The Effects of Digital Technology Adoption, Total Quality Management Practices, and Organisational Performance in the Sri Lankan Telecommunication Industry: The Mediating Role of Customer Satisfaction

Abstract

This study investigates the critical issue of high customer complaint rates in the Sri Lankan telecommunications sector. It examines the relationships between Digital Technologies (DT) adoption, Total Quality Management (TQM) practices, and organisational performance with customer satisfaction as a mediating variable in the Sri Lankan telecom sector. It aims to bridge existing research gaps by examining this relationship. Using an explanatory, quantitative research design with a deductive approach, primary data were collected via a structured questionnaire from 248 telecommunications engineers, a key stakeholder group responsible for service quality and technology implementation. The data were analysed using Structural Equation Modelling (SEM) to test the direct effects of Digital Technology and TQM practices on organisational performance, with customer satisfaction as a mediator. The results indicate that both Digital Technology adoption and TQM practices have significant positive relationships with organisational performance. Furthermore, customer satisfaction was identified as a significant mediator in these relationships, underscoring its pivotal role. These findings align with established theoretical and empirical research. This study contributes empirical evidence on the separate relationships of DT adoption and TQM practices with organisational performance and the mediating role of customer satisfaction in the Sri Lankan telecom settings. It provides managers and policymakers with valuable insights, demonstrating that telecom companies can enhance performance by leveraging digital tools alongside quality management practices. The findings highlight customer satisfaction as an important mechanism through which DT adoption and TQM practices are associated with organisational performance.