Total quality management practices and financial performance in Vietnamese hotels
the moderating roles of market turbulence, competitive intensity, and technological turbulence
DOI:
https://doi.org/10.14488/BJOPM.3083.2026Keywords:
Total quality management, TQM, External environmental factors, Hotels’ financial performance, Market turbulence, Competitive intensity, Technological turbulenceAbstract
Purpose: This study examines the relationship between TQM practices and hotels’ financial performance in Vietnam, with particular attention to the moderating roles of market turbulence, competitive intensity, and technological turbulence.
Design / methodology / approach: Data were collected from managers at different levels in 185 hotels rated three stars or above across various regions of Vietnam. Structural equation modeling was employed, using AMOS, to test the proposed research model and hypotheses.
Findings: The results show that TQM practices positively affect hotels’ financial performance.
Market turbulence and competitive intensity significantly strengthen this relationship, whereas technological turbulence does not show a significant moderating effect.
Limitations of the study: This study uses cross-sectional, self-reported data and focuses on perceived financial performance. Future studies could use longitudinal and objective financial data, include non-financial outcomes such as customer and employee satisfaction, and further examine how digital capability shapes
the role of technological turbulence.
Practical implications: The findings suggest that hotel managers should continuously monitor changes in the external business environment, especially market turbulence and competitive intensity. By doing so, they can adjust their internal quality management practices more effectively to improve financial outcomes.
Originality / value: This study contributes to the literature by providing empirical evidence on the financial impact of total quality management practices in the Vietnamese hotel sector. Its distinctive contribution lies in examining how external environmental conditions shape the effectiveness of total quality management practices in enhancing hotel financial performance.
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