Simultaneous consideration of contingency factors and quality management: An empirical study of Serbian companies

Abstract

The aim of the present paper is to answer whether the QM concept is universal or context-dependent, organic or
mechanistic, and theoretical or practical in its essence.The study examines the impact of contingency factors
on quality management in Serbian companies in order to find out the possible causes of failure, that is
inadequate results of QM application and to recommend the companies how to harmonize their context with
TQM principles. The starting point is that QM concept is not universally applicable, but context-dependent, so
this is the reason why a model is assumed for relation between organizational contingency factors –
environment, demographic variables, strategy, management style, organizational structure, technology applied,
and employees’ behavior, and QM critical factors. The model was tested by the structural equation modeling
method using the sample of 111 Serbian industrial companies. Context-dependent nature of QM concept has
been proved by confirming basic research hypotheses, through direct impact of organizational structure and
employees’ behavior, and by confirming accessory hypotheses for indirect impact of other contingency factors,
such as environment, strategy, technology, and management style in the model. Quality management is directly
dependant of mechanistic organizational structure (relation strength 0.657) and organic employees’ behavior
(relation strength 0.520). The other contingency factors exert their influence indirectly through mediation (the
largest influence has strategy 0.500, followed by demographic variables and management style 0.380, then
technology 0.240, and finally environmental factors -0.280 on lower level of significance). The results indicate
that large companies achieve solid results relatively easily in QM area, while small- and medium-sized
companies cannot achieve solid QM practice through the pathway of demographic variables and organizational
structure. Therefore, it is recommendable for SMEs to take the “alternative road” through clearly defined
strategy without risk elements, which further impacts technology (so it can alleviate unfavorable environment
impact) and furthermore management style and employees’ behavior. Also, it is noticeable that in more
favorable environment the small-sized companies will additionally strengthen technology impact and thus
achieve better QM practice. The present work also indicates that it is needed to combine mechanistic and
organic principles, because high organizational structure with high formalization and specialization is a feature
of mechanistic approach, while proactive behavior of employees with a strong spirit of collectivism is a typical
feature of organic type.