Examaning the impact of Total Quality Management on Performance Improvement through Value Chain and Innovation in Providing Banking Services (Case Study: Semnan and Mazandaran Province Cooperative Development Bank)

The sharp increase in customer expectations in competitive global financial markets has compelled banks to continuously seek financial innovations and improve the quality of their services. Today, global competition and changing markets, along with new technologies, have created ways to generate value in terms of quality. Organizations and banks need innovation for business success and survival, and the need for innovation and performance improvement is one of the reasons for implementing Total Quality Management (TQM). The intense competition in these markets has forced organizations to attract customers by reducing costs and increasing quality. In this context, the implementation of TQM has emerged as an effective solution to meet these expectations. This research, titled "Examining the Impact of Total Quality Management (TQM) on Performance Improvement through the Value Chain and Innovation in Banking Services," focuses on the employees of the Cooperative Development Bank in the provinces of Semnan and Mazandaran. The sample size for this study, determined using the Partial Least Squares method, is 220 individuals.The research data was collected using a questionnaire, which was validated through two criteria: Cronbach's alpha and composite reliability for various dimensions. The data was analyzed using one-way ANOVA and Partial Least Squares (PLS) in structural equation modeling to test the hypotheses, utilizing SPSS and SMART PLS software. The hypothesis tests at a 95% confidence level indicated that Total Quality Management (TQM) has a significant impact on innovation (p < 0.05), innovation significantly affects financial performance (p < 0.05), and Total Quality Management (TQM) influences financial performance through innovation and the value chain (p < 0.05).