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A comparative analysis of cultural, conceptual and practical constraints on quality management implementations--findings from Australian and Korean banking industries

This paper proposes a model derived from literature reviews linking perceived service quality, customer satisfaction, customer loyalty and employee satisfaction whilst implementing Total Quality Management (TQM) amongst Australian and Korean banking industries. The study tested the model developed by using several measures and found significant relationships and path links between perceived service quality, customer satisfaction and customer loyalty as well as between TQM practices and employee satisfaction. These findings suggest that organizations, which are interested in long-term business success, should focus on the satisfaction of customers. A total of 11 banks, five in Seoul, Korea and six in Sydney, Australia, were chosen, which responded positively to questionnaires distributed to both bank customers and employees. Several cultural, conceptual and practical dimensions, along with hypotheses testing were carried out for comparative analysis of TQM implementations in both Korean and Australian banking industries.