The effect of total quality management practices on quality performance: The case of Ethiopia leather industry
Keywords:
Total quality management (TQM), Effectiveness of the firm (EF), Customer satisfaction (CS), ordered logistic regression, critical success factors.Abstract
This study is intended to identify The Effect of Total Quality Management Practices on Quality Performance: The Case of Ethiopia Leather Industry (ELICO). Previous empirical studies revealed that successful implementation of Total Quality Management benefited organization through improving organizational performance in many dimensions. However, there is a lack of study on the effect of total quality management on quality performance in Ethiopia as well as globally which in turn result knowledge gap. Therefore, this study aims to bridge this gap in literature and knowledge. The study employs an explanatory and descriptive research design and uses quantitative and qualitative approach. A survey is conducted by using structured close-end questionnaires and interview questions. 86 employees have participated, and 75 questionnaires were collected. Descriptive and ordered logistic regression statistical tools were used to examine the relationship between Total Quality Management practices and quality Performance. The result of this study revealed that there is positive and significant relationship between Total Quality Management and overall quality performance and among Total Quality Management Practices, Information analysis, Top management commitment and employee encouragement have a positive coefficient with significant p value. Training and education resulted with negative coefficient but with significant P-value at 1%, 5%, 10%, level. The result implies that among the eight TQM dimensions TMC, IAS, EE and TE have an impact on Overall quality performance and are revealed to be best predictors to explain the overall quality Performance. Thus, this study recommended that managers of ELICO have to give more attention in their managerial activities to effective implementation of TQM practices to successful quality performance for higher levels of customer satisfaction in their industry.
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