The purpose of this paper is to operationalize the concepts of total quality management (TQM) and market orientation (MO) and to analyze the relationship between them in a major economic sector of activity, namely, the social services sector.
The paper analyzes the aforementioned relationships by means of a quantitative study carried out with information from managers of 137 Spanish organizations in the field of social service provision and, more specifically, in nursing homes for the elderly. Structural equation models were used to contrast the relationships.
Evidence is provided for the multi-dimensional structure of TQM and MO. The results confirm that TQM contributes to a greater degree of MO in the organizations analyzed, since a significant positive relationship between a set of components of the first concept (namely, processes, leadership and people) and the second is found.
Managers need to take into account the fact that the application of a management system in nursing homes that is based on TQM dimensions favors the development of an MO culture. The staff are the key factor in orientating the residential home toward the market.
The research covers a gap in the literature since these relationships have not been studied empirically in depth in service sectors such as social services and nursing homes, despite great and growing economic importance of this sector.
