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MODERATING ROLE OF ORGANIZATIONAL CULTURE ON THE RELATIONSHIP BETWEEN
QUALITY MANAGEMENT PRACTICES, ORGANIZATIONAL LEARNING, AND
ORGANIZATIONAL PERFORMANCE IN IRAQI HIGHER EDUCATION INSTITUTES
TITLE PAGE
AHMED HANI MOHAMMED
DOCTOR OF PHILOSOPHY UNIVERSITI UTARA MALAYSIA
October 2017
ii
MODERATING ROLE OF ORGANIZATIONAL CULTURE ON THE RELATIONSHIP BETWEEN QUALITY MANAGEMENT PRACTICES,
ORGANIZATIONAL LEARNING, AND ORGANIZATIONAL PERFORMANCE IN IRAQI HIGHER EDUCATION INSTITUTES
By
AHMED HANI MOHAMMED
Thesis Submitted to
School of Technology Management and Logistics, Universiti Utara Malaysia
in Fulfilment of the Requirement for the Degree of Doctor of Philosophy
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PERMISSION TO USE
In presenting this thesis in fulfillment of the requirements for a Post Graduate degree from the Universiti Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree that permission for copying this thesis in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Dean of School of Technology Management and Logistics College of Business where I did my thesis. It is understood that any copying or publication or use of this thesis or parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my thesis.
Request for permission to copy or to make other use of materials in this thesis in whole or in part should be addressed to:
Dean of School of Technology Management and Logistics College of Business
Universiti Utara Malaysia 06010 UUM Sintok Kedah Darul Aman
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ABSTRACT
The main objective of this study is investigate the moderating role of organizational culture on the relationship between quality management practices, organizational learning, and organizational performance in Iraqi higher education institutes. A simple random sampling method was used for sample selection. A total of 468 questionnaires were distributed through email to the Head of Department from Iraqi public universities, and 203 were deemed usable, giving a response rate of 43%. The data were analyzed using Partial Least Square Structural Equation Modeling technique after completely passed four data preparation and screening steps, i.e. the testing for normality, testing of multicollinearity, testing of linearity, and test of non-response bias. The results indicate core quality management practices, infrastructure quality management practices and organizational learning have significant relationship on organizational performance.
Besides, organizational culture positively moderates the relationship between core quality management practices, organizational learning and organizational performance.
Oppositely, organizational culture does not moderate the relationship between infrastructure quality management practices and organizational performance. Besides, the extend model explained 79.9 percent of organizational performance, which mean the developed model posits the importance of organizational culture as a moderator in the Iraqi public higher education industry. The novelty of this study is a significant contribution to organizational performance by highlighted three independent variables (core quality management practices, infrastructure quality management practices, and organizational learning) that contribute to raising performance level in Iraqi higher education institutes, without neglecting the organizational culture as a moderating variable. Finally, limitations of the current study and direction for future research are discussed.
Keywords: Iraqi higher education, organizational culture, organizational learning, quality management practices, organizational performance.
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ABSTRAK
Objektif utama kajian adalah untuk mengkaji peranan budaya organisasi sebagai pembolehubah penyederhana dalam hubungan di antara amalan pengurusan kualiti, pembelajaran organisasi, dan prestasi organisasi di Institusi Pengajian Tinggi Iraq.
Kaedah pensampelan rawak mudah telah digunakan bagi tujuan pemilihan sampel.
Sebanyak 468 soal selidik telah diedarkan melalui e-mel kepada Ketua Jabatan dari universiti awam yang terpilih di Iraq, dan 203 soal selidik dapat digunakan bagi tujuan penganalisaan iaitu sebanyak sebanyak 43%. Data dianalisis dengan menggunakan teknik Pemodelan Persamaan Struktur Separa Least Square setelah data-data memenuhi empat kriteria utama penapisan data iaitu ujian normal, ujian multikolineriti, ujian lineariti, dan ujian kecenderungan kesipalan maklumbalas. Hasil kajian menunjukkan amalan teras pengurusan kualiti, amalan infrastruktur pengurusan kualiti dan pembelajaran organisasi mempunyai hubungan yang signifikan dengan prestasi organisasi. Dapatan kajian juga mendapati budaya organisasi secara positif telah menjadi pemboleh ubah peyederhana kepada hubungan di antara amalan teras pengurusan kualiti, pembelajaran organisasi dan prestasi organisasi. Sebaliknya dapatan kajian menunukkan budaya organisasi bukan merupakan pembolehubah penyederhana kepada hubungan di antara amalan infrastruktur pengurusan kualiti dan prestasi organisasi. Seterusnya, model kajian menjelaskan 79.9 peratus prestasi organisasi, iaitu kajian mendapati model yang dibangunkan telah menunjukkan kepentingan budaya organisasi sebagai pembolehubah penyederhana dalam industri Pendidikan Tinggi Awam Iraq. Keunikan kajian ini adalah sumbangannya kepada kepentingan pembolehubah penyerderhana budaya organisasi kepada prestasi organisasi yang melibatkan tiga pembolehubah bebas iaitu, amalan teras pengurusan kualiti, amalan infrastruktur pengurusan kualiti, dan pembelajaran organisasi kepada peningkatan tahap prestasi kepada Institusi Pengajian Tinggi Iraq. Akhirnya, kajian ini juga membincangkan beberapa batasan kajian, serta turut menyarankan beberapa cadangan penambahbaikan bagi memantapkan penyelidikan yang sama di masa hadapan.
Kata Kunci: pengajian tinggi Iraq, budaya organisasi, pembelajaran organisasi, amalan pengurusan kualiti, pencapaian organisasi.
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ACKNOWLEDGEMENT
The most excellent words of praises are due to Allah (Glorified and Exalted Be He) for helping me and keeping me alive during PhD program. May His peace and blessing be upon the prophet MUHAMMAD (Peace Be Upon Him), and for his household and companions. First and foremost, I wish to express my deepest appreciation to my Supervisors, Associate Professor Dr. Che Azlan bin Taib and Senior lecturer Dr.
Santhirasegaran a/l S. R. Nadarajan for their inspiration, guidance, support, and generosity. They are inspired and motivated me greatly all through my PhD journey, which resulted into huge success. I particularly benefited tremendously from the opportunities and sponsorships they offered to me in terms research, and workshops. In addition, I would like to express my gratitude and thanks to Assoc. Prof Dr. Mohd. Rizal bin Razalli and Dr. Mohamad Shukri bin Abdul Hamid for their constructive comments and invaluable suggestions during the proposal defense session.
I highly appreciate the UUM administration and non-teaching staff for promptly providing me all kinds of support as and when I needed. And thanks also to my friends.
This humble piece of writing that rest in your hands, is a result derived from an opportunity that given to me by the Republic of Iraq. I would like to extend my gratitude to Ministry of Higher Education and Scientific Research/ University of Mosul for its sponsorship, granting me a scholarship to pursue my doctorate studies in Universiti Utara Malaysia.
Finally, to my family, especially my wife and children who stood by me throughout my stay in Malaysia. My father and mother deserve a special mention for their prayers and endless love. I thank them all.
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TABLE OF CONTENTS
TITLE PAGE ... i
CERTIFICATION OF THESIS WORK ... Error! Bookmark not defined. PERMISSION TO USE ... v
ABSTRACT ... vi
ABSTRAK ... vii
ACKNOWLEDGEMENT ... viii
TABLE OF CONTENTS ... ix
List of Tables ... xiii
List of Figures ... xiv
List of Abbreviations ... xv
CHAPTER ONE INTRODUCTION ... 1
1.1 Background of the Study ... 1
1.2 Problem Statement ... 5
1.3 Research Questions ... 9
1.4 Research Objectives ... 10
1.5 Significance of the Study ... 11
1.5.1 Theoretical Significance ... 11
1.5.2 Managerial Significance ... 12
1.6 Scope and Limitations of the Study ... 13
1.7 Organization of the Thesis ... 14
CHAPTER TWO LITERATURE REVIEW ... 16
2.1 Introduction ... 16
2.2 Quality Management Practices ... 16
2.2.1 Quality... 16
2.2.2 Evaluation of Quality ... 18
2.2.3 Overview of Quality Management Practices ... 19
2.2.4 Quality Management Practices in Higher Education ... 24
2.2.5 Malcolm Baldrige National Quality Award ... 26
2.2.6 The Infrastructure and Core QMPs. ... 34
2.3 Organizational Learning ... 39
2.4 Organizational Culture ... 43
2.4.1 Organizational Culture and its Importance ... 45
2.4.2 Organizational culture: Relationships and Methods of Measurement ... 46
2.5. Organizational Performance ... 48
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2.5.1 Organizational Performance Measure... 52
2.5.2 Key Performance Indicators (KPIs) ... 55
2.5.3 Financial and Non-Financial Performance ... 56
2.5.4 Balance Scorecard (BSC) ... 58
2.5 Iraqi Higher Education Institutes ... 68
2.6 Summary ... 71
CHAPTER THREE RESEARCH FRAMEWORK ... 72
3.1 Introduction ... 72
3.2 Theoretical Framework ... 72
3.3 Hypotheses Development ... 73
3.3.1 The Relationship between Quality Management Practices and Organizational Performance. ... 74
3.3.2 Relationship between Organizational Learning and Organizational Performance. ... 77
3.3.3 Moderating Effect of Organizational Culture between Quality Management Practices and Organizational Performance. ... 78
3.3.4 Moderating Effect of Organizational Culture between Organizational Learning and Organizational Performance. ... 80
3.3.5 Moderating Effect of Organizational Culture among Quality Management Practices, Organizational Learning and Organizational Performance. ... 81
3.4 Underpinning Theories ... 82
3.4.1 Resource-Based View (RBV) ... 83
3.4.2 Contingency Theory... 84
3.4.3 Organizational Change Management Theory ... 86
3.4 Summary ... 88
CHAPTER FOUR RESEARCH METHODOLOGY ... 89
4.1 Introduction ... 89
4.2 Research Design... 89
4.3 Operational Definitions ... 91
4.3.1 Organizational Performance ... 91
4.3.2 Quality Management Practices (QMPs) ... 92
4.3.3 Organizational Learning ... 92
4.3.4 Organizational Culture ... 92
4.4 Population and Sampling Frame ... 93
4.5 Measurement of Variables/Instrumentation ... 96
4.5.1 Organizational Performance Measurement... 97
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4.5.2 Infrastructure Quality Management Practices Measurement ... 99
4.5.3 Core Quality Management Practices Measurement ... 101
4.5.4 Organizational Learning Measurement ... 102
4.5.5 Organizational Culture Measurement ... 104
4.6 Pilot Study ... 105
4.7 Data Collection Procedures... 107
4.8 Techniques of Data Analysis ... 108
4.8.1 Descriptive Analysis ... 108
4.8.2 Reliability Analysis ... 108
4.8.3 Structural Equation Modeling ... 109
4.9 Summary ... 112
CHAPTER FIVE DATA ANALYSIS AND FINDING ... 113
5.1 Introduction ... 113
5.2 Response Rate ... 113
5.3 Data Preparation and Screening ... 115
5.3.1 Testing for Normality ... 115
5.3.2 Testing of Multicollinearity ... 118
5.3.3 Testing of Linearity... 119
5.3.4 Test of Non-response Bias ... 120
5.4 Demographic Distribution of Participants ... 124
5.5 Descriptive Statistics Analysis ... 126
5.6 Data Analysis ... 127
5.7 Measurement Model ... 128
5.7.4 Reliability Analysis ... 138
5.7.5 Goodness of Fit ... 139
5.8 Assessment of PLS-SEM Structural Model ... 140
5.8.1 Coefficient of Determination (R2) ... 140
5.8.2 Effect Size (f2) ... 141
5.8.3 Predictive Relevance (Q2) ... 144
5.9 The First order and Second order constructs ... 144
5.10 Hypotheses Testing ... 147
5.11 Moderation Effect Analysis ... 150
5.12 Summary ... 156
CHAPTER SIX DISCUSSIONS AND CONCLUSION ... 158
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6.1 Introduction ... 158
6.2 Recapitulation of Study... 158
6.3 Discussion of Findings ... 161
6.3.1 The Relationship between Core Quality Management Practices and Organizational Performance ... 161
6.3.2 The Relationship between Infrastructure Quality Management Practices and Organizational Performance ... 163
6.3.3 The Relationship between Organizational Learning and Organizational Performance ... 165
6.3.4 Effect of Organizational Culture as a Moderator to Relationship between Core Quality Management Practices and Organizational Performance ... 167
6.3.5 Effect of Organizational Culture as a Moderator to the Relationship between Infrastructure Quality Management Practices and Organizational Performance 169 6.3.6 Effect of Organizational Culture as a Moderator in the Relationship between Organizational Learning and Organizational Performance ... 171
6.3.7 Effect of Organizational Culture as a moderator in the Relationship between Infrastructure QMPs, Core QMPs, and Organizational Learning and Organizational Performance ... 173
6.4 Implications of Study ... 174
6.4.1 Theoretical Implications ... 174
6.4.2 Methodological Implications ... 176
6.4.3 Practical Implications... 178
6.5 Limitations of Study ... 180
6.6 Directions for Further Research ... 182
6.7 Conclusion ... 184
REFERENCES ... 186
Appendix A The Final Questionnaire ... 214
Appendix B The Arabic Questionnaire ... 221
xiii List of Tables
Table Page
2.1 Overview of Quality Management Practices 21
2.2 Quality management practices in HEIs 25
2.3 Summary of studies that focused on core and infrastructure QMPs
36 2.4 Sample of Previous Performance Measurement Indicators in HE 54 2.5 Goals and indicators of the Balanced Scorecard in Higher
Education
66 3.1 Research Questions, Research Objectives, and Research
Hypotheses
81
4.1 Population Frame 94
4.2 Distribution of sample 95
4.3 Organizational performance scale 98
4.4 Infrastructure QMPs scales 100
4.5 Core QMPs scale 102
4.6 Organizational learning scale 103
4.7 Organizational culture scale 105
4.8 Reliability Analysis Results 107
4.9 Goodness-of-Fit Testing 112
5.1 Response Rate 114
5.2 Result of Skewness and kurtosis for normality test 117 5.3 Multicollinearity Test based on Tolerance and VIF values 119 5.4 Group statistics of independent sample T-test 121 5.5 Independent sample T test result for non-response bias 122
5.6 Participant’s Demographic Information 125
5.7 Descriptive statistics of the constructs (n = 203) 127 5.8 Cross Loadings (Before Deletion) (Original Model) 132
5.9 Convergent Validity Analysis 135
5.10 Discriminant Validity Analysis 137
5.11 Cronbach’s Alpha and Composite Reliabilities of Constructs 138
5.12 Goodness of fit of the model 140
5.13 Effect Sizes of Latent Variables 142
5.14 Effect Sizes of Moderator Variables 143
5.15 Predictive relevance (Q2) 144
5.16 Second-Order Constructs Establishment 147
5.17 The Results of the Inner Structural Model 150
5.18 Results of Moderating Variable 152
5.19 Summary of the findings 156
xiv List of Figures
Figure Page
2.1 Funding of education in the annual budget for the period between 2010 to 2016
71
3.1 Theoretical Framework 73
5.1 Sample size and Frequency 115
5.2 Histogram and normal probability for customer perspective 117
5.3 Linearity test 120
5.4 Percentage of response rate for each university 124
5.5 Original Study Model 129
5.6 Model of study after item deletion 131
5.7 First order measurement model of Leadership 145 5.8 Second order measurement model of Infrastructure QMPs 146 5.9 Path Model Significance Results (t-values): Direct
Hypotheses
149 5.10 Path Model Results (T-values): with Moderator 151 5.11 Visual Presentation of Moderating Effect 1 153 5.12 Visual Presentation of Moderating Effect 2 154 5.13 Visual Presentation of Moderating Effect 3 155
xv List of Abbreviations
ARWU Academic Ranking of World University ASQ American Society of Quality
BSC Balanced Scorecard
FPMs Financial Performance Measurements
HE Higher Education
HEIs Higher Education Institutes ICR Iraqi Council of Representatives
IHEOC Iraq Higher Education Organizing Committee MBNQA Malcolm Baldrige National Quality Award
MOHESR Ministry of Higher Education and Scientific Research NFPMs Not-Financial Performance Measurements
OC Organizational Culture OL Organizational Learning OP Organizational Performance PLS Partial Least Squares
QMPs Quality Management Practices
QS Quacquarelli Symonds World University Rankings RBV Resource Based-View
SEM Structural Equation Modeling SPC Statistical Process Control
SPSS Statistical Package of Social science SRF Scholar Rescue Fund
THE Times Higher Education TQM Total Quality Management
UNESCO United Nations Education, Scientific and Culture Organization
1
CHAPTER ONE INTRODUCTION INTRODUCTION
1.1 Background of the Study
The concept of performance in higher education globally is one of the most important and challenging issues debated during the last decade. At the same time, contributing factors leading to the rapid interest in the concept and application of performance within higher education is acknowledged as being a massive expansion for higher education in institutions and customers alike. This applies to all developed countries globally and in many developing countries as well. In the same vein, high performance in higher education has many meanings; excellence, perfection, consistency and the resultant end goal. However, the purpose of performance in higher education is to describe and measure the current situation in higher education institutions.
The current situation of higher education can be explained by development of economic and international societies that led to the expansion and growth of new variables and areas in these institutions. There has seen an increase in the communication among institutions and in the adoption of new rules that govern work practices. The challenge of social and current reform and economic development should potentially lead towards greater and continued research in higher education coupled with improved effectiveness of international finance (Abankina, Abankina, Filatova, Nikolayenko, & Seroshtan, 2012).
To improve the effectiveness of performance, a number of studies were conducted to determine the impact of several variables that related to performance, such as Quality Management Practices (“QMPs”) and Organizational Learning (“OL”). Where the quality method for integration and OL are seen as being two critical success factors
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