<p>The Social Responsibility Performance (SRP) of banks has gained substantial visibility in recent years, largely due to global emphasis on their transparency, philanthropic activities, and a positive societal influence. Though Total Quality Management (TQM) practices have been adopted by banks to improve service and process quality, the impact of this adoption on satisfying social responsibility has been rarely studied. This research, therefore, applied the Burke and Litwin model of Organisational Performance and Change to frame the TQM practices into transactional (process management, employee involvement, training and development) and transformational (top management commitment, continuous improvement and innovation, customer focus) drivers that ultimately concede SRP. To empirically test this interplay, cross-sectional data, collected from 463 individuals employed in Bangladeshi commercial banks, were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and Necessary Condition Analysis (NCA). The analysis revealed that all transformational drivers exert positive and statistically sufficient effects on SRP. Within the transactional set, only “training and development” is both sufficient and impactful. NCA further revealed that all six drivers operate as constraints, with customer focus imposing the tightest ceiling. It suggests that transformational drivers exert a greater capacity to compose SRP for banks, which challenges existing process-oriented views of fulfilling social responsibilities. Academically, this research integrates the isolated TQM framework within organizational performance and change settings, conceptualized in the Burke and Litwin model. For managers and practitioners, this research offers insights to align efficiency with societal value. However, limitations of this study include a cross-sectional design and a single-country focus.</p>

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How total quality management influences social responsibility in banks

  • Abul Bashar,
  • Md. Nazmus Sakib,
  • Md. Mahbubur Rahman

摘要

The Social Responsibility Performance (SRP) of banks has gained substantial visibility in recent years, largely due to global emphasis on their transparency, philanthropic activities, and a positive societal influence. Though Total Quality Management (TQM) practices have been adopted by banks to improve service and process quality, the impact of this adoption on satisfying social responsibility has been rarely studied. This research, therefore, applied the Burke and Litwin model of Organisational Performance and Change to frame the TQM practices into transactional (process management, employee involvement, training and development) and transformational (top management commitment, continuous improvement and innovation, customer focus) drivers that ultimately concede SRP. To empirically test this interplay, cross-sectional data, collected from 463 individuals employed in Bangladeshi commercial banks, were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and Necessary Condition Analysis (NCA). The analysis revealed that all transformational drivers exert positive and statistically sufficient effects on SRP. Within the transactional set, only “training and development” is both sufficient and impactful. NCA further revealed that all six drivers operate as constraints, with customer focus imposing the tightest ceiling. It suggests that transformational drivers exert a greater capacity to compose SRP for banks, which challenges existing process-oriented views of fulfilling social responsibilities. Academically, this research integrates the isolated TQM framework within organizational performance and change settings, conceptualized in the Burke and Litwin model. For managers and practitioners, this research offers insights to align efficiency with societal value. However, limitations of this study include a cross-sectional design and a single-country focus.