The effect of TQM practices on operational performance: an empirical analysis of ISO 9001: 2008 certified manufacturing organizations in Ethiopia

Abstract

PurposeThis study is aimed at examining the effect of Total Quality Management (TQM) practices on the operational performance of ISO 9001:2008 certified manufacturing companies in Ethiopia.Design/methodology/approachA cross-sectional survey was conducted to meet the purpose. Primary data was collected from the managers and senior experts working under the production and quality management units of the surveyed firms. Data was obtained from a survey of 302 participants found in 73 ISO 9001:2008 certified manufacturing organizations. Both EFA and CFA were applied to validate and confirm the instrument, and Structural Equation Modeling (SEM) was used to test the hypotheses.FindingsThe results revealed that among the practices of TQM used in the model only supplier quality management, continuous improvement and process management were found to have significant and positive effect on the operational performance of the ISO 9001:2008 certified manufacturing organizations in Ethiopia.Research limitations/implicationsFuture studies are suggested to consider some contextual variables such as firm age, scope of operation, firm size and firm strategy while addressing the objective.Practical implicationsThe study will encourage managers of manufacturing companies in Ethiopia to utilize a reliable and valid framework of TQM practices for better operational performance results.Originality/valueThe fact that Ethiopian manufacturing organizations are required to improve their product's quality in order to improve their productivity and enhance their competitiveness in a global market is the rationale of this study. Even though several studies have evolved to scrutinize the link between TQM and operational performance across the world, nearly nothing, is known about this linkage in Ethiopia. Thus, the study represents one of the first attempts to empirically investigate this linkage in Ethiopian context.