Quality management and its relationship with organizational context and design

The research proposes a theory that organizational design mediates completely the effect of context on quality management. The results show that the greater the level of the organizational design variables (formalization, technocratic specialization, and strategic decentralization), the greater the level of quality management. The context variables of size, production technology (which varies from custom to flow production types), and product dynamism predict organizational design to varying extents. Statistical analysis shows that the indirect effect of size, production technology, and product dynamism on quality management are significant and positive. Direct effects of context on quality management were tested and found not to be significant. The conclusion is drawn that organizational design transmits the effect of context to quality management.