Mediator Effect of TPM between TQM and Business Performance in Malaysia Automotive Industry

Total Quality Management (TQM) is vital management tool in ensuring a company can success in the continuously growing competition in the global market. In order to survive in the global market with intense competition amongst regions and enterprises, the adoption of tools and techniques are essential in improving business performance. However, only few previous studies have examined the mediators and moderators between TQM and business performance. This present research proposed a TQM performance model with mediator effect of TPM with structural equation modelling, which is a more comprehensive model for developing countries, specifically for Malaysia. A questionnaire was prepared and sent to 1500 companies from automotive industry and the related vendors in Malaysia, giving a 21.3 per cent rate. The result concludes that TPM is partial mediation between and TQM and Business Performance with indirect effect (IE) is 0.25 which can be categorised as high mediator effect.


Introduction
The concept of total quality management (TQM) has been developed as a result of intense global competition [1] [2]. Firms that manage the international trade in global competition have put emphasis on TQM philosophy, procedures, tools and techniques [3][4] [5]. Juran [6] defines TQM as philosophy aimed at achieving business excellence through the application of tools and technique, as well as the management of soft aspects, such as human motivation in work. Furthermore, Demirbag et.al [7] defines TQM as a management philosophy aims to contribute continuous improvement in the organization with the participation of all employees to achieve customer satisfaction by producing better, cheaper, faster and safer than competitors. However, the study of mediators is neglected and is referred to less frequently in literature review [8] [9]. The fundamental systems-interactive paradigm of organisational analysis features the continual stages of input, throughput (processing), and output, which demonstrate the concept of openness and closeness. Processing is the process of changing from one "look" to another, or one culture to another [10]. In this study, the author defines input as TQM; processing as application tools and techniques namely TPM; and output as business performance as shown in Figure 1. Thus, one of the objectives of this study is to empirically analyse the impact of TPM between TQM and business performance.

Literature Review
The purpose of TPM is to minimise breakdown and to maximise equipment availability of production systems at minimal cost [12]. TPM can be defined as an improvement programme that establishes a comprehensive productive-maintenance system throughout the entire life of the equipment with the participation of all employees through voluntary team-based activities [15]. However, only few previous studies have examined the mediators and moderators between TQM and business performance [16]. The inconsistent results between TQM and BP are because the mediators and moderators have been overlooked in research designs [17]. This present research proposed a TQM performance model with mediator effect of TPM with structural equation modelling, which is a more comprehensive model for developing countries, specifically for Malaysia.

H1: Relationship between TQM and Business Performance
Most previous studies indicate a significant relationship between TQM practices and business performance [18]; [19]. In contrast, other studies show that TQM does not improve business performance [20]; [7]. Other findings show partial correlation between TQM practices and business performance [7]. Accordingly, the author proposes that:

H1: TQM practices are positively significant and have direct effects on business performance.
TPM is significantly supported by TQM for improving business performance [21]. Teeravaraprug et al., [22] suggest that TQM and TPM should be implemented before lean production. Two sets of factors are critical for the effectiveness of TQM and TPM: (1) universally significant factors for all three approaches such as leadership, process management, and strategic planning; and (2) approachspecific factors such as equipment management and focus on customer satisfaction [23]. Thus, TQM practices are positively correlated with TPM.

H2a: TQM practices are positively significance and direct effect on TPM.
Ahuja and Khamba [24] note the critical success factors of TPM, such as top management leadership and involvement, maintenance practices, as well as holistic TPM initiatives, enhance business performance in Indian industry. Konecny and Thun [21] indicate that TQM and TPM supported by human resource practices significantly improve business performance. Ahmad et al., [1] and Nakajima [12] indicate that TPM practices have impact on business performance. Therefore, TPM practices are positively correlated with business performance. Accordingly, the author proposes that:

H2b: TPM practices are positively significance and direct effect on business performance.
There are lack of empirical evidences of TPM as mediator between TQM and business performance in previous work [16]. TQM provides soft and hard aspects such knowledge, skill, continuous improvement and work environment and culture to support adoption of TPM implementation [24], [25]. Meanwhile, TPM has positively impacts on business performance [6], [27]. Thus, TQM will be helpful for effective and efficient in TPM adoption, in turn increasing business performance. H2: TPM is a mediator between TQM and business performance.

Methodology
A total of 1500 questionnaires were mailed to these companies. A total 327 questionnaires were returned which represented about 21.8% response rate. The number of returned questionnaires that were found to be usable in this study was 319, which represented about 21.3% response rate.

Result
SEM TPM as the mediator variable was included into the model, as shown in Figure 1. Table 1 shows that the relationship between TQM and BP was reduced when TPM was included in the model, but the relationship was still significant with rc from 0.  [27].

Discussion
It was expected that TPM was a mediator between TQM and business performance. This finding is supported by Seth & Tripathi [23] and Konecny & Thun [21]. Konecny & Thun [21] prove that TPM is a mediator between TQM and business performance in order to improve quality, flexibility, cost, and time in the context of manufacturing industry in Germany. The results of this present study were also in agreement with Nakajima [12] who states that the objectives of TPM are zero breakdown and zero defects to improve productivity and quality, to reduce inventory and delivery cycle time, and to improve safety and employee morale.

Conclusion
The result concludes that TPM is partial correlation between and TQM and BP with indirect effect (IE) is 0.25 which can be categorised as high moderator effect based on SEM result as shown Table 1. It has proved that the impact of TPM as mediator based on system theory and the importance of TPM in TQM implementation.