(Luận văn) key success factors of total quality management an empirical study in vietnamese paint and coating industry

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  t to ng hi ep NGUYEN DUC DUY ANH w n lo ad y th KEY SUCCESS FACTORS OF TOTAL QUALITY ju MANAGEMENT – AN EMPIRICAL STUDY IN yi pl VIETNAMESE PAINT AND COATING INDUSTRY n ua al n va ll fu oi m at nh z MASTER THESIS OF BUSINESS ADMINISTRATOR z k jm ht vb om l.c gm an Lu n va ey t re HO CHI MINH CITY – 2012 t to MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  ng hi ep NGUYEN DUC DUY ANH w n lo ad y th ju KEY SUCCESS FACTORS OF TOTAL QUALITY yi pl MANAGEMENT – AN EMPIRICAL STUDY IN al n ua VIETNAMESE PAINT AND COATING INDUSTRY n va ll fu m oi Subject: Master of Business Administrator Code: 60.34.01.02 at nh z z vb k jm ht MASTER THESIS OF BUSINESS ADMINISTRATOR om l.c gm an Lu n va ey t re SUPERVISOR: Dr NGUYEN THI NGUYET QUE i Acknowledgement t to ng This research would have not been completed without the incredible amount of hi ep help and support from my supervisor, teachers, colleagues, customers, family members and friends I would like to express my profound thanks to all of you w n lo Foremost, my greatest gratitude is extended to my supervisor Dr Nguyen Thi ad Nguyet Que, who has given valuable guidance, advices and comments throughout y th the whole period of this research Needless to say, without her support, this ju yi dissertation would not be either inspired or finished I also would like to give pl special words to all professors of the Economic University in HCM city has al n ua teaching and support during study Many thanks as well for the generous support ll fu the research n va of my student colleagues who helped me in any respect during the completion of m oi My deep thank is also sent to my friends who are working in the paint and at nh coating industry for helping and supporting me collect information as well as z investigate and learn the practical experiences during the process of conducting z ht vb this dissertation k jm Last but not least, I would like to take this opportunity to extend my great gm gratitude to my beloved parents, family members and close friends for their n va Ho Chi Minh, Dec 2012 an Lu Nguyen Duc Duy Anh om for my whole life l.c support and encouragement not only during the period of this research but also ey t re ii Commitment t to ng I would like to commit that the thesis, “Key success factors of total quality hi ep management – An empirical study in Vietnamese paint and coating industry”, hereby declare that this research thesis is my own original work and that all w sources have been accurately reported and acknowledged, and that this document n lo has not been previously, the data was collected in reality and it has clear origins ad y th ju Nguyen Duc Duy Anh yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iii Abstract t to This study is an empirical examines key success factors of total quality ng hi management (TQM) to the result of quality implementation in paint & coating ep industry in Vietnam TQM system helps the enterprise to identify the relationships between TQM factors and the enterprise performances w n (Sebastianelli, 2003) lo ad y th The quantitative data were obtained through a survey from 260 quality managers, ju top management managers, factory managers and purchasing managers of Paint yi pl & coating manufacturing industry in Vietnam The objectives of the research are ua al to provide the key success factors (KSF) and measure their relationship to the n quality implementation as Top management responsibility, Process design, va n Employee training, Employee involvement, Benchmarking, and customer focus ll fu Then, the key findings will be provided and recommendations to enhance the m oi level of TQM in paint and coating enterprises at nh z z k jm ht vb om l.c gm an Lu n va ey t re iv Table of Contents t to Acknowledgement i ng Commitment ii hi ep Abstract iii List of table vii w n List of figure vii lo ad Chapter 1: Introduction y th 1.1.Introduction ju 1.2.Backgrounds to the research yi pl 1.3 Research issues, objectives and questions al ua 1.3.1 Research issues n 1.3.2 Research objectives va n 1.3.3 Research questions fu ll 1.4.Research methodology and scope m oi 1.5 Thesis structure at nh 1.6 Conclusion z Chapter 2: Literature Reviews z vb 2.1 Introduction jm ht 2.2 Total quality management k 2.2.1 Definitions total quality management gm 2.2.2 Key success factors of TQM 10 l.c 2.3 Development of research model and hypothesis 14 om 2.3.1 Top management responsibility 14 an Lu 2.3.2 Process design 14 2.3.3 Employee training 15 ey 2.3.7 Result of implementing quality management 18 t re 2.3.6 Customer focus 18 n 2.3.5 Benchmarking 17 va 2.3.4 Employee involvement 16 v 2.4 Proposed research hypotheses and research model 20 t to 2.4.1 Research Hypotheses 20 ng 2.4.2 Research Model 20 hi ep 2.5 Conclusions 21 Chapter 3: Research Methodology 23 w n 3.1 Introduction 23 lo ad 3.2 Research design 23 y th 3.3 Questionnaire development 24 ju 3.3.1 Operationalization of measurement scales 24 yi pl 3.3.2 Preparation of draft questionnaire 26 ua al 3.3.3 Questionnaire design 27 n 3.4 Pilot study 28 va n 3.5 Main survey 28 fu ll 3.5.1 Population and sampling 28 m oi 3.5.2 Questionnaires administration 30 at nh 3.5 Data analysis techniques 30 3.5.1 Data cleaning 30 z z 3.5.2 The reliability of the survey’s results 31 vb jm ht 3.5.3 Exploratory factor analysis (EFA) 31 3.5.4 Correlation analysis 33 k l.c gm 3.5.5 Multiple linear regression (MLR) analyses 33 3.6 Conclusion 34 om Chapter 4: Data analysis and result 35 an Lu 4.1 Introduction 35 4.2 Data cleaning, Data filer and Sample description 35 ey 4.4 Exploratory factor analysis (EFA) 41 t re 4.3 Reliability test of measurement 38 n 4.2.2 Sample description 36 va 4.1.1 Data cleaning and data filter 35 vi 4.5 Testing the research model and the hypothesis 45 t to 4.5.1 Testing the correlations of the constructs 45 ng 4.5.2 Testing assumptions of Linear Regression 46 hi ep 4.6 Multiple Linear Regression Analysis 47 4.7 Conclusion 51 w n Chapter 5: Conclusions and implications 52 lo ad 5.1 Introduction 52 y th 5.2 Discussion of findings 52 ju 5.3 Implications 54 yi pl 5.3.1 Theoretical implications 54 ua al 5.3.2 Practical implications 55 n 5.4 Limitation of the research 56 va n 5.5 Conclusion 57 fu ll Bibliography 58 oi m Appendix 1: Survey of Questionnaires – English version 61 at nh Appendix 2: Bảng khảo sát – Phiên tiếng Việt 64 Appendix 3: Descriptive statistics of variables 67 z z Appendix 4: Measurement scales reliability of variables 67 vb jm ht Appendix 5: Exploratory Factor Analysis (EFA) 71 Appendix 6: Correlations 74 k l.c gm Appendix 7: Graphic analysis of regression assumptions 75 Appendix 8: Regression 77 om Appendix 9: Responders interview list 78 an Lu n va ey t re vii List of table t to ng Table 1: Key success factors of TQM 10 hi ep Table 2: Key success factors of TQM in some previous studies 12 Table 3: Research hypotheses 20 w n Table 4: Measurement scale of variables 25 lo ad Table 5: Descriptive statistics on all factors 36 y th Table 6: The responder’s information 38 ju Table 7: Cronchbach's alpha values 39 yi pl Table 8: KMO and Barlett's Test 41 al ua Table 9: Total variance explained 43 n Table 10: Rotated Component Matrix 44 va n Table 11: Pearson Correlations 46 fu ll Table 12: Regression when RIQ (Y) is dependent variable 48 m oi Table 13: Results of testing hypothesis 50 at nh z z k jm ht vb List of figure gm Figure 1: The market share in Vietnamese paint and coating industry l.c Figure 2: Research Model 21 om Figure 3: Research process 23 an Lu Figure 4: The updated research model 51 Figure 5: The process of benchmarking 55 n va ey t re Chapter 1: Introduction t to ng 1.1 Introduction hi ep This chapter explains the reason of choosing the title, and briefly explains the w problem and objectives of the research The scope and data collection methods of n lo the research are also presented in this part It is necessary to overview about the ad Vietnamese paint and coating industry in order to illustrate to the readers about the y th weaknesses in the quality management of local companies in comparison with ju yi foreign companies that have the competitive advantages in higher service quality pl and technology The author also addresses the fact that there were not so many al n ua previous researches were written about the total quality management (TQM) and va finding key factor success to result of implementing quality management in paint n and coating industry in term of Vietnamese market characteristics ll fu Backgrounds to the research oi m 1.2 nh at Scott Detiveaux and Allen Tsaur (2011) reported that the global paint and coating z z industry has been affected by the global economic downturn since 2008 They vb ht provided the growth rate before and after the global economic downturn which are k jm 30% and 3% respectively, showing the negative impacts of the global economy to gm the paint and coating industry However, Scott Detiveaux and Allen Tsaur (2011) l.c also said that Asia Pacific was only one bright spot in the gray picture of global om paint and coating industry From 2004 to 2009, the growth rate of this industry in an Lu Asia Pacific was amazing, 60%, outperforming the global economic downturn Detiveaux and Allen Tsaur, 2011) ey of this area took 41% of the 27 billion liter of the global coating volume (Scott t re areas in the world market During the economic downturn, the production volume n at high speed and reduced to 30% but still higher than the growth rates of any other va From 2010 to 2011, the growth rate of paint and coating industry has not remained