IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON

Running head: IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS
IMPACT ON CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
Implementation Of Total Quality Management And Its Impact On Customer Satisfaction In The
Textile Industry Of Romania
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IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
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Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Introduction............................................................................................................................4
1.2 Background of the study........................................................................................................5
1.2.1 Textile industry in Romania...........................................................................................5
1.2.2 Total Quality Management in textile..............................................................................6
1.2.3 Effect of Total Quality Management in textile and customer satisfaction.....................9
1.3 Aims of study.......................................................................................................................10
1.4 Objectives of the study........................................................................................................10
1.5 Problem statement...............................................................................................................11
1.6 Research questions...............................................................................................................11
1.7 Research Hypotheses...........................................................................................................11
1.8 Structure of the Study..........................................................................................................13
Chapter 4: Literature review..........................................................................................................14
4.1 Total quality management...................................................................................................14
4.2 Total Quality Management and customer satisfaction........................................................15
4.3 Implementation of Total Quality Management in SME business.......................................17
4.4 Quality tools and techniques of quality management..........................................................19
4.5 Failure of TQM....................................................................................................................21

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
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4.6 Organizational performance and TQM................................................................................23
4.7 Theories of TQM.................................................................................................................25
Chapter 3: Research Methodology................................................................................................27
3.1 Introduction..........................................................................................................................27
3.2 Outline of the Method..........................................................................................................27
3.3 Research Onion....................................................................................................................28
3.4 Research Philosophy............................................................................................................28
3.5 Research Approach..............................................................................................................29
3.6 Research Design..................................................................................................................29
3.7 Process of data collection....................................................................................................30
3.8 Sampling and Sample Size..................................................................................................31
3.9 Data Analysis Plan...............................................................................................................31
Chapter 4: Data Analysis, Results and discussion.........................................................................32
4.1 Descriptive statistics............................................................................................................32
4.2 Correlation analysis.............................................................................................................47
4.3 Regression Analysis.............................................................................................................49
Chapter 5: Conclusions, Recommendations, and suggestions for further work............................57
5.1 Conclusion...........................................................................................................................57
5.2 Recommendation.................................................................................................................58
5.3 Limitation and suggestion for future work..........................................................................59

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
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References......................................................................................................................................60

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
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Abstract
TQM is composite approach to improve efficiency, competitiveness and flexibility of an
organization to benefit customer satisfaction. Successful implementation of TQM in business
leads to high customer satisfaction and customer retention that is needed for development of any
business or industry. In a world of increasing global competition and a downward movement of
profit trend, focusing on quality remains an important source of profit of the organization. The
choice of customers toward a produce is based on acquired level of satisfaction. This necessitates
the need for Total Quality Management in meeting customer satisfaction and retaining customers
for a long period. The clothing and textile industry in Romania is a vital industry having several
companies operating for more than 100 years. The industry has successfully maintained its
traditional values since several years. Romania is situated on the penultimate place before
Bulgeria. When considered in terms of average value added of total labor cost in the textile
industry, Romania enjoys a better position than average textile and clothing industries in
European Union. If considered in terms of value added per worker, the share in Romania textile
is within 12 percent. Romania possessed 15 percent of untapped export potential in EU. In 2011,
the share of textile in Romania’s GDP was 3.22 percent. Romania has sufficient resources for
producing fibers, fiber silk, wool, flax, hemp bast fibers and various other types of fibers. The
textile industry in Romania though is one of the vital sector of the economy but lack of
technological innovation may hamper competitiveness of the industry in global market resulting
in future uncertainty. One way to overcome the uncertainty is to focus on improvement of quality
standard of the industry. In this connection the paper tries evaluate the impact of Total Quality
Management on customer satisfaction of textile industry in Romania. The two main research
questions are how total quality management influences overall quality of the industry and how

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
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different aspects of quality management influence customer satisfaction in the industry. The
result finds that Among different product quality aspects, the most important one is spinning
followed by fiber forming, knitting, weaving and dyeing and finishing. The statistically
significant factors affecting customer satisfaction are focus on quality improvement, dressing up
of employees, customers’ confidence and customers’ safety and availability of both national and
international brand in the industry. From the analysis, it can be said that as the industry focuses
on improving quality of product or service which is a part of total quality management, there is
an enhancement of customer satisfaction. The well-dressed employees in the textile also
increases customer satisfaction in the industry. In order to experience the benefits of TQM fully,
the industry should make significant investment in empowerment of employees and their
involvement. Assurance of a good quality, particular attention to individual customers,
responsible management system and other aspects related to an improved product and service
quality should be the focus of textile industries in Romania.

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
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Chapter 1: Introduction
1.1 Introduction
In any business, customers are considered as the king in the particular market. Every
business aims to maximize its profit through satisfying the customer as much as possible.
Services given by the organization after sales play a vital role in customer retention and customer
satisfaction (Gharakhani et al. 2013). Reliable service induces customers to believe on the
organization and stay connected with the organization for a longer duration. Once customers
received good quality products and service they spread the goodwill of the organization. In this
regard, Total Quality Management plays an important role. It is a management approach to
ensure a good quality (Ross 2017). The process is based upon the participation of all members of
the organization. This actually aims to attain a long term success for organization through
attaining customer satisfaction which in turn benefits members of the organization and the
society as a whole. The behavior of customers after the purchases depends on the service given
by the organization and its employees (Bon and Mustafa 2013). TQM works effectively with the
promise that product quality and process are the responsibilities of everyone involved on in the
creation and consumption of the good or service that the organization offers. This is to say that
TQM focuses on involvement of entire management, workers, suppliers and also customers to
meet expectation of the customers.
TQM is composite approach to improve efficiency, competitiveness and flexibility of an
organization to benefit customer satisfaction (Ali and Raza 2017). Excellent quality of product
and service helps to retain existing customers and also attract new customers. As a result,
successful implementation of TQM in business leads to high customer satisfaction and customer

IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT AND ITS IMPACT ON
CUSTOMER SATISFACTION IN THE TEXTILE INDUSTRY OF ROMANIA
7
retention that is needed for development of any business or industry. In a world of increasing
global competition and a downward movement of profit trend, focusing on quality remains an
important source of profit of the organization (Santouridis and Veraki 2017). Every customer
looks for best quality product and after sale service. The choice of customers toward a produce is
based on acquired level of satisfaction. This necessitates the need for Total Quality Management
in meeting customer satisfaction and retaining customers for a long period.
1.2 Background of the study
1.2.1 Textile industry in Romania
The clothing and textile industry in Romania is a vital industry having several companies
operating for more than 100 years. The industry has successfully maintained its traditional values
since several years. Some important companies in the textile industry of Romania are Carpatex
SA- Brasov, Ciserom SA Sebes, Fabrics SA – Buhusi Textile Olt SA- St. Gheorghe. The
competitive advantage of textile industry of Romania is long since reported in Europe (Florescu
and Ivanov 2016). The low cost of labor contributes to the comparative advantage of Romania’s
textile industry in Eurozone. Romania is situated on the penultimate place before Bulgeria. When
considered in terms of average value added of total labor cost in the textile industry, Romania
enjoys a better position than average textile and clothing industries in European Union. If
considered in terms of value added per worker, the share in Romania textile is within 12 percent
(Paraschiv, Tudor and Petrariu 2015). In a report published in 2012, conducted by DG Enterprise
and Industry, it was confirmed that Romania enjoyed significant comparative advantage in
textile industry. The report confirmed that among all other countries in European Union,
Romania has the largest export potential in its textile industry. Romania possessed 15 percent of