Optimizing Strategic Transformation with EFQM Model: A Contingency Theory Perspective

Abstract

Background: The EFQM Model, launched by the European Foundation for Quality Management (EFQM), is widely adopted by transforming organizations. Conducting research with an academic perspective on these models is crucial to comprehend their potential fully. While Contingency Theory has not yet gained widespread recognition for this purpose, it can play a fundamental role in shaping organizations' transformational domains. Objectives: To evaluate the feasibility of the EFQM Model in transformation by integrating theoretical concepts with practical applications across the Environment, Size, Technology, and Strategy domains while minimizing ESG risks. Methods/Approach: Quantitative analysis, employing Linear Programming (LP), is utilized to explore the interaction between 25 sub-criteria derived from EFQM and contingency theory, with data from 50 participants being analysed using operational research-based LP optimization and sensitivity analysis. Results:  The EFQM Model showcases feasibility in managing ESG risks and driving transformations with above-average success rates in the case study. Notably, the "Size" transformation domain plays a vital role in strategic transformations, alongside other sub-criteria, as indicated by various sensitivity analyses. Conclusions: The EFQM criteria' methodological approach closely aligns with the transformation perspective of contingency theory, holding potential to enhance future business system research.