The Comparative Significance of Contingencies to Quality Management

Abstract

The purpose of this research is to examine the relative effect of contingencies such as organizational characteristics and business environment on the implementation of quality management system in business. The predictor variables affect the adoption of quality management system at different levels. Nonetheless, these influential levels have not been assessed and compared amongst the predictor variables. This research uses the analytic hierarchy procedure to evaluate and rank the comparative importance that the predictor variables play in implementing quality management system in business. Then for the robustness of the findings from the analytic hierarchy procedure, this research also employs mean-test procedures to re-assesses the relative importance levels. The findings are robust across the two methods. Organizational characteristics are more important than business environment in explaining the implementation of quality management system. Of the twelve elements of organizational characteristics and environmental uncertainty, decentralization is the most imperative; whereas technology is the least essential. This research has some implications on how business executives should adopt quality management system facing different types of organizational characteristics and business environment.