The role of digital management control systems on TQM practices and employee performance: an empirical study on Saudi service organizations

Abstract

This study explores how Digital Management Control Systems (MCS) affect employee performance in Saudi service organizations by focusing on the role of Total Quality Management (TQM 4.0) that aims to address the growing need for digital integration in the Kingdom's evolving economy. Data was collected from 108 employees across different service organizations. Using statistical methods like linear regression and mediation analysis to test the relationships. Additionally, quality tools such as Pareto charts and fishbone diagrams were used to identify implementation barriers. The results show a full mediation effect. This means that digital systems do not improve performance directly instead, they improve quality practices first, which then strongly boosts employee performance. This suggests that quality management serves as the essential mechanism through which digital tools generate value. The study also found that employees’ resistance to change is the biggest challenge to digital transformation. This highlights the importance of addressing human factors alongside technical upgrades to achieve successful organizational change. Finally, the research proposes a digital dashboard mockup to help managers easily monitor performance and solve these issues. Also, a study proves that investing in technology is most effective when combined with strong quality management practices.