The Mediated Moderated Role of Organizational Culture and Employee Involvement in the Relationship between Total Quality Management and Sustainable Organizational Performance

Abstract

This study aims to examine the relationship between total quality management (TQM) and sustainable organizational performance (SOP), focusing on the mediating effect of organizational culture (OC) and the moderating effect of employee involvement (EI) in the banking industry of Bangladesh. Based on these insights, a questionnaire was developed, and academicians, research scholars, and field experts of this sector checked it for reliability. The results were summarized and analyzed through Partial Least Squares Structural Equation Modeling 4.0. According to the analysis, the findings reveal the positive direct effect of TQM on OC and SOP. The results also indicate the positive indirect effect of OC while strengthening the relationship between TQM and SOP. The outcome also demonstrates the positive impact of EI in moderating the relationship between TQM and SOP. TQM programs, to be successful and achieve SOP, require EI through empowerment, creativity, capacity building, organizational vision, mission, participation in management, and a supportive OC of innovation and learning. From the contextual perspective, the paper adds value in its originality through its exploration of the relationships, both direct and indirect, of CSFs of TQM in the banking sector of Bangladesh, gaining a deeper understanding of how effective TQM practices increase the likelihood of SOP, and paying attention to how the factors of OC and EI would strengthen the relationship.