An empirical study of the Taiwan National Quality Award causal model

Abstract

In this study, the Taiwan National Quality Award (TNQA) is discussed in terms of a modelling approach for the first time since it was founded in 1990. A survey instrument involving 105 questions extracted from the 2001 TNQA criteria serves to measure the content of the TNQA. A causal model is proposed to reveal the relationships among TNQA categories. Structural equation modelling (SEM) is used to analyse the model and estimate path coefficients among TNQA categories. The statistical results show that many of the hypothesized causal relationships in the TNQA model are statistically significant. From path coefficients, the category of Leadership has a strong influence on that of Information Management. Simultaneously, Information Management has impacts on other TNQA system categories. Information Management is confirmed as an internal driver of TNQA system categories. Both Leadership and Innovation and Strategic Management show direct influence on Business Results. Generally, several conclusions are made as follows. First, the assumption that the TNQA model is recursive is supported by statistical results. Secondly, the prior theory of this causal model that Leadership is a driver of the system, which creates results is confirmed. Thirdly, the final causal model also represents an excellent model of business performance, which can predict expected results through system paths. Other conclusions and findings are discussed in the study.