The relationship between total quality management, employee satisfaction, customer satisfaction and business performance: a research in Libya hotels

During the last two decades, service sectors have made significant contributions to the growth of Gross Domestic Product (GDP). in both established and emerging economies. However, developing countries are trying to benefit from applying TQM to improve productivity and service quality for governmental and private organizations. It has been demonstrated that establishing a Total Quality Management (TQM). system improves service quality and process through its practices. TQM stands out as a management approach that cares about employee satisfaction as well as customer satisfaction. Studies conducted in different countries and business lines reveal that TQM practices contribute to satisfaction and that business performance is positively affected. Many studies have been conducted to identify the link between TQM and customer satisfaction, most not done in service business settings. The aim of this study is to determine the relationship between total quality management, employee satisfaction, unlimited improvement, business performance and customer satisfaction. Major hotels located in western cities of Libya were selected. Employee satisfaction, customer satisfaction and business performance scales developed by Küçük (2020). were used to measure the examined variables. Factor analysis was conducted to investigate the validity of employee satisfaction, customer satisfaction, business performance, TQM, unlimited improvement scales, and Alpha Cronbach was conducted for reliability analysis. Three hundred ninety-nine hotel employees (399). and three hundred ninety-seven (397). hotel customers participated in the research as a sample. The results revealed that there was a significant positive correlation between the variables. It is expected that this study will contribute to Libyan tourism in particular for hotel businesses. KEYWORDS: Total Quality Management, Employee Satisfaction, Customer Satisfaction, Business Performance.