Effects of Dubai Quality Award on organisational performance mediated by Human Resource Development Practices in the United Arab Emirates

Abstract

As world markets are becoming increasingly integrated, UAE organisations are coming under strong pressure to ensure that their performance is up to global standards to remain globally competitive. For that reason, different models of quality awards are implemented in the UAE that strive to improve and develop organisations. The Dubai Quality Award (DQA) is one of the most prestigious quality awards in the UAE. The DQA derives from the Excellence Model of the European Foundation for Quality Management (EFQM) with nine criteria: five criteria for enablers and four for results. These criteria seek to improve the organisation’s performance. There are three categories in this award: Dubai Quality Award Appreciation, Dubai Quality Award Category, and Dubai Quality Award Gold. Many organisations participate in different quality awards for different reasons. Some are interested to increase their profit, reputation, market share, and improve productivity or sales growth, while others participate simply to imitate the approach of their competitors without properly realising the benefits of such awards. Participating in any quality award process is not an easy decision. Top management believe that quality awards require them to change their policy, strategy, and sometimes their organisational chart to meet quality standards. Winning awards can enhance the reputation of an organisation but may not provide consumers with real indicators of quality. The objective of this study is to determine whether receiving the DQA has positive implication for Human Resource Development Practices (HRDP) and by extension organisational performance (OP) of the award recipients over the three years following the award year. For this study, secondary data relating to DQA scores was collected from Department of Economic Development (DED) archive, and primary data relating to HRDP and OP was collected from the individual DQA recipients. Data elicited were subjected to statistical analyses using the Partial Least Squares (PLS) and Structural Equation Model (SEM) approach. This was to measure the relationship between DQA criteria and organisational performance through the mediating effects of HRDP. For the first time, this research measured the effects of each of the five components of DQA on OP, as well as the mediating effects of HRDP. The results indicated that the DQA significantly enhances organisational performance, and that HRDP is a statistically significant mediator between DQA and OP. The contributions to theoretical domains of quality management, human resources development and organisational performance are highlighted based on the results of this study. Recommendations based on research findings were also offered for professional practice and for future research.