Investigating TQM Strategies for Sustainable Customer Satisfaction in GCC Telecommunications

Abstract

Telecommunications firms face intense competition driven by rapid innovation and shifting consumer expectations. To remain competitive, companies are adopting Total Quality Management (TQM) to enhance customer satisfaction, corporate stability, and sustainability. This study examines TQM’s effects on customer satisfaction within Gulf Cooperation Council (GCC) countries’ telecommunications sector using secondary data from three firms’ quarterly reports (2019–2023). Descriptive, correlation, and regression analyses with STATA software reveal a significant increase in net promoter scores, indicating firms’ commitment to meeting evolving customer needs. Employee engagement and process management positively affect customer satisfaction, while continuous improvement practices and customer focus do not show a statistically significant influence. The research underscores TQM’s importance in fostering sustainable customer satisfaction by enabling telecom companies to adopt customer-centric strategies for achieving sustainable growth and long-term success. Aligning business processes with customer needs, especially in complaint handling, is crucial. The study advocates for implementing advanced customer relationship management (CRM) systems to better understand customer preferences. These strategic initiatives are vital for telecom firms to maintain competitiveness, enhance customer satisfaction, and contribute to the region’s overall economy.

1. Introduction

In the current business environment, organizations face intense competition from local and global firms that offer outstanding products and services in terms of affordability and quality to customers [1]. Customer satisfaction is not only a key performance indicator but also a strategic imperative for businesses seeking long-term success. It reflects the extent to which a company’s products or services meet or exceed customer expectations, leading to increased loyalty and improved organizational performance. To realize customer satisfaction, businesses are attempting to implement TQM, a comprehensive management philosophy that emphasizes continuous improvement, customer focus, and employee engagement. However, it is important to highlight that TQM concerns much more than customer satisfaction. TQM is an overarching organizational strategy for continuously improving products, services, and processes to realize business efficiency and satisfy consumer needs [2].

Sustainability and TQM are closely intertwined, as both emphasize continuous improvement and stakeholder satisfaction. TQM focuses on enhancing processes, reducing waste, and ensuring quality in every aspect of an organization, which aligns with sustainability goals of efficient resource use and long-term viability. Integrating TQM practices into business operations enhances customer satisfaction by ensuring consistent quality, and it supports corporate stability and sustainability. By promoting efficient resource use, reducing waste, and improving social responsibility, TQM aligns with sustainability goals, leading to long-term business success [3]. This synergy helps organizations meet regulatory requirements, improve their reputation, and achieve competitive advantages. Studies show that firms implementing TQM practices are better equipped to achieve sustainable development goals [4]. Furthermore, by adopting TQM, firms are able to improve on their operations, enhance the quality of products and services, and focus on their customers. According to Zaid et al. [5], TQM demands that organizations adjust their quality to the level demanded by customers to remain competitive. A growing number of companies have embraced TQM as a key strategy for improving customer retention, customer satisfaction, and firm performance. Firms that have won quality awards generally outperform other companies with regard to customer satisfaction, income measures, and market value [2].

In the Kingdom of Saudi Arabia, the telecommunications industry is highly competitive due to the large number of mobile service providers that also face difficulties in satisfying the diverse needs of customers. For instance, in Q3 of 2020, the total number of mobile service complaints amounted to 14,720 [6]. Zain, a telecommunications company, accounted for the highest number of mobile voice complaints, with 30 complaints per 100,000 subscribers, followed by Saudi Telecom Company (STC), Mobily, Lebara Mobile, and Virgin Mobile. The complaints were about financial obligations, poor services, and billing. Due to these challenges, there is a need to deliver high-quality services so as to keep current customers, attract new ones, and gain competitive advantages. Some of these companies have adopted TQM practices such as continuous improvement, customer focus, process management, and employee engagement to improve the quality of their products and services.

Similarly, in the UAE and Qatar, the telecommunications industry is fiercely competitive, with operators striving to improve service quality and meet diverse customer needs. In the UAE, a May 2023 Opensignal report highlights Etisalat’s excellence in download speeds, video experience, and 5G availability, while du leads in gaming and voice app experiences. Challenges such as network reliability, billing, and customer service persist, requiring continuous infrastructure improvements to stay competitive [7]. In Qatar, a 2021 study identifies ease of use, information content, responsiveness, and security of mobile applications as key factors influencing customer satisfaction, with application design, reliability, empathy, and prices being less significant [8]. Both regions’ outcomes underscore the importance of focusing on critical service delivery aspects to boost customer loyalty and satisfaction, leveraging TQM practices to gain a competitive edge.

From the existing literature, few studies have been performed on the influence of TQM on customer satisfaction in the GCC countries, with available studies focusing mainly on other sectors and countries. For example, Zaid et al. [5] focused on Palestine’s health sector, and Noori [2] examined the Indian retail sector, while Nunkoo et al. [9] focused on the UK hotel industry. Nguyen and Nagase [10] focused on Vietnam’s healthcare facilities. The findings from these studies may not be relevant in the context of telecommunications firms in the GCC. Additionally, existing studies have found inconsistent results on the relationship between TQM dimensions and customer satisfaction [11]. As such, this study seeks to fulfil these research gaps and answer the following questions:

• What are the effects of process management on customer satisfaction in the GCC telecommunications sector?
• How does customer focus influence customer satisfaction in the GCC telecommunications sector?
• What are the effects of continuous improvement practices on customer satisfaction in the GCC telecommunications sector?
• What are the effects of employee engagement and empowerment on customer satisfaction in the GCC telecommunications sector?

By answering these questions, the study contributes to the existing literature by providing empirical evidence on the relationship between TQM practices and customer satisfaction specifically within the GCC telecommunications sector. It highlights the unique challenges and opportunities in this region and offers insights into how TQM can be leveraged to enhance customer satisfaction and achieve sustainable growth.

The remainder of this paper is organized as follows: Section 2 reviews the theoretical frameworks relevant to TQM and customer satisfaction. Section 3 provides a literature review on the synergy between sustainability, customer satisfaction, and TQM, as well as the effects of process management, customer focus, continuous improvement practices, and employee engagement on customer satisfaction. Section 4 describes the methodology used in this study. Section 5 presents the results of the analysis, followed by a discussion of the findings in Section 6. Section 7 outlines the practical implications. Section 8 discusses limitations and future research directions. Finally, Section 8 concludes the study.

2. Theoretical Frameworks Relevant to TQM and Customer Satisfaction

Sabri and Mohamad [1] explained TQM as a strategic approach to improving organizational performance by embracing technical and socio-cultural factors. In contrast, Achieng and Gitonga [12] described TQM as a management philosophy that implants quality awareness in all areas of operations to deliver high-quality products and services to customers. Similarly, Noori [2] explained TQM as an organizational strategy for continuously improving products, services, and processes to realize business efficiency and satisfy consumer needs. Rather than providing a general understanding of TQM, this study specifically employs these definitions to analyze how TQM practices such as process management and employee engagement directly influence customer satisfaction in the GCC telecommunications sector. On the other hand, customer satisfaction is the measurement that shows customers’ level of happiness with a firm’s products and services [13]. Firms can determine customers’ satisfaction levels based on surveys and ratings. This study leverages this definition to examine the direct effects of TQM practices on measurable customer satisfaction indicators, such as net promoter scores, within the context of the telecommunications industry. To directly address sustainable customer satisfaction through TQM strategies, this study employs Deming’s System of Profound Knowledge (SoPK) as the primary theoretical framework. The SoPK provides a comprehensive approach to understanding TQM practices that focus on continuous improvement, customer focus, and systemic thinking, essential for achieving and maintaining high levels of customer satisfaction.

2.1. Deming’s System of Profound Knowledge (SoPK)

Developed by W. Edwards Deming, the System of Profound Knowledge provides a comprehensive framework specifically tailored to explain TQM strategies for sustainable customer satisfaction. This framework consists of four interrelated components:

• Appreciation for a System: Understanding the organization as a system of interrelated processes and people working together towards a common goal. In TQM, this means optimizing the entire system to improve customer satisfaction.
• Knowledge of Variation: Recognizing the variability in processes and distinguishing between common cause variation and special cause variation. TQM strategies aim to reduce variability to ensure consistent and reliable service quality, directly impacting customer satisfaction.
• Theory of Knowledge: Basing management decisions on knowledge and facts rather than assumptions. Continuous learning and improvement, driven by data, help organizations adapt to changing customer needs, ensuring sustainable satisfaction.
• Psychology: Understanding human behavior and motivation, fostering employee engagement and collaboration. TQM strategies emphasize creating a culture of respect and involvement, essential for sustaining high levels of customer satisfaction.

By integrating these components, SoPK provides a theoretical framework that focuses not only on improving processes and quality but also on fostering a culture of continuous improvement and collaboration, essential for sustainable customer satisfaction [14].

2.2. Kano Model

Developed by Noriaki Kano in the 1980s (see Figure 1), this model categorizes customer preferences into basic needs, performance needs, excitement needs, indifferent needs, and reverse needs (Wu et al., 2020 [15]). Businesses can then prioritize the features of their products or services based on how they can contribute to customer satisfaction. In the context of TQM, practices such as customer focus, process management, continuous improvement, and employee engagement can address basic needs (must-have needs for customer satisfaction), excitement needs, and performance needs (features that enhance customer satisfaction) [15]. In this study, the Kano Model serves as a theoretical framework to categorize and analyze the effects of TQM practices (such as customer focus, process management, continuous improvement, and employee engagement) on different types of customer needs, providing a nuanced understanding of how these practices enhance customer satisfaction in the GCC telecommunications sector.

2.3. Service Quality Theory

Often linked to the SERVQUAL model, service quality theory highlights the influence of service quality on consumer satisfaction based on the dimensions of assurance, empathy, reliability, responsiveness, and tangibles [17]. By adopting TQM, firms can enhance their service quality by focusing on aspects such as continuous improvement, customer focus, employee empowerment/engagement, and process management. This study utilizes service quality theory to frame the analysis of how TQM practices can improve these dimensions of service quality in the telecommunications sector, thereby impacting customer satisfaction. By focusing on continuous improvement, customer focus, employee empowerment/engagement, and process management, the research underscores the practical application of service quality theory in enhancing customer satisfaction.

2.4. Customer Relationship Management

According to [18], customer relationship management (CRM) focuses on managing the relationships and interactions between organizations and customers throughout their lifecycle to enhance customer loyalty and satisfaction. By embracing TQM practices, organizations are capable of building strong relationships with their customers by consistently providing quality products and services that meet or exceed customer expectations. In this research, CRM theory underpins the investigation of how TQM practices contribute to building strong customer relationships. By consistently providing quality products and services that meet or exceed customer expectations, the study illustrates the foundational role of CRM in achieving sustainable customer satisfaction in the telecommunications industry.

3. Literature Review

This literature review delves into the synergy between sustainability, customer satisfaction, and TQM, and the effects of process management, customer focus, continuous improvement practices, and employee engagement on customer satisfaction. Ultimately, this section formulates research hypotheses to define objectives and steer the focus of this dissertation.

3.1. Synergy between Sustainability, Customer Satisfaction, and TQM

Sustainability and TQM are closely related, with both emphasizing continuous improvement and customer satisfaction. TQM aims to enhance processes, reduce waste, and ensure quality in every organizational aspect, aligning with sustainability goals of efficient resource use and long-term viability. By integrating TQM practices, companies can achieve sustainability by minimizing environmental impact and improving social responsibility [19]. This synergy allows organizations to meet regulatory requirements, improve their reputation, and gain competitive advantages. Additionally, TQM fosters a culture of continuous improvement and employee engagement, essential for sustainable development [3]. Companies implementing TQM practices are better equipped to achieve sustainable development goals, contributing to economic, social, and environmental dimensions of sustainability [4]. Consequently, the integration of TQM and sustainability principles can lead to enhanced organizational performance and long-term success. Customer satisfaction is integral to corporate sustainability, particularly in the service sector, where it serves as a critical competitive priority. High customer satisfaction fosters customer loyalty, which is essential for long-term profitability, market value, and overall sustainability of firms. The relationship between customer satisfaction and corporate sustainability underscores that the former significantly influences customer loyalty and long-term customer relationships, which are critical indicators of corporate sustainability [20]. A study utilizing the European Customer Satisfaction Index (ECSI) model in the Slovak electronic communications market highlights the intricate relationships between customer satisfaction, customer loyalty, and corporate sustainability. This model elucidates how enhancing service quality can fortify customer-based corporate sustainability. Companies that achieve high customer satisfaction can adapt their competitive strategies to improve service quality and, consequently, their sustainability in the market [20]. Additionally, research in the banking sector indicates that sustainability practices can enhance customer satisfaction and loyalty by building trust. Trust serves as a mediator between sustainability initiatives and customer satisfaction, suggesting that ethical and sustainable business practices are fundamental to fostering long-term customer relationships and achieving corporate sustainability [21].

3.2. Effects of Process Management on Customer Satisfaction

Trkman et al. [22] defined process management as a systematic approach that ensures that effective and efficient business processes are in place by looking at the entire business process to analyze current systems, spot bottlenecks, and identify areas of improvement. It is a long-term strategy that constantly monitors business processes to maintain optimal efficiency and boost organizational competitiveness. Existing studies show a positive relationship between process management and customer satisfaction. For instance, Ooi et al. [23] showed that TQM dimensions, specifically process management, had a significant and positive influence on customer satisfaction for Malaysian SMEs. As process management focusses on monitoring operations, the SMEs were able to manage, organize, and solve customer requirements to improve their satisfaction. In particular, the firms were able to streamline consumers’ data in an efficient way to enhance operations and product delivery. In the same vein, Hassan et al. [24] established that successful implementation of process monitoring and control by Pakistani technological firms significantly improved overall efficiency, which is reflected in improved quality and customer satisfaction. Consistent with this, Nguyen and Nagase [10] established that process management has a positive and significant impact on the customer satisfaction levels in Vietnam hospital facilities. The findings by [25] indicated that adoption of TQM through process control and management in the Mexican manufacturing industry had a positive significant impact on customer satisfaction in the industry. The study underscored the place of management commitment in enhancing processes that improve the quality of output from the industry. Ultimately, the quality of the products has an influence on customer satisfaction and retention. As a result, this research formulates Hypothesis 1.

Hypothesis 1.

Process management positively influences customer satisfaction in the GCC telecommunications sector.

3.3. Influence of Customer Focus on Customer Satisfaction

Customer focus is described by [2] as placing the needs of all customers at the center of all management decisions and business development to enhance customers satisfaction. Similarly, Pattanayak and Punyatoya [26] explained customer focus as the extent to which a firm continuously satisfies the needs and expectations of customers. To implement customer focus, firms should be knowledgeable about customer requirements and demonstrate responsiveness to customers’ needs. Additionally, customer focus demands that firms should obtain information and maintain close relationships with customers so that their needs can be understood and expectations met. Previous research on the relationship between customer focus and customer satisfaction has shown that customer focus has a positive and significant impact on customer satisfaction. For instance, Noori [2] established that Indian retail firms that embrace customer focus realized a favorable and substantial impact on customer satisfaction levels. Notably, the study showed that demonstrating respect, consistency, credibility, transparency, and keeping promises were the key aspects of customer focus that positively impacted customer satisfaction. Pambreni et al. [27] echoed the views of [2] by indicating that Malaysian SMEs focusing on customers realized a positive and significant impact on their performance owing to increased customer satisfaction. Notably, the SMEs were able to customize their products based on individual customer preferences, offer responsive customer service, and continuously improve their products based on customers’ feedback, resulting in improved customer satisfaction. Along the same lines, Lepistö et al. [11] showed that Finnish SMEs that adopted customer focus positively and significantly impacted their customer satisfaction. This was attributed to increased product and service customization, faster responsiveness to customer complaints, transparent communication, and proactive problem-solving by the SMEs that generated positive experiences for customers and thus their satisfaction. Further, Sharma et al. [28] showed that customer focus in the form of responsiveness has a positive and significant effect on customer satisfaction in the Indian fashion industry. This was because the firms embraced customer centricity in terms of faster responsiveness and offering desirable products in line with customer needs. The study indicates, however, that a firm cannot respond effectively to customer needs without appreciating specific pain points, needs, and preferences. A number of studies notably [29,30] had different findings, indicating that while customer focus is pertinent in shaping satisfaction and loyalty, it has no statistically significant implication for customer satisfaction. All of these studies, however, underscore the value of being more proactive in customer centricity to effectively understand the customers’ needs and preferences. The studies indicate that it takes more than customer focus to enhance loyalty and satisfaction. Specifically, they emphasize leadership competence, organizational culture, and employee engagement as other pertinent drivers of customer satisfaction. Consequently, this research formulates Hypothesis 2.

Hypothesis 2.

Customer focus positively influences customer satisfaction in the GCC telecommunications sector.

3.4. Effects of Continuous Improvement Practices on Customer Satisfaction

Continuous improvement is described by [31] as the incremental and breakthrough improvements on the quality of products and services provided by organizations. Similarly, Pambreni et al. [27] explained continuous improvements as the ongoing development process that improves the ability of processes to change inputs into useful outputs. Continuous improvements should be embedded in the organizational operations to ensure that new and improved products and services are offered to customers. Importantly, continuous improvement plays a critical role in guiding the management to ensure that individual goals are met, customer expectations achieved, and firm performance improved [32]. Previous literature suggests that continuous improvements in the quality of products and services could result in improved customer loyalty and satisfaction. For instance, Hassan et al. [24] showed that Pakistani technological companies that successfully implemented continuous improvement realized improved organizational performance, as reflected in the improved quality of services and enhanced customer satisfaction. In the same vein, Koval et al. [33] indicated that reward systems and management commitment that encourages employees to engage in continuous improvement programs are crucial in improving customer satisfaction. By integrating employee training with these practices, firms can sustain continuous improvement and realize long-term satisfaction of customers as employees become more effective in their roles. In support of the above studies, ref. [34] revealed that continuous improvement has a positive and significant influence on customer satisfaction in Korean service firms. This was attributed to constant improvements to the targeting process, product, delivery, and value chain that resulted in improved firm performance and customer satisfaction. Drawing from the SERVQUAL model, Fida [35] echoes the above findings, noting that continuous improvements of services by Islamic banks in Oman significantly impacted customer satisfaction through increased reliability and responsiveness and a demonstration of empathy by employees. Accordingly, this research formulates Hypothesis 3.

Hypothesis 3.

Continuous improvement practices positively influence customer satisfaction in the GCC telecommunications sector.

3.5. Effects of Employee Engagement and Empowerment on Customer Satisfaction

According to [34], employee engagement or involvement implies active involvement in the decision-making process and feelings of commitment towards one’s work. It illustrates the strong emotional bond that employees have with their organizations. Importantly, employee engagement provides advantages that increase creativity and innovation of workers as well as boost morale and the commitment of employees to the organization. On the other hand, employee empowerment involves the provision of incentives or rewarding employees to identify and address quality problems [36]. In TQM, employees are empowered through extensive training in quality measurement to make effective decisions that can improve quality performance.

Empirical studies have indicated that employee engagement and empowerment have a positive effect on customer satisfaction. For instance, Sweis et al. [37] showed that TQM practices such as employee empowerment had a positive effect on Saudi Arabian healthcare workers. Notably, capacity-based projects, training opportunities, coordination, and collaboration improved employees’ levels of involvement and empowerment, resulting in increased satisfaction with their work and, subsequently, client satisfaction. Supporting this, the findings by [26,32] showed that employee empowerment by Taiwanese security firms positively and significantly impacted client satisfaction. This was due to training and provision of adequate resources that cultivated a positive work environment to address the needs of clients. Similarly, ref. [33] found that TQM practices in terms of staff engagement and constant development have a positive effect on the levels of employee and customer satisfaction in Qatar’s Ministry of Interior. Findings from their study helped to suggest effective strategic decisions that can be used by firms to improve employee efficiency and customer satisfaction. However, a study by [23] showed that a human resource focus, which entails employee involvement and empowerment, has an insignificant impact on customer satisfaction. This could be attributed to lack of clarity in empowerment guidelines, which causes employees to struggle when making decisions that align with customer expectations. In light of the above, this research formulates Hypothesis 4.

Hypothesis 4.

Employee engagement and empowerment positively influence customer satisfaction in the GCC telecommunications sector.

3.6. Comprehensive Model and Variables

To provide a clear understanding of TQM practices and the variables under study along with their theoretical foundations, we present the model in Figure 2, which is derived from the literature. A detailed explanation of the model and variables will be presented in the methodology section.

4. Methodology

This study deployed a quantitative research design to explore the impact of TQM practices on customer satisfaction in the GCC for three telecommunications firms. Quantitative design is considered appropriate as it takes an objective approach to gain insights from collected data through statistical analysis [38]. The data collection was carried out by contacting multiple telecommunications firms in the GCC, obtaining quarterly reports from 2019 to 2023. Firms were strategically sampled based on market presence, operational scale, geographic diversity, and data availability. This approach ensured a comprehensive dataset reflecting industry-wide trends in TQM practices. By engaging these firms directly, we gathered a robust foundation for analyzing the impact of TQM on customer satisfaction, allowing us to draw meaningful insights relevant to our research objectives.

Data Collection and Preparation Process

• Data Access and Extraction: Multiple telecommunications firms in the GCC were contacted and their performance reports requested. While some firms responded positively and provided the necessary reports, others did not reply, which influenced our final sample. For the firms that provided the reports, relevant data were manually extracted. Key performance indicators such as Net Promoter Score (NPS), training hours per employee, average internet download speed, first-call resolution percentage, and the number of escalated complaints per 100,000 subscribers were identified and recorded.
• Data Verification: To ensure accuracy, the extracted data were cross-verified with other available sources and reports. This step was crucial for maintaining consistency across different firms’ reporting standards.
• Data Standardization: The data were then standardized to align with uniform metrics and formats. This involved converting different units of measurement to a common standard where necessary and normalizing the data to ensure comparability.

Figure 3 briefs the data collection and preparation process.

Process management in the telecom sector entails the design, optimization, implementation, and monitoring of processes to enhance operation efficiency and customer satisfaction [39]. In a highly competitive market, firms in the sector must continuously enhance their processes. Yardsticks such as internet download speed indicate whether processes are becoming more efficient or not.

The telecom sector places great emphasis on continuous improvement practices, which involve constant endeavors to enhance processes, services, and products through both incremental and breakthrough improvements [40]. These practices are crucial in an industry that is marked by rapid technological advancements and ever-changing customer expectations. One of the yardsticks of continuous improvement in the telecom sector is a decline in the number of customers’ complaints. As such, this study adopted the number of escalated complaints per 100 k subscribers as a proxy for continuous improvement practices.

Moving forward, customer centricity is of great import, regardless of the sector. In the telecom sector, where customers’ needs keep evolving, an appreciation of those needs is pertinent in enhancing satisfaction and loyalty to a brand [41]. This study adopted first-call resolution (%) as a yardstick of customer focus. First-call resolution (FCR) in the telecom industry pertains to the proportion of customer service calls that are successfully resolved during the initial interaction with the customer, eliminating the necessity for any subsequent calls, transfers, or escalations [42]. This metric holds significant importance in customer service management as it directly reflects customer satisfaction and operational efficiency.

Employee engagement in the telecom sector represents the level of enthusiasm and dedication that employees have towards their roles and the organization [43]. The number of training hours plays a significant role in measuring this engagement. This metric demonstrates the firms’ commitment to continuous learning, which is essential for adapting to technological advancements and fostering innovation [44]. It indicates that providing sufficient training opportunities is directly correlated with increased job satisfaction and motivation, which are crucial in the rapidly changing telecommunications landscape.

Table 1. Research variables.

Nature of Variable	Research Variable	Symbol	Measure of Variable	Reference
Dependent Variable	Customer Satisfaction	NPS	Net promoter score (NPS)	[46,47]
Independent Variable	Employee engagement	EE	Training hours per employee	[43,44]
Independent Variable	Process management	PM	Average internet download speed (Mb/s)	[39,48]
Independent Variable	Customer Focus	CF	First-call resolution (%)	[41]
Independent Variable	Continuous improvement practices	CIP	The number of escalated complaints per 100 k subscribers	[40,49]

shows the specific data collected for each of the variables in the study. The data were statistically analyzed using descriptive statistics and inferential statistics. Descriptive statistics was used to summarize the data, while inferential statistics, specifically correlation and regression analysis, was used to assess the correlation and relationship between the study variables. Correlation analysis is crucial when determining the strength and direction of the relationship between two variables (in this case, TQM and customer satisfaction) [45]. Regression analysis was used to indicate the causal relationships between research variables, and this included evaluating the statistical significance of those relationships [45]. Data were analyzed using STATA software given its ability to analyze panel data. The multiple regression analysis was run with customer satisfaction (net promoter score) as the dependent variable, and customer focus, process management, employees’ engagement, and continuous improvement practices as dependent variables. The regression model is summarized below:

NPSit = β0 + β1EEit + β2.PMit + β3CIP + β4CF + εit

The symbols are as summarized in Table 1.

• β0 is the regression constant, and β1 to β4 are the regression coefficients
• εit is the error term
• i represents the three (3) telecom firms from the first to the third, while t is the time period in quarters, from the first quarter in 2019 to the last quarter in 2023 (1st to 20th).

5. Results

This section critically discusses the research results on the impact of TQM in customer satisfaction in the GCC telecommunications sector using the three sampled firms.

From

Table 2. Descriptive statistics.

Variable	Obs	Mean	Std. Dev.	Min	Max
NPS	60	77.550	4.176	69.000	85.000
Employee engagement	60	32.684	7.953	15.500	50.450
Continuous improvement practices	60	13.633	2.834	8.000	21.000
Customer focus	60	77.902	3.137	70.840	81.972
Process management	60	102.860	7.729	89.300	121.000

, the NPS variable has an average of 77.55, an indication of high customer satisfaction with the products and services provided by the telecommunications firms. The standard deviation (4.176) shows a significant difference of the NPS around the mean.

As for employee engagement, the average number of training hours per employee for firms in the telecommunications sector was 32.684. With a standard deviation of 7.953, there is a high level of variation in the employee engagement in the sector.

With regard to the continuous improvement practices variable, the findings indicated an average of 13.633 customer complaints per 100,000 subscribers. A standard deviation of 2.834 indicated a high level of difference between continuous improvement practices of firms in the telecom sector.

The customer focus variable showed an average of 77.902% first-call resolution, with a standard deviation of 3.137. The standard deviation indicates that there is a statistically significant difference in customer focus between the firms in the telecom sector.

Furthermore, process management for the three telecommunications firms had an average internet download speed of 102.860 Mb/s with a standard deviation of 7.729. The high standard deviation indicates a significant difference in the process management of the firms in the telecom sector.

Focusing on trends in the various variables in the study, the findings indicated that average internet download speed for the sector had consistently risen from 92.87 MB/S in the first quarter of 2019 to 115.57 MB/S in the last quarter of 2023, as shown in Figure 4. Being a proxy of process management, the findings basically pointed to enhanced processes by the firms in the sector, which have enhanced the download speed. This is ultimately bound to enhance customers’ satisfaction, as they find the internet speed very convenient and consistently increasing. This locks the customers to the brand.

With respect to customer focus, which was associated with first-call resolution (%) in the GCC telecom sector, this sharply fluctuated during the study period. Figure 5 shows the trend in first-call resolution (%). Overall, this has risen from 72.21% to 80.96%, which depicts an enhanced customer focus over the period.

Delving into the trends of employee engagement (training hours per employee) and net promoter score (customer satisfaction), the averages for the sector for each of the two variables rose, as shown in Figure 6 and Figure 7, respectively. An increment in employee engagement basically implies empowerment of employees with skills pertinent to steering productivity and innovation. This ultimately is bound to enhance customer satisfaction.

The study findings further indicated a fluctuation in the number of escalated complaints per 100,000 subscribers in the telecom sector. However, overall, the number of escalated complaints dipped from 15.67 in the first quarter of 2019 to 11.33 in the last quarter of 2023, as illustrated in Figure 8. This means that the complaints declined, which is a consequence of a continuous improvement in the telecom sector’s practices. This includes robust policies and practices put in place to effectively address gaps in services that have seen an escalation of complaints in the past.

With regard to the correlation analysis in

Table 3. Correlation matrix.

	NPS	Employee Engagement	Continuous Improvement	Customer Focus	Process Management
NPS	1
Employee engagement	0.9306	1
Continuous improvement	−0.2748	−0.2095	1
Customer focus	0.5779	0.5458	−0.3818	1
Process management	0.8757	0.8541	−0.2629	0.4239	1

, there is a strong positive correlation (0.9306) between employee engagement and customer satisfaction (NPS). Process management was also found to have a statistically significant positive correlation with net promoter score (customer satisfaction). The correlation coefficient was found to be 0.8757. Among the independent variables, process management was found to have a statistically significant positive correlation with employee engagement (correlation coefficient of 0.8541). This could be explained by intense involvement of employees during enhancement of processes in the telecom sector.

The findings in

Table 4. Regression analysis.

Source	SS	df	Ms		Number of Obs	60
					F(4, 55)	124.56
Model	926.5647	4	231.6412		Prob > F	0.000
Residual	102.2853	55	1.8597		R-squared	0.9006
					Adj R-squared	0.8934
Total	1028.85	59	17.4381		Root MSE	1.3637
NPS	Coef.	Std. Err. t	t	P > t	[95% Conf.	Interval]
Training hours	0.3168	0.0473	6.7	0.0000	0.2220	0.4117
Number of escalated complaints	−0.0386	0.0693	−0.56	0.5800	−0.1775	0.1003
First-call resolution	0.1440	0.0724	1.99	0.0520	−0.0011	0.2891
Average internet speed	0.1662	0.0454	3.66	0.0010	0.0752	0.2571
_cons	39.4101	7.1594	5.5	0.0000	25.0623	53.7579

indicated an R-squared of 0.9006. This means that the independent variables explain 90.06% of the variation in the dependent variable (customer satisfaction). This basically demonstrates the indispensable value of total quality management and specifically the dimensions of TQM considered in the study in shaping customer satisfaction in the telecom sector. Moving forward, the F statistic was found to have a p value of 0.000. This means that the model is fit. Further, it means that, put together, the TQM dimensions considered in the study were found to have a statistically significant effect on customer satisfaction.

6. Discussion

6.1. Effect of Process Management on Customer Satisfaction

A positive coefficient of 0.1662 and a p-value of 0.001 (lower than 0.05 significance level) indicate that process management has a statistically significant and positive effect on customer satisfaction in the GCC telecommunications sector. This shows that improvements in process management by the telecommunications firms increase customer satisfaction. As a result, this research confirms Hypothesis 1. In essence, an increase in the average internet download speed of up to 100 Mb/s would mean that customers enjoy faster access to online content, quick software updates, and improved online experience when accessing webpages, videos, or images. Additionally, increase in download speeds would improve the streaming quality of video content without buffering, and thus provide a more enjoyable viewing experience and greater satisfaction with telecommunications services. Accordingly, improvement in the processes by telecommunications firms would improve customers’ experience as well as their satisfaction. In line with these findings, previous research has shown that improvement in process management has a significant and positive influence on customer satisfaction [12,13,23]. Accordingly, well-managed processes that are designed to meet or exceed customer expectations result in improved service quality, which positively influences customer satisfaction.

6.2. Effect of Customer Focus on Customer Satisfaction

A positive coefficient of 0.1440 and a p value of 0.0520 at a 5% significance level indicate that customer focus has no statistically significant effect on customer satisfaction in the GCC telecommunications sector. The p value is higher than the 5% significance level (0.05). This means that an increase in customer focus practices by the telecommunications firms will not necessarily result in a statistically significant rise in customer satisfaction. Accordingly, this research does not confirm Hypothesis 2. However, it cannot be discounted that when customer service calls are resolved at initial contact without calling for further follow-ups, it leads to immense customer satisfaction. This builds trust and loyalty to the brand. When customer service calls are not resolved on time, the customers may shift to other brands that they deem responsive. The findings of the study corroborated those of [29,30], which indicated that while customer focus is pertinent in shaping satisfaction and loyalty, it has no statistically significant implication on customer satisfaction. The studies indicate that it takes more than customer focus to enhance loyalty and satisfaction. Specifically, they emphasize leadership competence, organizational culture, and employee engagement as other pertinent drivers of customer satisfaction.

These study findings, however, dissented with a number of others, which have established that customer focus has a statistically significant and positive impact on customer satisfaction [2,13,27]. Based on these studies, improvement in customer focus helped the firms to be knowledgeable about customer requirements and thus demonstrate responsiveness to customer’s needs. Accordingly, customer focus ensures that firms obtain information and maintain close relationships with customers so that their needs are understood and expectations met.

6.3. Effect of Continuous Improvement Practices on Customer Satisfaction

A negative coefficient of 0.0386 and a p value of 0.58 at a 0.05 significance level show that continuous improvement practices have no statistically significant effect on customer satisfaction in the GCC telecommunications sector. The p value is higher than the 5% significance level. This means that increasing continuous improvement practices by the telecommunications firms do not significantly influence consumer satisfaction. Consequently, this research does not confirm Hypothesis 3. This study finding is consistent with [50], which found no significant association between continuous improvement and customer satisfaction for students in the University of Sultan Zainal Abidin, Malaysia. This was attributed to misalignment with student needs and lack of students’ involvement when improving library books and services. However, these findings contradict the majority of research studies, which have established a positive and significant influence of continuous improvement practices on customer satisfaction [33,34,51].

6.4. Effect of Employees’ Engagement on Customer Satisfaction

With a positive coefficient of 0.3168 and a p value of 0.000 at 5% significance level, the findings indicate that employee engagement has a statistically significant positive effect on customer satisfaction. The p value is lower than the 5% significance level. Enhanced employee engagement is pertinent in that it fosters productivity and innovation emanating from skills development. Through training, the employees are able to gain in-depth knowledge about telecommunications products and services and thus are able to work on modalities of enhancing systems, processes, and procedures aimed to improve service delivery to the customers. Furthermore, training the employees has a positive effect on their attitude and confidence. This inspires them to offer amicable solutions to fix the gaps that could be causing dissatisfaction among customers. Overall, the findings indicate that employee engagement has a positive effect on customer satisfaction. Therefore, this research confirms Hypothesis 4. These findings corroborate [37], which found that employee engagement through capacity-based projects and training opportunities significantly increases employees’ satisfaction/productivity and that this ultimately translates into enhanced customer satisfaction. Other studies by [51,52,53] established a positive significant relationship between employee engagement and customer satisfaction. However, these findings differ with [23], which argued that a human resource focus as a component of employee engagement has an insignificant impact on customer satisfaction. Additionally, [11] highlighted that employee empowerment was not significantly related to consumer satisfaction, owing to ineffective training methods that did not focus on product and service delivery to customers.

7. Implications

7.1. Practical Implications

The findings of this study offer several practical implications for telecom companies within the GCC region, as follows:

• The significant positive impact of employee engagement on customer satisfaction suggests that telecom firms should invest more in employee training and development programs. By enhancing employees’ skills and knowledge about telecommunications products and services, companies can improve their service delivery, thereby increasing customer satisfaction.
• The positive effect of process management on customer satisfaction highlights the importance of optimizing business processes. Telecom firms should focus on improving their internet download speeds and other service quality metrics to provide a better customer experience. Implementing advanced process management techniques can lead to faster and more reliable services, which are crucial for maintaining customer satisfaction in a highly competitive market.
• The role of customer focus, though not statistically significant, should not be underestimated. Companies need to continue investing in understanding customer needs and preferences through effective CRM systems and feedback mechanisms. This investment will help firms tailor their services to meet customer expectations more accurately, thereby fostering customer loyalty and satisfaction.

7.2. Theoretical Implications

This study also contributes to the theoretical understanding of Total Quality Management (TQM) practices and their relationship with customer satisfaction in the telecommunications sector. The significant positive effects of employee engagement and process management on customer satisfaction align with existing theories that emphasize the importance of human resource practices and efficient process management in achieving high service quality. These findings support the theoretical framework that links employee empowerment and continuous process optimization to improved organizational performance and customer satisfaction. The lack of statistically significant impact of continuous improvement practices and customer focus on customer satisfaction challenges some existing theoretical assumptions. This suggests that while these practices are important, their effectiveness may be contingent on other factors such as organizational culture, leadership competence, and the specific context of the telecommunications industry in the GCC region. Future research should explore these moderating factors to provide a more nuanced understanding of the conditions under which continuous improvement and customer focus contribute to customer satisfaction. This study extends the literature by providing empirical evidence from the GCC telecommunications sector, highlighting the unique challenges and opportunities in this region.

8. Conclusions, Limitations, and Future Directions

8.1. Research Conclusion

This study reveals several key findings regarding the impact of various factors on customer satisfaction in the telecommunications sector. Employee engagement significantly enhances customer satisfaction by boosting productivity, creativity, and innovation, ultimately leading to improved service delivery. Additionally, efficient process management, as indicated by average internet download speed, positively influences customer satisfaction by ensuring stable networks and faster download speeds, highlighting the need for continuous employee training on process optimization. Although continuous improvement practices were found to have no direct statistical effect on customer satisfaction, their role in maintaining competitive services and locking in customers cannot be ignored. Firms must consistently identify and address areas needing improvement to stay ahead of rivals. Furthermore, while customer focus did not show a statistically significant impact on customer satisfaction, it remains crucial in a highly competitive and sensitive market. Investments in customer research and development ensure that firms meet customer needs effectively. To enhance customer satisfaction further, telecommunications companies should invest in advanced customer relationship management (CRM) systems powered by data analytics and AI for personalized service and proactive issue resolution. Prioritizing employee engagement through regular training on technological advancements equips staff to handle complex inquiries better. Additionally, implementing effective feedback loops to capture real-time customer feedback can inform continuous improvement efforts, ensuring that services are consistently refined based on customer input.

8.2. Limitations and Future Directions

Despite its insightful findings, this study has several limitations. Firstly, the research relies on secondary data from three telecom firms within the GCC region, which may not fully capture the diversity of practices and outcomes across different companies and countries. Future research should consider including a broader range of firms and more primary data to validate the findings further. Secondly, the data span from 2019 to 2023, a period marked by significant global events such as the COVID-19 pandemic. These events might have uniquely influenced customer satisfaction and TQM practices in ways atypical of normal operational conditions. Longitudinal studies covering more extended periods could provide a more comprehensive understanding of these relationships. Lastly, the study’s focus on the GCC region means that the findings may not be generalizable to telecom firms in other regions with different market dynamics and customer expectations. Comparative studies involving telecom firms from various geographical locations could offer more generalized insights into the impact of TQM practices on customer satisfaction.