system on its organizational performance with mediating role of cost of quality A case of IT sector of Punjab

Abstract

The need to improve the financial position of an organization directly correlates with the process of making quality improvements. Conceptually, as an organization’s quality system matures, changes should occur in the quality costs. Mature and immature quality systems directly affect the different quality costs because these quality costs are input and feedback to quality systems which are responsible for organization performance. This study aims to focus on the impact of maturity level of organizational quality system on performance of IT organizations of Punjab, with mediating role of cost of quality. A questionnaire was employed to collect data from 201 IT SMEs. Data was collected from the whole top level leadership and top level administration. Data was analyzed through statistical tool Multiple regression modeling for mediation and correlation analysis by using SPSS 20.0. The results revealed that quality system maturity levels are significantly correlated with COQ and organization performance. In the same manner COQ has a significant impact on quality maturity levels as well as organization performance and it significantly mediates the link among organization performance and quality system maturity levels. The current study presents clear guidelines to the top level leadership of IT organizations who are responsible for the implementation of quality in their organizations.