Examining relationships between quality management and organisational performance in transitional economies

Abstract

The objective of this study was to determine the relationships between quality management dimensions and organisational performance in uncertain markets (transition conditions). The study was carried out in Serbia, using a sample of 160 certified organisations. The study was based on subjective estimates provided by quality managers. Structural equation modelling was used to examine the relationships between the dimensions of quality management and organisational performance. The results of this study indicate that the shortcomings of organisations' top managements probably significantly affect other elements of the model. The reasons for that may be a poor organisational culture and the influence of 'climate'. These assumptions and the results of the study point to the conclusion that the effects of ISO 9000 application in the considered conditions are arguable. The paper suggests considering 'climate' conditions in further research in this field. According to the findings, systematic improvement of organisational performance should include improving managers' commitment to quality management, effective quality planning, and organisational learning. © 2013 Taylor & Francis.