Journal of Applied Finance & Banking

Effects of TQM Practices on Banking Sector Performance: The Case of Jordan

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  • Abstract

    This study investigated the impacts of TQM practices on banking sector performance in Jordan using DEA methodology and regression analysis between the years 2011-2013. The study sample was selected from 12 Jordanian banks recorded in Amman Stock Market. 300 questionnaires were distributed to participating banks. The response rate was 73.3%. The population of the study consisted of general managers, quality managers, branch managers, HR managers, and members of top management.Data was analyzed using SPSS. Multiple regressions analysis was used to test study hypotheses. Data Envelopment Analysis (DEA) was used to estimate the efficiency scores for the Jordanian banks. The results revealed that top management, technical systems, employee satisfaction, and customer focus of TQM practices have significant impact on banks performance and efficiency. Results provided supporting evidence that a strong relationship exists between TQM practices and organizational performance.