Impact of Quality Management Implementation on Learning Organization to Achieve Improved Non-Financial Performance in Pharmaceutical Industry of Pakistan; An Empirical Investigation

Abstract

The present study examines “the relationship between” quality management implementation and non-financial performance through mediating impact of learning organization, knowledge strategy and novelty & continuity to gain comprehensive understanding of the phenomena. After the industrial revolution, it was recognized that quality issues need to be addressed at a wider scale by preventing the problems at the first place through quality management. Quality Management Implementation (QMI) is an approach to planning, organizing and understanding each activity in which organizations engage, and according to some observers, its success as a management philosophy depends on each individual actor at each level of the system. The gap existed in the form of black box phenomena regarding the mediating relationships among the variables of the present study. In this context, a quantitative “research methodology was” used to examine the relationships between the constructs of the study. Pakistan is going through rapid advancement and growth in pharmaceutical industry. A set of hypotheses were developed based on the conceptual framework. The study used a positivist, deductive approach using time lag survey design to avoid the common method bias. The research instrument was used for pre-testing and pilot testing to measure validity and reliability. 50% response rate was achieved and sample size was 400. The central question is to study the QMI and does it lead an organization towards a learning Organization. Furthermore, to find out, how the QMI transforms the organizational product, process and managerial practices into Novelty & Continuity, by examining the underlying conception. “Analysis of moment Structure” (AMOS) version 17.0 was used to test the “measurement model” through exploratory bifactor analysis (EFA), “confirmatory factor analysisn (CFA) and to test the structural model” through “structural equation modelling (SEM), and Haye‟s method for serial mediation”. The results “”showed a” good fit” based on the cut off values, with good constructm validityb and creliability. The findings of the present study showed that successful implementation of quality management leads towards learning organization, improve novelty and continuity and enhanced knowledge strategy with improved non-financial performance as predicted. The findings of the study confirm “that there is a” significant positive “relationship between” QMI and firm‟s non-financial performance through mediation.