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A DEA-Based Decision Support Framework for Organizations' Performance Evaluation considering TQM and Knowledge
Azin Karami1, Hadi Shirouyehzad1, Milad Asadpour2,3
1Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Najafabad, Iran.
Journal of Healthcare Engineering
|May 6, 2021
Summary
This study evaluated pharmaceutical companies using total quality management (TQM) and knowledge management (KM) success factors. Three of five companies were efficient, highlighting the importance of integrating TQM and KM for competitive advantage.
Area of Science:
- Business Management
- Organizational Performance Evaluation
- Strategic Management
Background:
- Total Quality Management (TQM) and Knowledge Management (KM) are crucial for organizational improvement and competitive advantage (CA).
- Integrating TQM and KM with organizational goals enhances overall capabilities and performance.
- Effective management strategies are essential for sustained organizational success in competitive markets.
Purpose of the Study:
- To present a decision support framework for evaluating organizational performance.
- To assess the success factors (SFs) of TQM and KM using the BCC model of data envelopment analysis (DEA).
- To identify efficient and inefficient organizations based on integrated TQM and KM performance.
Main Methods:
- Utilized the BCC model of data envelopment analysis (DEA) for performance evaluation.
- Defined KM success factors as inputs and TQM success factors as outputs in the DEA model.
- Analyzed the efficiency scores of five pharmaceutical companies in Esfahan, Iran.
Main Results:
- Three out of five pharmaceutical companies were identified as efficient.
- Two companies were identified as inefficient, indicating areas for improvement.
- Area charts visualizing TQM and KM success factors provided insights for managerial recommendations.
Conclusions:
- The study demonstrates the effectiveness of the proposed DEA framework for evaluating TQM and KM integration.
- Findings highlight the differential performance of companies in leveraging TQM and KM for competitive advantage.
- Recommendations are provided for managers to enhance organizational efficiency through strategic TQM and KM implementation.
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