Organisational culture and third sector performance: exploring the role of soft and hard TQM

Abstract

The study aims to propose and preliminarily assess a conceptual model that explores how organisational culture (OC) shapes organisational performance (OP), alongside the roles of soft and hard total quality management (TQM) practices within the third sector organisations (TSOs) context. Grounded in contingency theory, stakeholder theory and the competing values framework (CVF), the study assesses the model's relevance through reflexive thematic analysis of 10 semi structured interviews with TSO representatives in Saudi Arabia. The findings support the proposed model and indicate that sustained OP depends on OC and the effective integration of both soft and hard TQM dimensions. While clan and hierarchy cultures initially appeared dominant, the analysis revealed notable gaps between cultural ideals and actual practices. Market and adhocracy cultures, critical for financial sustainability, were largely absent. Developing a coherent and balanced OC that incorporates all CVF culture types is essential for effective soft and hard TQM implementation and for achieving sustained performance in TSOs. As the proposed conceptual model has only undergone initial assessment through qualitative interviews, further quantitative analysis is required to establish its validity. Moreover, because the current findings are derived from the experiences of TSOs in Saudi Arabia, additional evaluation of the model across diverse contexts is necessary before drawing broader conclusions, ensuring that all relevant contextual factors are adequately considered. Recognising which cultural types are dominant or absent, and understanding how they influence OP and TQM in both their soft and hard forms, will enable TSOs to manage their OC more effectively, leading to improved TQM implementation and stronger OP. This research is the first to integrate OC, OP and both soft and hard TQM practices into a single model tailored to TSOs. This is particularly significant because TSOs continue to face performance challenges that TQM alone has not resolved, and although OC has been linked to these issues, no prior work has combined these variables within one model. Additionally, the study underscores the value of reflexive thematic analysis as a rigorous and insightful approach for qualitative business research.