The Effect of Quality Management Practices on Operational and Financial Performance

This empirical study aims to explore the correlation between quality management practices and operational and financial performance. Data was collected from 122 firms based in Tunisia and the results were analyzed using structural equation modeling precisely Partial Least Square methodology in order to leverage the approach of Preacher and Hayes to highlight the mediating role of operational performance in the relationship between quality management practices and financial performance. The current study aims to broaden the field of research on the application of quality management practices to Tunisian-based businesses in various industries that have received ISO 9001 certification and to apply structural equation modeling advances using SMART PLS software for a quality management practice study case. This paper shows practitioners the importance of the convenient implementation of quality management practices to support operational and financial performance. This paper presents an advanced approach as it takes into consideration the coherent selection of quality management practices and studies their effect on operational and financial performances of SME in different fields. The results showed that the internal process mediatizes both relationships between management practices and information management with financial results. Moreover, operational performance acts as a partial mediator between research and development and financial results.