TQM Practices and their Effect on Non-financial Performance: An Empirical Study of Pakistani Hospitals

Introduction: There has been a vigorous change in the healthcare sector with increased patient expectations, technological advancements, and growing competition in the healthcare market. Therefore hospitals have to shift from traditional management approach to more diverse aspects like TQM practices and effective quality management system to augment the performance level. Relationship between TQM practices and performance is multipronged and widely discussed in the literature. Aim: Main purpose of this study was to evaluate the impact of TQM practices on nonfinancial performance elements of performance in different quality management system settings. Methods: This study used an empirical approach to identify and explain the TQM practices and non-financial performance relationship. A cross-sectional survey was conducted in 5 hospitals from different regions with either Joint Commissioned International (JCI) or ISO 9001 based quality management system. Data were collected from 150 hospital managers between October 2018 and February 2019. Descriptive and inferential statistical analysis was conducted using IBM SPSS 20 version. Results: Finding of the study support that TQM practices have a statistically significant and positive relationship with non-financial performance (p<0.05). Result of multiple linear regression analysis shows that TQM practices are a strong predictor of non-financial performance (Beta=0.793, t=15.837, R2=0.629, and p=0.000) and explain 63% variation in the model. TQM practices demonstrate higher overall and individual mean values for JCI accredited hospitals. T-test shows that there is a significant difference (p<0.05) in TQM practices between JCI and ISO-based quality management system. Conclusion: It can be inferred from this study that TQM practices have a leading role in the improvement of the non-financial performance of hospitals. Hospital managers at a different level can achieve improved results with effective implementation of identified TQM practices. TQM practices significantly contribute towards individual dimensions as well as an overall improvement in non-financial performance.