Studying the Impact of Total Quality Management on Entrepreneurial Organizations' Performance (Case Study: Insurance Companies in Iran)

Abstract

Purpose: Iran's situation in its competitive market and developing economy has encouraged entrepreneurial industrial organizations to improve the quality of their products and services so that they can enter the world's competitive market. To do so, they need to incorporate some effective means, one of which is total quality management. Total quality management is both a culture and a series of strategic principles to ensure consistent progress in entrepreneurial organizations. Methods: This is a descriptive correlational study. The statistical population is 321 insurance employees in Tehran, Iran; 140 of these employees were randomly selected as a sample group by the use of the Morgan table. The Research tool is the Total Quality Management questionnaire that consists of the Organizational Performance Questionnaire by Kaplan and Norton (2001) and the Total Quality Management questionnaire by Wang et al (2012). Cranach's alpha method was applied to measure reliability, and the results were confirmed. To analyze the research data, inferential statistics were used including Kolmogorov–Smirnov test (K-S) for the normality of the data and the Regression method to test hypotheses. SPSS software was also used to analyze and process the research data. Conclusion: results indicate that Total Quality Management has a significant influence on organizations' performance including the performance of financial sections, organizations' customers, the internal process, and organizations' learning and progress.