The Structural Relationship Between Total Quality Management and Organisational Performance: A Study of Deposit Money Banks In Nigeria

The study examines the causal relationship between total quality management (TQM) and organizational performance of deposit money banks in Nigeria. A cross-sectional survey design was employed, with primary data collected through structured questionnaires. Ten deposit money banks in Lagos State were purposively selected, representing the ten largest banks in Nigeria by total assets as of H1 2023. A judgmental sampling technique was used to select respondents, specifically managers from the chosen banks. From each bank, 20 managers from various departments were selected, resulting in a sample size of 200 respondents. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was utilized to analyze the collected data. The results reveal that, although TQM practices such as leadership (LD), people management (PEM), strategic planning (SP), process management (SP), and information and analysis (IA), are positively related to employee performance (EMP), only PEM, PM, and IA, are significantly related to EMP. Also, LD, PM and IA are significantly and positively related to the banks’ innovation performance. These indicate that TQM practices have significant effect on employee performance and innovation success in deposit money banks in Nigeria.