Comparative Study of the Impact of TQM on the Banks Profitability: A Case Study of Mehr-Egtesad and Saderat Banks in Zanjan Province

Document Type: Case Study


1 Faculty of Humanities and Social Sciences, Zanjan Branch, Islamic Azad University, Zanjan, Iran

2 Department of Management, Faculty of Humanities and Social Sciences, Zanjan Branch, Islamic Azad University, Zanjan, Iran


Since financial service provider organizations, especially banks work in an environment with indistinct products, quality of their services is the first competitive tool. This research aimed at examining the impact of total quality management on profitability of Mehr-Egtesad Bank and Saderat Bank. For doing so, six hypotheses were tested. The research statistical population consisted of 135 individuals. The research sample size was 100 individuals chosen via Cochran formula (limited population). The data were collected by a standard questionnaire including 27 items with six scales. The questionnaires were distributed among 100 managers and employees of the mentioned banks. The research main variables factors were identified by exploratory factor analysis and then the hypotheses were evaluated by Lisrel software using structural equations modeling. The results showed a positive impact of total quality management in Mehr-Egtesad Bank and Saderat Bank confirmed by previous research results.


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