Impact of Total Quality Management & Human Capital on Organizational Performance in Pakistani Higher Education Institutions: A Mediating Role of Sustainability

Abstract

This study examines the impact of total quality management and human capital on the organizational performance of public and private sector higher education institutions in Karachi, Sindh, Pakistan, with the mediating role of sustainability. The research used a quantitative, cross-sectional study design. The data were collected through a structured survey from 308 respondents who were senior- and mid-level academic and administrative personnel in public and private sector higher education institutions in Pakistan. The study adopted a multistage sampling approach that combined purposive and stratified non-probability techniques to ensure valid and relevant responses. The data were analyzed using SPSS for descriptive analysis and SmartPLS 4 with partial least squares structural equation modeling (PLS-SEM). The measurement and structural models were assessed, revealing that TQM and human capital have a strong positive impact on sustainability, while sustainability similarly affects organizational performance. Moreover, mediation analysis confirms that sustainability partially mediates the relationship between total quality management and human capital and organizational performance. The present study contributes theoretically by establishing an integrated framework connecting total quality management, human capital, sustainability, and organizational performance. From a practical viewpoint, stakeholders may use the study's insights to strengthen standards, while HEI administrators can prioritize human development, continuous quality improvement, and sustainability to enhance long-term effectiveness.