1. Implementation of Total Quality Management in Mongolian Universities
Fenghueih Huarng & Oyunchimeg Zagd
Southern Taiwan University 

2. OUTLINE Motivations and Objectives Literature Review
Research Design & Methodology
Analysis & Results
Conclusions and Recommendations

3. Motivations Changes in higher education:
Many higher education institutions have been stimulated and influenced by a total quality framework for both teaching and administrative support functions in Mongolia.
Changes in higher education:
students' requirements and needs,
increasing demands from business and industry,
increasing demands from governing boards and the public sector,
decreasing funds, and increasing competition among higher education institutions.
In addition, no research has been conducted for developing a TQM implementation model that can be used by Mongolian universities to improve their TQM implementation efforts.

4. Objectives Research Questions:
To obtain the effects of TQM implementation on overall business performance in Mongolian Universities
To obtain a TQM implementation model for Mongolian Universities.
Research Questions:
What are the effects of TQM implementation on overall business performance in Mongolian universities?
What kind of TQM implementation model should be developed to guide Mongolian universities?
How can this TQM implementation model be demonstrated in practice?

5. LITERATURE REVIEW

6. Framework Comparison of TQM Constructs
Saraph et al. framework (1989)
Flynn et al.
framework (1994)
Ahire et al.
Framework (1996)
Proposed
framework 1
Role of divisional top
management and quality
policy
Quality leadership
Top management
commitment
Leadership 2
Role of quality department
Quality improvement
rewards
Customer focus
Supplier quality management 3
Training
Process control
Supplier quality
management
Strategic planning 4
Product/service design
Cleanliness and
Organization
Design quality
Assessment 5
Supplier Quality Management
Feedback
Benchmarking
Process control and
improvement 6
Process management/
operating
New product quality
Internal quality
information usage
Product design 7
Quality data and reporting
Interfunctional design
process
Statistical Process Control usage
Quality system 8
Employee relations
Selection for
teamwork potential
Employee empowerment
Employee participation 9
Teamwork
Employee involvement
Recognition and reward 10
Supplier relationship
Employee training 11
Customer involvement
Product quality 12
Supplier performance
Included 2 more elements, which were not found in their framework
Relatively the same element
similar
Was excluded in the proposed framework, since every department in organization was involved in quality management.
Not included in the proposed framework. They represented TQM outcomes.

7. TQM Definition – in this Study
A management philosophy for continuously improving overall business performance based on
leadership,
supplier quality management,
strategic planning,
assessment,
process control and improvement,
product design,
quality system improvement,
employee participation,
recognition and reward,
employee training,
& customer focus.
In 1989, Davis introduced TAM, is based-constructs and relationships in the theory of reasoned action (TRA).
This study will used TAM, because TAM is most influential model that widely applied for predicting the behavioral intention and use of information system, and has recently been developed to anticipate Internet adoption as well.
TAM includes five-concepts- perceived usefulness, perceived ease of use, attitude toward use, intention to use, and actual use.
TAM postulates that constructs perceived usefulness and perceived ease of use are influenced by external variables
For the purpose of this study, we used two construct, which are known to be important for the intention to use online banking amongst Mongolian banking customers - prior experience and perceived credibility
Computer Experience, which is the result of acquiring and processing stimulation over time, is one factor that determines how much exposure to a particular stimulus a person accepts.
Perceived credibility is the degree to which a person believed that using a particular system would be free of privacy and security threats.

8. Definitions of TQM Constructs
1. Leadership
The ability of top management to lead the organization in continuously pursuing long-term overall business success.
2. Supplier quality
Management
The set of supplier-related quality management practices for improving suppliers’ quality of products and services. This is exemplified by firm-supplier partnership, product quality as the criterion for supplier selection, participation in suppliers, communication with suppliers, understanding of supplier performance, and supplier quality audit (Mann, 1992; Zhang, 2000).
3. Strategic
planning
The process of identifying an organization’s long-term goals and objectives and then determining the best approach for achieving those goals and objectives.
4. Evaluation
The systematic examination of the extent to which an entity is capable of fulfilling specified requirements.
5. Process control
and improvement
Process control and improvement connotes a set of methodological and behavioral practices, which are implemented to control and improve processes that produce products and services (Juran and Gryna, 1993).
6. Product design
A certain special techniques or methods should be used to achieve successful product design (Juran and Gryna, 1993). An experimental design is a widely used tool in product design. Its application has significantly reduced the time and expense needed to develop the new product, greatly improved the performance of the new product, and led to the success of new product design.

9. Definitions of TQM Constructs (cont’.)
7. Quality system
improvement
The organizational structure, procedures, processes and resources needed to implement quality management (ISO 8402, 1994).
8. Employee
participation
The degree to which employees in an organization engage in various quality management activities. By personally participating in quality management activities, employees acquire new knowledge, see the benefits of the quality disciplines, and obtain a sense of accomplishment by solving quality problems. Participation is decisive in inspiring action on quality management (Juran and Gryna, 1993).
9. Recognition and
reward
Recognition: the public acknowledgment of superior performance of specific activities. Reward: benefits, such as increased salary, bonuses and promotion, which are conferred for generally superior performance with respect to goals (Juran and Gryna, 1993). Public recognition is an important source of human motivation (Deming, 1986).
10. Education and
training
Training refers to the acquisition of specific skills or knowledge. Training programs attempt to teach employees how to perform particular activities or a specific job. Education, on the other hand, is much more general, and attempts to provide employees with general knowledge that can be applied in many different settings (Cherrington, 1995).
11. Customer focus
The degree to which an organization continuously satisfies customer needs and expectations. A successful firm recognizes the need to put the customer first in every decision made (Philips Quality, 1995).

10. Definitions of Overall Business Performance Constructs
1. Employee
satisfaction
The degree to which employees like their jobs (Spector, 1997); it is simply how employees feel about their jobs and different aspects of their jobs.
2. Product quality
The development, design, production and service of a product that is most economical, most useful, and always satisfactory to the consumer (Ishikawa ,1985)
3. Customer
The degree to which an organization’s customers continually perceive that their needs are being met by the organization’s products and services (Anderson et al., 1994).
4. Strategic business
performance
The final result of running an organization, which can reveal the effects of doing business, show the competitive capability of the organization in the marketplace and its financial health, and predict its future success or failure. Strategic business performance is a good indicator to test the effects of TQM implementation and of an organization’s efforts in pursuing employee satisfaction, product quality, and customer satisfaction.

11. RESEARCH DESIGN & METHODOLOGY

12. Research Model
the extended model consists of 7 constructs, perceived usefulness, perceived ease of use; perceived credibility, prior experience, consumer attitude, behavioral intention and actual usage,
we will examining 11 hypothesis and their relationship which may be prove (batlah notloh, turshih) to be important in the context online banking.

13. Hypotheses Between TQM Implementation Constructs and Overall Business Performance
Leadership has a positive effect on strategic business performance.
H2:
Leadership has a positive effect on employee satisfaction.
H3:
Employee participation has a positive effect on employee satisfaction.
H4:
Employee training has a positive effect on employee satisfaction.
H5:
Recognition and reward has a positive effect on employee satisfaction.
H6:
Supplier quality management has a positive effect on product quality.
H7:
Strategic planning has a positive effect on product quality.
H8:
Assessment has a positive effect on product quality.
H9:
Process control and improvement has a positive effect on product quality.
H10:
Product design has a positive effect on product quality.
H11:
Quality system improvement has a positive effect on product quality.
H12:
Customer focus has a positive effect on customer satisfaction.

14. Hypotheses Among Overall Business Performance Constructs
Employee satisfaction has a positive effect on product quality.
H14:
Employee satisfaction has a positive effect on customer satisfaction.
H15:
Product quality has a positive effect on customer satisfaction.
H16:
Product quality has a positive effect on strategic business performance.
H17:
Customer satisfaction has a positive effect on strategic business performance.

15. Questionnaire Design
The questionnaire of this research comprises of 3 parts:
Part (1): demographic information, such as gender, age and occupation.
Part (2): TQM implementation has 11 sections
Leadership (7 items), Employee participation (4 items),
Employee training (5 items), Recognition and reward (5 items),
Supplier quality management (3 items), Strategic planning (5 items),
Assessment (7 items), Process control & improvement (7 items),
Product design (5 items), Quality system improvement (5 items)
& Customer focus (5 items).
Part (3): Overall Business Performance consists of 4 parts:
Employee satisfaction (5 items), Product quality (7 items),
Strategic Business Performance Product quality (8 items)
and Customer satisfaction (2 items).
A survey questionnaire (both in English and Mongolian) with 78 items was distributed to university lecturers in Mongolia.
5-point Likert scale, 5 for Strongly agree, 4 for Agree, 3 for Neutral, 2 for Disagree and 1 for Strongly disagree.

16. Analysis Procedures

17. Goodness of Fit Indices – in this Study (Byrne, 2001)
Goodness-of-fit Index
Recommended Value
2 (Chi-square)
df (degrees of freedom)
p (p-value)
2/df (Chi-square/degrees of freedom)
<3
RMR (Root mean squared residual)
<0.05
GFI (Goodness of fit index)
≥0.9
NFI (Normed fit index)
>0.9
IFI (Incremental fit index)
TLI (Tucker – Lewis coefficient index)
CFI (Comparative fit index)
RMSEA (Root mean square error of approximation)
Between 0.05 and 0.08

18. RESEARCH ANALYSES AND
RESULTS

19. Dataset of the Respondents
Frequency
Percent
1. Health Science University of Mongolia
155
58.3
2. National University of Mongolia 54
20.3
3. Mongolian University of Science and Technology 57
21.4
Total
266
100.0
The data was collected between February and March 2010.
300 questionnaire was distributed to a total of 3 universities and 266 completed forms received giving a response rate of 88.7%.
300 respondents participated in this survey and they were chosen by using convenience non random sampling. 36 questionnaire contain missing data and are abandoned. Therefore, we possess 264 useful questionnaires.
53% of the participants are female. There were 62.5% of the respondents are less than 30 years old and 69.3% of the respondents possess a graduated school, 45.5% of them earn between – ₮ per month.

20. Characteristics of the Respondents (n=266)
Frequency
Percentage
Occupation
Director 2
0.8
Vice Director 18
6.8
Lecturer
246
92.4
Gender
Male 95
35.7
Female
171
64.3
Age
< 30 years old 56
21.1
years old 98
36.8
41-50 years old 65
24.4
51-60 years old 35
13.2
> 61 years old 12
4.5

21. Estimation of Intra-Class Correlation Coefficient (ICC)
Intra-class correlation coefficient ( ) is a measure of agreement between observers that can be used when your observations are scaled on an interval or ratio scale of measurement.
“J” - a number of groups, “F” - the value using F-test in ANOVA, “np” - a sample size of the research.
Based on Cohen (1988), the following criteria are used to decide whether the ICC (ρ) is high enough to use hierarchical liner model:
0.059 > ≥ low correlated among different groups
0.138 > ≥ medium correlated among different groups
≥ high correlated among different groups :
The results for estimation of ICC provided the requirement , therefore the datasets were combined. j np F
ICC
Employee Satisfaction 3
266
1.420
0.003
Product Quality
7.790
0.049
Customer Satisfaction
2.579
0.012
Strategic Business Performance
6.835
0.042
≥ 0.059

22. Confirmatory Factor Analysis
For the Measurement TQM Implementation Model
For the Measurement Overall Business Performance Model

23. Assessment of the Measurement TQM Implementation Model - 1st RUN
The results of CFA:
2= , df=1429, p<0.001, 2/df=1.982, RMSEA=0.06.
GFI=0.723, NFI=0.736, IFI=0.849, TLI=0.836, CFI=0.847, RMR=0.061
24 items were omitted “Loadings≥0.71”
Originally EMP_P3 was with a low loading (0.67), however one indicator cannot form a factor by itself. Therefore, it was not omitted.

24. Assessment of the Measurement TQM Implementation Model - 2nd RUN
2 = , df=409, p<0.001, 2/df=1.624, RMR=0.037, RMSEA=0.049, IFI=0.953, CFI=0.952, TLI=0.942,
GFI=0.873, NFI=0.886

25. Assessment of the Measurement TQM Implementation Model – 3rd RUN
2/df=1.437
RMR = 0.034
RMSEA = 0.041
NFI=0.901,
IFI=0.968,
TLI=0.959
CFI=0.967
GFI=0.888

26. Assessment of the Measurement Overall Business Performance Model – 1st RUN
2/df=4.5
RMSEA=0.115
RMR=0.059,
GFI=0.720,
NFI=0.807,
IFI=0.844,
CFI=0.843
TLI=0.821.

27. Assessment of the Measurement Overall Business Performance Model – 2nd RUN
“Loadings≥0.71”
For better fit model, the following 5 items were removed:
PRO_Q6(0.59), PRO_Q5(0.60), EMP_S4(0.69), PRO_Q7(0.70), PRO_Q4(0.63)
2/df=4.880
RMSEA=0.121
GFI=0.764,
IFI=0.880,
CFI=0.880
TLI=0.855
NFI=0.854.
Only RMR=0.048

28. Assessment of the Measurement Overall Business Performance Model – 3rd RUN
2/df = 2.104
RMR=0.043,
GFI=0.908,
NFI=0.943,
IFI=0.969,
TLI=0.959,
CFI=0.969
RMSEA=0.065

29. Reliability and Validity
(For Two Measurement Models)

30. Composite Reliability
Constructs
Composite Reliability
AVE
Cronbach's Alpha
Leadership
0.864
0.560
0.868
Employee Participation
0.894
0.584
0.717
Recognition and Reward
0.878
0.643
0.879
Employee Training
0.835
0.628
0.834
Supplier Quality Management
0.830
0.710
0.829
Strategic Planning
0.805
0.581
Assessment
0.737
0.891
Process Control Improvement
0.709
0.550
0.704
Product Design
0.855
0.748
0.853
Quality System Improvement
0.901
0.753
Customer Focus
0.810
0.588
0.808
Employee Satisfaction
0.882
0.652
0.885
Product Quality
0.845
0.646
0.841
Customer Satisfaction
0.886
0.796
0.887
Strategic Business Performance
0.926
0.614
0.933
- Cronbach’s alpha ≥ 0.7 (Nunnally, 1978)
- Composite reliability ≥ 0.7
- AVE ≥ 0.5 (Hair et al., 1999)
Cronbach’s alpha ranged between and 0.933, indicating a high reliability of the scales.
Also each construct manifests a composite reliability greater than the recommended threshold value of 0.7.
The AVE range between and 0.796, above the recommended 0.50 level.
Composite reliability = (sum of standardized loadings)2/ [(sum of standardized loadings)2 + (sum of indicator measurement error)]
Average variance extracted (AVE) = (sum of squared standardized loading)/[(sum of squared standardized loadings) + (sum of indicator measurement error)]
Indicator measurement error = [1– (standardized loading)2].

31. 1. Convergent Validity - AVE ≥ 0.5 (Bollen, 1989)
- Factor loadings ≥ 0.6 (Hatcher, 1994)
- C.R ≥ 1.96 (Byrne, 2001)
All AVE were greater than threshold value of 0.50.
All loadings exceeded the suggested value of 0.6 for all constructs.
Also critical ratio (C.R) for all constructs were larger than 1.96.
Therefore, all items used proved to achieve convergent validity in their respective scales.

32. Discriminant Validity Test Using Correlations between Constructs
Correlations between the constructs ≤0.85 (Kline,2005)
All correlations between TQM implementation constructs are in the range from to The highest correlation (0.868) was appeared between Recognition and reward and Process control improvement. Only this correlation exceeded the threshold of Other 54 correlations between TQM implementation constructs were below the recommended value of Thus, these correlations proved the discriminant validity in the TQM implementation model.

33. Discriminant Validity Test Using Correlations between Constructs (cont’.)
All correlations between overall business performance constructs are in the range from to This result indicated that correlations of these constructs below the recommended value of Therefore, discriminant validity proved in the overall business performance model.

34. Discriminant Validity Test Using AVE
“Squared correlation among factors AVE”
This criterion did not provide the following 5 cases:
Leadership and Strategic planning (0.610).
Leadership and Employee participation (0.608).
Recognition and reward and Process control improvement (0.753)
Strategic planning and Employee participation (0.656).
Process control improvement and Employee participation (0.619).
Other 50 squared correlations between TQM implementation constructs were provided this criterion.

35. Discriminant Validity Test Using AVE (cont’.)
For overall business performance model, only one case did not provide the criterion
“squared correlations among factors < AVE”: The squared correlation between Strategic business performance and Employee satisfaction
Other 5 squared correlations among factors for overall business performance model were provided this criterion.

36. Assessment of the Research Model (SEM)

37. First Run of SEM 2/df=1.654 RMR = 0.051 RMSEA = 0.050 IFI=0.931,
TLI=0.921
CFI=0.930
GFI=0.801
NFI=0.842

38. Second Run of SEM 2/df=1.345 RMR = 0.041 RMSEA = 0.036 IFI=0.965,
TLI=0.958
CFI=0.964
GFI=0.838
NFI=0.876

39. Results of Hypotheses Testing for the Second SEM
Twelve of the 17 SEM hypothesis tests were fully supported.
This finding indicated that the second SEM model fitted quite well in representing the data.
Three hypotheses regarding to employee satisfaction and two hypotheses regarding to product quality were not supported by the data in this study.

40. CONCLUSIONS AND
RECOMMENDATIONS

41. Research Question 1: What are the effects of TQM implementation on overall business performance in Mongolian universities?
First, leadership is the decisive factor in determining the success of organizational overall business performance. Mongolia is now trying to establish modern higher education system. All universities, especially state-owned have received more decision making autonomy than ever before. Regarding day-to-day operations, the government has no direct administrative authority. It is the role of top management to determine the university’s vision, strategy, policy, long-term goals, and the way to achieve these objectives. Top management is in charge of managing employees, motivating them to participate in quality improvement activities, encouraging them to share in the university’s vision, empowering them to solve quality problems, arranging resources for their education and training, and rewarding them for their quality improvement efforts. In other words, without strong leadership, it is impossible for a university to achieve a good overall business performance.
Second, the research findings can suggest that it is not necessary for all the TQM elements to be present to ensure the success of the TQM implementation and overall business performance. In other words, even if a few of the elements are not present, it is possible to obtain the required level of overall business performance.
Third, in this study, 5 hypotheses were not supported by the questionnaire survey data. This disconfirmation does not imply these constructs are unimportant or useless. Instead, universities should identify the problem areas of these constructs and implement them more effectively. For example, (1) assessment, (2) process control and improvement, and (3) quality system improvement are nearly alike functions for Mongolian universities.

42. Research Question1: (cont’.)
Because,
the university products are created using certain processes. Student knowledge is gained by learning, courses are taught, and new knowledge is achieved by researching.
In a university environment, there is an interrelationship among these processes that has an impact on the quality of the products. The quality of teaching/learning/researching is inspected against specifications.
A process quality system must be documented with an appropriate quality manual, procedures, instructions and records. This allows proper communication, audits and verification activities.
Therefore, the author preferred to combine these 3 constructs. Due to this solution, they should emphasize the implementation of actions that are formulated on the basis of various evaluation activities and establish their quality management systems according to the requirements of higher education institutions effectively. Thus, quality management systems will be effectively implemented in practice.
Fourth, Also university’s employees have the capacity to do their jobs better and study by themselves. In fact, improving employee satisfaction and overall business performance were not the major goal of training. Therefore, the author decided to remove the construct “Employee training”.

43. Research Question 2: What kind of TQM implementation model should be developed in order to guide Mongolian universities in implementing TQM?
Based on the results of testing the model of TQM implementation and overall business performance (Research model), the author decided to modify TQM implementation model for Mongolian universities in implementing TQM.
Modification of the model should be based on theory; modifications to the original model should be made only after deliberate consideration (Hair et al., 1992).
To modify the theoretical model of TQM implementation, the author tested SEM for all TQM implementation constructs one by one. Consequently, SEM test is conducted for each TQM implementation construct and the results are presented as follows:

44. 1. Run for the Leadership SEM
2 = (df=189, p<0.001),
2/df = 1.887, NFI=0.923, IFI=0.962, TLI=0.954 CFI=0.962, RMSEA=0.058 & RMR=0.049
GFI=0.891
“Leadership has a positive effect on strategic business performance and on employee satisfaction”.
O SEM: “Leadership has a positive effect on employee satisfaction” was not supported.
“Leadership has a positive effect on strategic business performance”

45. 2. Run for the Employee Participation SEM
2/df=2.034, GFI =0.901, NFI=0.943, IFI=0.965, TLI=0.955, CFI= RMR=0.044 and RMSEA=0.062
“Employee Participation has a positive effect on strategic business performance and on employee satisfaction”
O SEM the hypothesis “Employee Participation has a positive effect on employee satisfaction”

46. 3. Run for the Employee Training SEM
2/df=2.031, GFI =0.894, NFI=0.929, IFI=0.963, TLI=0.952, CFI=0.963, RMR=0.045, RMSEA=0.062
“Employee Training has a positive effect on strategic business performance and on employee satisfaction”.
O SEM: “Employee Training has a positive effect on employee satisfaction” was not supported.
Also, this study was concluded that “improving employee satisfaction and strategic business performance was not the major goal of training”.
Thus, this construct omitted for the modified model.

47. 4. Run for the Recognition and Reward SEM
2/df = 2.180, NFI=0.920, IFI=0.955, TLI=0.944, CFI=0.955, RMSEA=0.067, RMR=0.054 GFI=0.883
“Recognition and Reward has a positive effect on strategic business performance and on employee satisfaction”.
O SEM: “Recognition and reward has a positive effect on employee satisfaction” was not supported.
“Recognition and Reward has a positive effect on strategic business performance”.

48. 5. Run for the Supplier Quality Management SEM
2/df=2.079, GFI=0.901, NFI=0.934, IFI=0.964, TLI=0.953, CFI= RMR=0.043, RMSEA=0.064.
“Supplier Quality Management has a positive effect on product quality” was not supported.
O SEM the hypothesis “Supplier quality management has a positive effect on product quality”.
author prefers “Supplier Quality Management has a positive effect on employee satisfaction”.

49. 6. Run for the Strategic Planning SEM
2/df=2.026, GFI=0.894, NFI=0.931, IFI=0.964, TLI=0.953, CFI=0.963, RMR=0.042, RMSEA=0.062
“Strategic Planning has a positive effect on customer satisfaction” was not supported.
O SEM: “Strategic planning has a positive effect on product quality” was supported.
However, in university practice, strategic planning more influences to Strategic Business Performance than product quality and employee satisfaction. Thus, “Strategic Planning has a positive effect on strategic business performance” selected for the modified model.

50. 7. Run for the Assessment SEM
2/df = 2.004, NFI=0.933, IFI=0.965, TLI=0.955, CFI=0.965, RMR=0.044, RMSEA=0.062, GFI=0.896
“Assessment has a positive effect on customer satisfaction” was not supported.
O SEM: “Assessment has a positive effect on product quality” was not supported.
This study concluded that “assessment, process control and improvement, and quality system improvement are nearly alike functions for Mongolian universities. Thus, the author combined these 3 constructs under the name assessment.
“Assessment has a positive effect on product quality”.

51. 8. Run for the Process Control Improvement SEM
2/df=2.228, GFI=0.892, NFI=0.928, IFI=0.959, TLI=0.946,CFI=0.959, RMR=0.045, RMSEA=0.068.
“Process Control and Improvement has a positive effect on employee satisfaction and on strategic business performance”.
O SEM: “Process control and improvement has a positive effect on product quality” was not supported.
Also, this construct combined with the assessment and quality system improvement under the name assessment. Thus, the construct “process control and improvement” removed.

52. 9. Run for the Product Design SEM
2/df=1.967, GFI=0.903, NFI=0.938, IFI=0.969, TLI=0.958, CFI=0.968, RMR=0.041, RMSEA=0.060
“Product design has a positive effect on employee satisfaction and on product quality”
O SEM the hypothesis “Product design has a positive effect on product quality.” was supported.
“Product design has a positive effect on product quality”

53. 10. Run for the Quality System Improvement SEM
2/df=2.029, GFI=0.894, NFI=0.932, IFI=0.964, TLI=0.954,CFI=0.964, RMR=0.047, RMSEA=0.062.
“Quality system improvement has a positive effect on product quality” was not supported.
O SEM: “Quality system improvement has a positive effect on product quality” was supported.
However, the author preferred it to combine with constructs assessment and process control and improvement under the name assessment. Thus, the construct “quality system improvement” removed.

54. 11. Run for the Customer Focus SEM
2/df=2.246, GFI=0.880, NFI=0.924, IFI=0.956, TLI=0.944, CFI=0.956, RMR=0.047, RMSEA=0.069
“Customer focus has a positive effect on employee satisfaction, product quality, customer satisfaction and strategic business performance” were supported.
O SEM, the hypothesis “Customer focus has a positive effect on customer satisfaction” was supported.
“Customer focus has a positive effect on customer satisfaction”.

55. First Run of the Modified TQM Implementation Model
2/df=1.950
RMR=0.05
RMSEA=0.060
GFI=0.796,
NFI=0.801,
IFI=0.892,
TLI=0.880
CFI=0.891
the model was not acceptable.
“ Loadings≥0.71”
16 items were omitted

56. Second Run of Modified TQM Implementation Model
2/df=1.682
RMR=0.035,
RMSEA=0.051,
GFI=0.901,
NFI=0.906,
IFI=0.960,
CFI=0.959
TLI=0.950
The modified TQM Implementation Model was accepted.

57. Third Run of the Modified TQM Implementation Model
<-->
i45
15.316 i1 i2
11.672
i19
I23
9.608
2/df=1.523
RMR=0.033
RMSEA=0.044
GFI=0.911,
NFI=0.916,
IFI=0.970,
TLI=0.961
CFI=0.969

58. How can this TQM implementation model be demonstrated in practice?
Research Question 3:
How can this TQM implementation model be demonstrated in practice?
Modified SEM

59. Modified Model Original Model

60. First Run of Modified SEM
2/df=1.672
RMR=0.046
RMSEA=0.50
IFI=0.940,
TLI=0.931
CFI=0.939
GFI=0.822
NFI=0.863

61. Second Run of Modified SEM
Covariances
M.I. i5
<-->
i58
12.861
i55
i63
13.921
i76
16.109
i61 d4
12.850 d2
9.303
i74
Customer Focus
16.799
i23
i75
10.175
i33
Strategic Planning
10.820
i27
i26
9.604
i72
8.124 i8 i4
8.050
i18
i19
7.988 i7
7.269
5.149
2/df=1.455
RMR=0.042
RMSEA=0.041
IFI=0.960,
TLI=0.953
CFI=0.960
GFI=0.848
NFI=0.883

62. Results of Hypotheses Testing for Second Run of the Modified SEM

63. Conclusions
No research has been conducted for developing a TQM implementation model that can be used by Mongolian universities to improve their TQM implementation efforts. Therefore, the research objectives of this study were:
To obtain the effects of TQM implementation on overall business
performance in Mongolian Universities;
- To obtain a TQM implementation model for Mongolian Universities.
In order to achieve the two research objectives, three research questions were proposed as follows:
What are the effects of TQM implementation on overall business performance in Mongolian universities?
What kind of TQM implementation model should be developed in order to guide Mongolian universities in implementing TQM?
How can this TQM implementation model be demonstrated in practice?
These research questions were answered completely in this study for the research framework. Due to answers of research questions, the TQM implementation model for Mongolian Universities was obtained.

64. The TQM implementation model for Mongolian universities
This model tested in this study.
- This model fits the data well.
- All hypotheses of this model
were fully supported.
Therefore, we can implement this model in Mongolian higher education institutions’ practice.

65. Limitations of this Study
It is important to view this study in the context of its limitations.
First, data used to test the model came from only 3 state- owned universities. Therefore, the generalization is limited.
Second, the measure of perceived employee satisfaction in particular is relatively weak, because it asked respondents for their general perceptions of overall employee satisfaction in their respective universities. Thus, research findings might have been biased.

66. Contribution of this Study
In this study, the two theoretical models were formulated mainly on the literature that was developed in Western manufacturing contexts. However, the models were tested using data in universities (higher education institutions) of Mongolia. Therefore, a theory of quality management related to Mongolian higher education institutions was developed.

67. Recommendations
The TQM implementation model for Mongolian Universities could better meet the requirements of Mongolian higher education institutions. On this background, benefits and practical implications would be evident, and this model will deliver useful information for continuous quality improvement of study programs, teaching and support services in higher education institutions.

68. Thank you for your attention!