Direct and indirect impact of quality management on the integrated performance of medium-scale manufacturers

Abstract

PurposeMost studies on small and medium scale enterprises lump both small-scale and medium-scale businesses together as entirely similar phenomenon, thus creating an oversight of the degree of performance recorded by medium-scale businesses. In line with investigating medium-scale firms' performance, this study examines the role of quality management in the performance of medium-scale firms to evolve research-based recommendation for better performance.Design/methodology/approachCross-sectional survey design and random sampling were employed. Analysis was based on 915 responses obtained via questionnaire copy distribution from employees within the supply chain, production, operations, and marketing/sales department of selected firms. Hypotheses testing was done using the structural equation model.FindingsA positive significant relationship between quality management and operational performance, employee performance, and quality performance dimensions was identified. An insignificant relationship between quality management and financial and innovation performance dimensions was discovered. However, when mediated by employee focus and process management, significant relationships were observed among all performance dimensions.Research limitations/implicationsThe study reveals that employee focus and process management have the greatest mediating impact on the relationship between quality management and the organisational performance of medium-scale manufacturing firms. This study charts the course for other studies to investigate the mediating role of quality management practices on the relationship between quality management and the organisational performance of medium-scale firms in other developing nations. The manufacturing sector has thirteen industries, but only six were captured in this study. This poses a limitation to the generalisation of the findings of this study. Further studies could strive for a representation of every manufacturing industry to aid generalisation purposes.Practical implicationsManagers of medium-scale manufacturing firms must understand that it might be impossible to get a one size fits all approach to improving performance dimensions. Managers are advised to choose one or two performance dimensions as the goal, then focus on achieving them. This will help clarify which path is best to get the desired results and maximise their quality management system.Originality/valueThis study examines the impact of quality management practices on an integrated performance model of medium-scale firms. The study also uniquely examines the mediating impact of exclusive quality management practices on the relationship between quality management and an integrated performance model.