TQM and service quality: a survey of commercial banking industry in Malaysia

The objective of this paper is to examine the association between Total Quality Management (TQM) practices and service quality in Malaysia's commercial banking industry. This study is based on empirical data collected from a survey of 101 middle management employees of 20 commercial banks in Malaysia. Multiple regression analysis was used to examine the relationship between the dimensions of TQM and service quality. The results revealed that TQM dimensions such as leadership, strategic planning, information analysis and human resource management are significantly and positively associated with service quality. The human resource management, a perceived dominant TQM practice for improving service quality levels, was found to be significant. The results of this study can be used by banking industry to prioritise the adoption of the dimensions of TQM practices. For instance, those practices that were found to have positive association with service quality can be recommended to senior management so that appropriate resources are allocated to further enhance these practices, and more importantly, to achieve higher quality of service.