Organizational culture role in linking TQM practices to performance in the Yemen oil and gas sector

Abstract

Against the backdrop of Yemen’s economic challenges, particularly its heavy reliance on depleting oil reserves, this study delves into the urgent need to improve the performance of the oil and gas industry by investigating the relationship between total quality management (TQM) and organizational performance (OP) and concurrently examining the moderating role of organizational culture (OC). Quantitative data were collected by administering a survey questionnaire to 234 employees working at PetroMasila in Yemen. Based on Structural equation modeling, the results revealed significant influences of TQM and OC on OP, with OC serving as a key moderating factor. It indicates that the independent variables of organizational culture and total quality management explain 94.1% of variance in organizational performance. This has a significant impact on the moderating role of organizational culture, accounting for 35.6% of the direct relationship in this study. The findings expand the Resource-Based View theory and provide practical insights for energy companies, highlighting the need for TQM to promote organizational citizenship performance. This research informs Yemen’s policymakers by offering insights into the factors affecting the sector performance. Furthermore, the study underscores the immediate relevance of administrators in prioritizing the implementation of total quality management and fostering a conducive organizational culture.

Keywords

• Organizational culture
• total quality management
• organizational performance
• oil and gas industry: Yemen
• Psychological Science
• Business, Management and Accounting