Introduction
This business research is on improving operations and business performance in the petroleum industry through quality management. The aim of this paper was to examine the effects of practices associated with quality management. This was in terms of operations and business performance, theory substantiation and development in quality management. The study also fixes the key success factors that affect the operations and business performance in the petroleum industry. This paper advances the literature on the practice of quality management in the petroleum industry.
Research Problem
Previous research in quality management has given valuable information on the effect of quality management on operations and business performance. However, less focus has been achieved with a specific industry (Parast et al, 2009). Because of the significant differences in construction development and research method, research in quality management has produced mixed results. These mixed results is because of researchers utilizing different theoretical frameworks for understanding the effect of quality management on firm performance. Besides, there is less consistency in selecting industries as the research context. While some have concentrated on manufacturing firms (Parast et al, 2009), there are some studies where firms in different industries have been mixed.
Very little industry-specific research has been done in quality management. Considering the mentioned limitation, more industry-specific research in quality management is needed to validate the effect of quality management on firm performance (Hill, 2008). This research therefore focuses on the petroleum industry and seeks to answer the following questions
- Do quality management practices affect performance?
- If yes, how does quality management affect firm performance?
This research tries to uncover some of the above drawbacks in the literature, addressing the practice of quality management and its result on operations and business performance in the petroleum industry.
Data collection methods used in this research
Survey instrument
A survey quality management instrument was used to collect information on quality management practices (Parast et al, 2009). Participants were asked to give information about their opinion of quality management practices. A five-point Likert scale where 1 ¼ very low, 2 ¼ low, 3 ¼ medium, 4 ¼ high, and 5 ¼ very high, 1 strongly disagree and 5 strongly disagree from strongly disagree, was used on the instrument
Instrument development and validation
A questionnaire to measure was developed after a conceptualizing the theoretical dimensions underlying quality practice. Data was collected in several countries and the sample divided randomly into half. On one half, testing and purification of the constructs were done. The other half was used as a handout sample to confirm the authenticity of the constructs (Parast et al, 2009). Structural equation modeling (LISREL) was then used to analyze.
Sample
Because of the major role it plays in the petroleum industry in the world, Iran was selected as the representative country. With help from the ministry of Petroleum, a list of organizations in the production and exploration section of the petroleum industry was solicited. 61 managers from the industry were identified and 32 surveys were received and used.
Result and conclusion
After multiple regression analysis, results showed that employee training and involvement were statistically significant thus explaining 46% of the variability in the internal quality results. This analysis also showed that only top management support was statistically significant.
It was concluded that Management support, employee involvement and employee training significantly contribute to performance results. Since top management plays a huge role in implementing quality practices, its support affects performance results though employee training and involvement.
Reference List
Hill, D. A. (2008). What Makes Total Quality Management Work: A Study of obstacles and Outcomes. Michigan: ProQuest Publishers.
Parast, M.M., Adams, G.S., and Jones, E.C. (2009). Improving Operational and Business Performance in the petroleum Industry through Quality Management. IJQRM, 28, 426 -450.