.2.3
Comparison of Malaysian and Thailand
Automotive Industries
2.3
18
Quality and Total Quality Management
19
2.3.1
Quality in International Context
19
2.3.2
Quality Assessment Framework
23
2.3.2.1 Deming Prizes (DP)
24
2.3.2.2 European Quality Award (EQA)
24
2.3.2.3 Malcolm Baldrige National Quality
Award (MBNQA)
2.4
2.5
25
2.3.3
The Importance of Total Quality Management
26
2.3.4
TQM Evolution
28
2.3.5
TQM Definitions and Components
29
2.3.6
TQM in Malaysia
30
2.3.7
TQM in Thailand
31
2.3.8
TQM Research and Current Trends
33
ISO/TS16949
36
2.4.1
Background of ISO/TS16949
36
2.4.2
Relationship between ISO/TS16949 and TQM
38
Performance Management Systems (PMS)
40
2.5.1
PMS Definitions
40
2.5.2
PMS Evolution
41
2.5.3
Roles of Performance Measurement
43
viii
2
LITERATURE REVIEW
2.1
Introduction
14
2.2
Overview of the Malaysian and Thailand Automotive
Industry
15
2.2.1
Overview of the Malaysian Automotive Industry
15
2.2.2
Overview of the Thailand Automotive Industry
16
2.2.3
Comparison of Malaysian and Thailand
Automotive Industries
2.3
18
Quality and Total Quality Management
19
2.3.1
Quality in International Context
19
2.3.2
Quality Assessment Framework
23
2.3.2.1 Deming Prizes (DP)
24
2.3.2.2 European Quality Award (EQA)
24
2.3.2.3 Malcolm Baldrige National Quality
Award (MBNQA)
2.4
2.5
25
2.3.3
The Importance of Total Quality Management
26
2.3.4
TQM Evolution
28
2.3.5
TQM Definitions and Components
29
2.3.6
TQM in Malaysia
30
2.3.7
TQM in Thailand
31
2.3.8
TQM Research and Current Trends
33
ISO/TS16949
36
2.4.1
Background of ISO/TS16949
36
2.4.2
Relationship between ISO/TS16949 and TQM
38
Performance Management Systems (PMS)
40
2.5.1
PMS Definitions
40
2.5.2
PMS Evolution
41
2.5.3
Roles of Performance Measurement
43
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
viii
2
LITERATURE REVIEW
2.1
Introduction
14
2.2
Overview of the Malaysian and Thailand Automotive
Industry
15
2.2.1
Overview of the Malaysian Automotive Industry
15
2.2.2
Overview of the Thailand Automotive Industry
16
2.2.3
Comparison of Malaysian and Thailand
Automotive Industries
2.3
18
Quality and Total Quality Management
19
2.3.1
Quality in International Context
19
2.3.2
Quality Assessment Framework
23
2.3.2.1 Deming Prizes (DP)
24
2.3.2.2 European Quality Award (EQA)
24
2.3.2.3 Malcolm Baldrige National Quality
Award (MBNQA)
2.4
2.5
25
2.3.3
The Importance of Total Quality Management
26
2.3.4
TQM Evolution
28
2.3.5
TQM Definitions and Components
29
2.3.6
TQM in Malaysia
30
2.3.7
TQM in Thailand
31
2.3.8
TQM Research and Current Trends
33
ISO/TS16949
36
2.4.1
Background of ISO/TS16949
36
2.4.2
Relationship between ISO/TS16949 and TQM
38
Performance Management Systems (PMS)
40
2.5.1
PMS Definitions
40
2.5.2
PMS Evolution
41
2.5.3
Roles of Performance Measurement
43
viii
2
LITERATURE REVIEW
2.1
Introduction
14
2.2
Overview of the Malaysian and Thailand Automotive
Industry
15
2.2.1
Overview of the Malaysian Automotive Industry
15
2.2.2
Overview of the Thailand Automotive Industry
16
2.2.3
Comparison of Malaysian and Thailand
Automotive Industries
2.3
18
Quality and Total Quality Management
19
2.3.1
Quality in International Context
19
2.3.2
Quality Assessment Framework
23
2.3.2.1 Deming Prizes (DP)
24
2.3.2.2 European Quality Award (EQA)
24
2.3.2.3 Malcolm Baldrige National Quality
Award (MBNQA)
2.4
2.5
25
2.3.3
The Importance of Total Quality Management
26
2.3.4
TQM Evolution
28
2.3.5
TQM Definitions and Components
29
2.3.6
TQM in Malaysia
30
2.3.7
TQM in Thailand
31
2.3.8
TQM Research and Current Trends
33
ISO/TS16949
36
2.4.1
Background of ISO/TS16949
36
2.4.2
Relationship between ISO/TS16949 and TQM
38
Performance Management Systems (PMS)
40
2.5.1
PMS Definitions
40
2.5.2
PMS Evolution
41
2.5.3
Roles of Performance Measurement
43
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xviii
LIST OF ABBREVIATIONS
xxi
LIST OF APPENDICES
xxiii
INTRODUCTION
1.1
Background of Research
1
1.2
Problem Definition
4
1.3
Research Questions
5
1.4
Research Objectives
6
1.5
Scope and Assumptions
6
1.6
Significance of Research
7
1.7
Definition of Terms
8
1.8
Research Contributions
10
1.9
Outline of Thesis
11
1.10
Summary
13
viii
2
LITERATURE REVIEW
2.1
Introduction
14
2.2
Overview of the Malaysian and Thailand Automotive
Industry
15
2.2.1
Overview of the Malaysian Automotive Industry
15
2.2.2
Overview of the Thailand Automotive Industry
16
2.2.3
Comparison of Malaysian and Thailand
Automotive Industries
2.3
18
Quality and Total Quality Management
19
2.3.1
Quality in International Context
19
2.3.2
Quality Assessment Framework
23
2.3.2.1 Deming Prizes (DP)
24
2.3.2.2 European Quality Award (EQA)
24
2.3.2.3 Malcolm Baldrige National Quality
Award (MBNQA)
2.4
2.5
25
2.3.3
The Importance of Total Quality Management
26
2.3.4
TQM Evolution
28
2.3.5
TQM Definitions and Components
29
2.3.6
TQM in Malaysia
30
2.3.7
TQM in Thailand
31
2.3.8
TQM Research and Current Trends
33
ISO/TS16949
36
2.4.1
Background of ISO/TS16949
36
2.4.2
Relationship between ISO/TS16949 and TQM
38
Performance Management Systems (PMS)
40
2.5.1
PMS Definitions
40
2.5.2
PMS Evolution
41
2.5.3
Roles of Performance Measurement
43
viii
2
LITERATURE REVIEW
2.1
Introduction
14
2.2
Overview of the Malaysian and Thailand Automotive
Industry
15
2.2.1
Overview of the Malaysian Automotive Industry
15
2.2.2
Overview of the Thailand Automotive Industry
16
2.2.3
Comparison of Malaysian and Thailand
Automotive Industries
2.3
18
Quality and Total Quality Management
19
2.3.1
Quality in International Context
19
2.3.2
Quality Assessment Framework
23
2.3.2.1 Deming Prizes (DP)
24
2.3.2.2 European Quality Award (EQA)
24
2.3.2.3 Malcolm Baldrige National Quality
Award (MBNQA)
2.4
2.5
25
2.3.3
The Importance of Total Quality Management
26
2.3.4
TQM Evolution
28
2.3.5
TQM Definitions and Components
29
2.3.6
TQM in Malaysia
30
2.3.7
TQM in Thailand
31
2.3.8
TQM Research and Current Trends
33
ISO/TS16949
36
2.4.1
Background of ISO/TS16949
36
2.4.2
Relationship between ISO/TS16949 and TQM
38
Performance Management Systems (PMS)
40
2.5.1
PMS Definitions
40
2.5.2
PMS Evolution
41
2.5.3
Roles of Performance Measurement
43
ix
2.5.4
PMS Models
2.5.5
Shortcomings of the Existing Performance
Measurement Systems
2.5.6
3
46
Relationship between TQM and Organizational
Performance
2.6
44
Summary
50
52
DEVELOPMENT OF RESEARCH MODEL AND RESEARCH
HYPOTHESES
3.1
Introduction
53
3.2
TQM Constructs
53
3.2.1
Analysis of Developed Constructs
54
3.2.2
Defining TQM Constructs
58
3.3
3.4
ISO/TS16949 Efforts
60
3.3.1
Control Plan
62
3.3.2
Management Tools and Techniques
63
3.3.3
Improvement Activity
65
3.3.4
Internal Audit
67
Organizational Performance Measures
68
3.4.1
Level of Satisfaction
69
3.4.1.1 Customer Satisfaction
69
3.4.1.2 Employee Satisfaction
71
Business Results
73
3.4.2.1 Product Quality Effectiveness
73
3.4.2.2 Financial Performance
74
3.4.2
3.5
Research Model
76
3.5.1
A Review on Structural Equation Modeling
76
3.5.2
A Proposed Research Model
80
3.5.3
Research Hypotheses
82
ix
2.5.4
PMS Models
2.5.5
Shortcomings of the Existing Performance
Measurement Systems
2.5.6
3
46
Relationship between TQM and Organizational
Performance
2.6
44
Summary
50
52
DEVELOPMENT OF RESEARCH MODEL AND RESEARCH
HYPOTHESES
3.1
Introduction
53
3.2
TQM Constructs
53
3.2.1
Analysis of Developed Constructs
54
3.2.2
Defining TQM Constructs
58
3.3
3.4
ISO/TS16949 Efforts
60
3.3.1
Control Plan
62
3.3.2
Management Tools and Techniques
63
3.3.3
Improvement Activity
65
3.3.4
Internal Audit
67
Organizational Performance Measures
68
3.4.1
Level of Satisfaction
69
3.4.1.1 Customer Satisfaction
69
3.4.1.2 Employee Satisfaction
71
Business Results
73
3.4.2.1 Product Quality Effectiveness
73
3.4.2.2 Financial Performance
74
3.4.2
3.5
Research Model
76
3.5.1
A Review on Structural Equation Modeling
76
3.5.2
A Proposed Research Model
80
3.5.3
Research Hypotheses
82
x
3.6
4
89
RESEARCH METHODOLOGY
4.1
Introduction
91
4.2
Research Design
91
4.3
Overall Structure of Research Methodology
92
4.4
Survey Methodology
95
4.4.1
Questionnaire Development
95
4.4.2
Expert Validation
102
4.4.3
Pilot Study
105
4.4.4
Population and Sampling of the Study
109
4.4.5
Data Collection
110
4.4.5.1 Treatment for Missing Data
112
4.4.5.2 Test of Response Bias
113
4.4.6
Reliability
114
4.4.7
Validity
115
4.4.8
Statistical Analysis
116
4.4.8.1 The SPSS
117
4.4.8.2 Structural Equation Modeling (SEM)
117
4.5
5
Summary
Summary
124
SURVEY RESULTS AND ANALYSIS
5.1
Introduction
125
5.2
Respondent General Descriptive Statistic
126
5.2.1
The Number of Year in Business
126
5.2.2
Types of Ownership
127
5.2.3
Number of Employees
128
5.2.4
Types of Products Manufactured
130
xi
5.3
5.2.5
Types of Quality System Certification
131
5.2.6
Current Position in the Company
131
Exploratory Factor Analysis (EFA)
132
5.3.1
EFA on TQM Constructs
133
5.3.1.1 Initial Solution Results
134
5.3.1.2 Rotated Component Matrix Results
134
EFA on Organizational Performance (OP)
136
5.3.2.1 Initial Solution Results
136
5.3.2.2 Rotated Component Matrix Results
137
EFA on ISO/TS16949 Efforts
138
5.3.3.1 Initial Solution Results
138
5.3.3.2 Rotated Component Matrix Results
139
5.3.2
5.3.3
5.4
5.5
Reliability Analysis
139
5.4.1
Reliability Analysis of TQM Constructs
140
5.4.2
Reliability Analysis of OP Measures
141
5.4.3
Reliability Analysis of ISO/TS16949 Efforts
141
Confirmatory Factor Analysis (CFA)
142
5.5.1
Confirmatory Factor Analysis – Single Factor
142
5.5.1.1 CFA: Single Factor for TQM Constructs
143
5.5.1.2 CFA: Single Factor for Organizational
Performance (OP) Measures
154
5.5.1.3 CFA: Single Factor for ISO/TS16949
Efforts
5.5.2
157
First Order Confirmatory – Multiple Factors
163
5.5.2.1 TQM Constructs with Eight Factors
164
5.5.2.2 Organizational Performance (OP)
Measures with Two Factors
170
5.5.2.3 ISO/TS16949 Efforts with Three
Factors
5.6
Conclusions on EFA, Reliability, and CFA
171
174
xii
5.7
Test of Hypotheses
5.7.1
Comparative Analysis of TQM Implementation
between Malaysia and Thailand
5.7.2
174
175
Analyzing the Effect of ISO/TS16949
Certification – Moderator
179
5.7.2.1 The Effect of ISO/TS16949 Certification
in Malaysia Automotive Industry
181
5.7.2.2 The Effect of ISO/TS16949 Certification
in Thailand Automotive Industry
5.7.3
184
Measuring the Impact of ISO/TS16949
Efforts – Mediator
188
5.7.3.1 Mediating Effect of ISO/TS16949
Efforts in Malaysia
190
5.7.3.2 Mediating Effect of ISO/TS16949
Efforts in Thailand
5.8
6
Summary
192
195
DISCUSSIONS AND IMPLICATIONS
6.1
Introduction
6.2
The Findings of TQM Constructs Measurement
Model
6.3
199
The Findings of ISO/TS16949 Efforts Measurement
Model
6.5
197
The Findings of Organizational Performance (OP)
Measurement Model
6.4
196
200
Comparisons of TQM Implementation between
Malaysia and Thailand
201
6.6
The Moderating Effect of ISO/TS16949 Certification
203
6.7
The Mediating Impact of ISO/TS16949 Efforts
208
xiii
6.8
6.9
7
Implications of the Study
211
6.8.1
Theoretical Implications
211
6.8.2
Managerial Implications
212
Summary
214
CONCLUSIONS AND RECOMMENDATIONS
7.1
Introduction
215
7.2
Research Contributions
215
7.2.1
Academic and Practical Contributions
215
7.2.2
Disseminations of Knowledge through Publications 216
7.3
Fulfillment of Research Objectives
219
7.4
Limitations of the Research
220
7.5
Recommendations for Future Research
222
7.6
Conclusions
223
REFERENCES
APPENDICES A - K
224
262 - 316
xiv
LIST OF TABLES
TABLE NO.
2.1
TITLE
Countries investigated and the number of corresponding articles
(Sila and Ebrahimpour, 2003)
2.2
PAGE
22
Research on comparative study in quality practices
implementation between countries from the year 2000 to 2007
23
2.3
Criteria for ISO 9000 and ISO 14000 certifications
24
2.4
The European Quality Award criteria
25
2.5
Malcolm Baldrige National Quality Award criteria
25
2.6
Criteria for Quality Management Awards
26
2.7
Summarized findings of studies
27
2.8
Summarized of performance measurement definition
41
2.9
Examples of PMS model and their critical problems
49
3.1
Constructs proposed from literature
55
3.2
Comparison of quality management constructs across
different studies
57
3.3
ISO/TS16949 efforts and their measurement items
61
3.4
Performance measures proposed by literature
69
3.5
Summary of past-related research using SEM approach
79
4.1
TQM constructs and their measurement items
96
4.2
ISO/TS16949 efforts and their measurement items
99
4.3
Organizational performance measures and their measurement
Items
4.4
102
Summaries of comments and suggestions from quality experts
and practitioners’
104
xv
4.5
Types of products manufactured
107
4.6
Types of quality system certification
108
4.7
Pilot results of internal consistency analysis for TQM constructs
108
4.8
Pilot results of internal consistency analysis for OP measures
108
4.9
Pilot results of internal consistency analysis for ISO/TS16949
Efforts
109
4.10
Summary of final dataset
113
4.11
Symbol in SEM
118
4.12
Recommended values of goodness-of-fit measures
121
5.1
The number of year in business for Malaysian respondents
126
5.2
The number of year in business for Thailand respondents
127
5.3
Percentage of type of ownership for Malaysian companies
127
5.4
Percentage of type of ownership for Thailand companies
128
5.5
Type of material used for Malaysia
130
5.6
Type of material used for Thailand
130
5.7
Types of quality system certification for Malaysia respondents’
131
5.8
Types of quality system certification for Thailand respondents’
131
5.9
Current position in the company for Malaysia respondents’
132
5.10
Current position in the company for Thailand respondents’
132
5.11
KMO and Bartlett's Test for TQM constructs
133
5.12
Results of total variance explained for TQM items
134
5.13
KMO and Bartlett's Test for OP measures
136
5.14
Results of total variance explained for OP items
137
5.15
KMO and Bartlett's Test for ISO/TS16949 efforts
138
5.16
Results of total variance explained for ISO/TS16949 efforts
139
5.17
Results of internal consistency analysis for TQM constructs
140
5.18
Results of internal consistency analysis for OP measures
141
5.19
Results of internal consistency analysis for ISO/TS16949 efforts
141
5.20
Regression weights of QL construct
145
5.21
Regression weights of CFS construct
146
5.22
Regression weights of QIA construct
147
xvi
5.23
Regression weights of HRD construct
149
5.24
Regression weights of SPM construct
150
5.25
Regression weights of SQM construct
151
5.26
Regression weights of QR construct
152
5.27
Regression weights of QA construct
154
5.28
Regression weights of LS construct
155
5.29
Regression weights of BR construct
157
5.30
Regression weights of CP factors
158
5.31
Regression weights of MTT factors
160
5.32
Regression weights of Improvement Activity factors
162
5.33
Regression weights of Internal Audit factors
163
5.34
Results of internal consistency analysis for QRA items
166
5.35
Regression weights of seven TQM constructs
167
5.36
Regression weights of two OP measures
171
5.37
Regression weights of three ISO/TS16949 efforts
173
5.38
Summarizes of EFA, reliability and CFA results
174
5.39
Assessment of multivariate normality
175
5.40
Descriptive of survey respondent
177
5.41
Correlations matrix between TQM constructs
177
5.42
Independent sample t-test for mean country TQM construct
comparison
5.43
Results of TQM implementation in Malaysian and Thailand
automotive industries
5.44
184
Standardized regression weight between TQM and OP for
“None ISO/TS16949 certification companies” in Thailand
5.47
182
Standardized regression weight between TQM and OP for
“ISO/TS16949 certification companies” in Malaysia
5.46
179
Standardized regression weight between TQM and OP for
“None ISO/TS16949 certification companies” in Malaysia
5.45
178
186
Standardized regression weight between TQM and OP for
“ISO/TS16949 certification companies” in Thailand
187
xvii
5.48
Standardized regression weight of path model for
Malaysia automotive industry
5.49
Direct (DE) and Indirect Effects (IE) analysis for Malaysia
automotive industry
5.50
194
The difference between eight-factor and seven-factor model
for TQM constructs
6.2
194
Direct (DE) and Indirect Effects (IE) analysis for Thailand
automotive industry
6.1
192
Standardized regression weight of path model for
Thailand automotive industry
5.51
191
198
Organizational performance (OP) measures with two-factor
model
199
6.3
ISO/TS16949 efforts with three-factor model
200
6.4
Correlations matrix between TQM constructs
202
6.5
The structural relationship between TQM and OP for
Malaysian automotive industries
6.6
204
The structural relationship between TQM and OP for
Thailand automotive industries
205
6.7
Summary results on moderating effect
207
6.8
Inner and outer regression weights for the structural relationship
between TQM and OP with a mediation of ISO/TS16949
efforts for Malaysian and Thailand automotive industries
6.9
209
Inner regression weights between latent variables in the
structural model for Malaysian and Thailand automotive
industries
210
xviii
LIST OF FIGURES
FIGURE NO.
1.1
TITLE
PAGE
The world vehicle market for year 2000 and projected for
2010 (The Malaysian Automotive Association, 2006)
3
1.2
Organization of the thesis
12
2.1
Modified TQM slope from ISO 9000 to TQM through
ISO/TS16949 (Cohen, 1995)
2.2
39
The evolutionary process of performance measurement
(Folan and Browne, 2005)
42
3.1
TQM constructs
56
3.2
ISO/TS16949 efforts
62
3.3
Customer satisfaction measures
71
3.4
Employee satisfaction measures
73
3.5
Product quality effectiveness measures
74
3.6
Financial performance measures
75
3.7
The model of the structural relationship between TQM and
two organizational performances (Prajogo and Sohal, 2004)
3.8
Conceptual SEM for Taiwan and Hong Kong data
(Lin et al., 2005)
3.9
77
77
A proposed theoretical structural equation model
(Sanchez-Rodriguez et al., 2006)
78
3.10
A proposed moderator research model
80
3.11
A proposed mediating research model
81
4.1
Overview of overall structure research methodology
94
4.2
Type of company ownership
106
xix
4.3
Distribution of companies according to number of employees
4.4
Six stage process for structural equation modeling
107
(Hair et al., 1998)
120
4.5
Flowchart of analysis steps
123
5.1
Distribution of Malaysian companies according to number
of employees
5.2
129
Distribution of Thailand companies according to number
of employees
129
5.3
QL- Statistic results and factor loading
144
5.4
CFS- Statistic results and factor loading
145
5.5
QIA- Statistic results and factor loading
147
5.6
HRD- Statistic results and factor loading
148
5.7
SPM- Statistic results and factor loading
149
5.8
SQM- Statistic results and factor loading
150
5.9
QR- Statistic results and factor loading
152
5.10
QA- Statistic results and factor loading
153
5.11
LS- Statistic results and factor loading
155
5.12
BR- Statistic results and factor loading
156
5.13
CP- Statistic results and factor loading
158
5.14
MTT- Statistic results and factor loading
159
5.15
Improvement activity- Statistic results and factor loading
161
5.16
Internal audit- Statistic results and factor loading
162
5.17
The output path diagram for eight factors TQM model
165
5.18
Modified TQM model: The output path diagram with
seven factors
169
5.19
The output path diagram for two factors OP model
170
5.20
The output path diagram for three factors ISO/TS16949 model
172
5.21
Research model – Moderator
180
5.22
The structural relationship between TQM and OP for
“None ISO/TS16949 certification companies” in Malaysia
5.23
The structural relationship between TQM and OP for
182
xx
“None ISO/TS16949 certification companies” in Malaysia
5.24
The structural relationship between TQM and OP for
“None ISO/TS16949 certification companies” in Thailand
5.25
183
185
The structural relationship between TQM and OP for
“None ISO/TS16949 certification companies” in Thailand
187
5.26
Research model – Mediator
189
5.27
Inner and outer regression weights for the structural relationship
between TQM and OP with a mediation of ISO/TS16949
efforts for Malaysia automotive industry
5.28
191
Inner and outer regression weights for the structural relationship
between TQM and OP with a mediation of ISO/TS16949
efforts for Thailand automotive industry
194
xxi
LIST OF ABBREVIATIONS
AGFI
Adjusted goodness of fit index
BOI
Board of investment
BR
Business results
CBU
Complete built-up
CFA
Confirmatory factor analysis
CFI
Comparative fit index
CFS
Customer focus and satisfaction
CKD
Complete knocked-down
CP
Control plan
DP
Deming prize
EFA
Exploratory factor analysis
EQA
European quality award
FMEA
Failure mode and effect analysis
GFI
Goodness of fit index
HICOM
Heavy industries Corporation of Malaysia berhad
HRD
Human resource development
IATF
International automotive task force
KVP
Kelab Vendor Perodua
LS
Level of satisfaction
MACPMA
Malaysian Automotive Component Parts Association
MBNQA
Malcolm baldrige national quality award
MEM
Mitsubishi electric Malaysia
MTT
Management tools and techniques
OP
Organizational performance
PMQA
Prime minister quality award
PMS
Performance measurement system
xxii
PVA
Proton vendors Association
QA
Quality assurance
QFD
Quality function deployment
QIA
Quality information and analysis
QL
Quality leadership
QMS
Quality management system
QR
Quality results
QRA
Quality results and assurance
RMSEA
Root mean square error approximation
SEM
Structural equation modeling
SMEs
Small and medium enterprises
SPM
Strategic planning management
SPSS
Statistical package for social sciences
SQM
Supplier quality management
TLI
Tucker lewis index
TQA
Thailand quality award
TQM
Total quality management
TSC
Toyota supplier club
xxiii
LIST OF APPENDICES
APPENDIX
TITLE
PAGE
A
The survey instrument (English version)
262
B
List of international, national experts and pilot study companies
269
C
The survey instrument (Thailand version)
271
D
An example letter sent to quality experts
281
E
An example cover letter for pilot study
282
F
An example cover letter for final survey
283
G
An example cover letter for final survey (Thailand version)
284
H1
Results of total variance explained for TQM items
286
H2
Results of total variance explained for OP items
287
H3
Results of total variance explained for ISO/TS16949
288
I1
Summary results of rotated factor matrix – Varimax with
Kaizer Normalization (TQM)
I2
Summary results of rotated factor matrix – Varimax with
Kaizer Normalization (OP)
I3
289
290
Summary results of rotated factor matrix – Varimax with
Kaizer Normalization (ISO/TS16949)
291
J1
Results of reliability analysis for TQM constructs
292
J2
Results of reliability analysis for OP measures
297
J3
Results of reliability analysis for ISO/TS16949 efforts
299
K
Publications
302