The correlation between quality change management and process implementation with financial and non-financial market performance in south-eastern Europe companies

Abstract

This study aims to analyze the impact of overall quality management on company performance by examining the relationship between operational performance and customer orientation, commitment to top management, employee focus on the job, and process approach. The study employs a quantitative approach using statistical analyses, such as KMO and Bartlett's factor analysis, correlation analysis and t-tests to test the research econometric model. The results revealed a positive correlation between operational performance (financial and non-financial) and customer orientation with a coefficient of 0.164. Additionally, the study found a significant correlation between commitment to top management (coefficient p = 0.654), employees’ focus on the job (coefficient p = 0.378), and process approach (coefficient p = 0.387). Overall quality management can be considered a strategic commitment of a company to create value for customers and owners based on quality. The commitment of top management to continuously improve the quality of all aspects of the business is crucial in achieving this goal. The study's findings suggest that companies can benefit from implementing overall quality management practices to improve their performance. By prioritizing customer orientation, committing to top management, and focusing on employee job satisfaction and process approach, companies can create a competitive advantage through their commitment to quality.