The impact of TQM implementation on the organizational performance of Iranian manufacturing SMEs

TLDR

Quality management research in developing countries lacks a comprehensive analysis of TQM practices and organizational performance in Iranian manufacturing SMEs. This study develops reliable TQM constructs and a measurement instrument for Iranian manufacturing SMEs and tests the effects of seven TQM criteria on their organizational performance. A questionnaire was distributed to quality managers of 65 Iranian manufacturing SMEs, achieving an 81.5 % response rate, and hypotheses were formulated to assess the impact of TQM implementation. Statistical analysis revealed significant relationships between TQM practices and performance, with leadership emerging as a key driver, while obstacles remain in applying tools/techniques and supplier criteria. The study is limited to a single region and relies on subjective manager reports; future research should include diverse regions, sectors, and objective performance metrics.

Abstract

Purpose The purpose of this study is to provide reliable and valid constructs of total quality management (TQM) and a measurement instrument in the context of Iranian manufacturing small to medium‐ sized enterprises (SMEs) and to examine the effects of these seven TQM criteria, namely: leadership, process management, supplier, customer focus, employee management, communication and quality information system (QIS) and tools and techniques on the organizational performance of the Iranian manufacturing SMEs. Design/methodology/approach In order to search the impact of TQM practices on Iranian manufacturing SMEs a questionnaire was developed and distributed to quality managers of 65 Iranian manufacturing SMEs, resulting in a response rate of 81.5 percent. In particular, hypotheses were developed to evaluate the impact of TQM implementation on the organizational performance of the manufacturing SMEs. Findings Statistical analysis revealed that a number of significant relationships between TQM practices and organizational performance of the manufacturing SMEs. The result found that leadership plays an important role in enhancing organizational performance of the Iranian manufacturing SMEs; however, these organizations encounter some obstacles in fully utilizing some TQM criteria, namely tools and techniques and suppliers. Research limitations/implications The sample is restricted to only a single region and manufacturing, so it would be strongly recommended that data be gathered from various parts of Iran including both manufacturing and service industries. As the data in this study were collected from top managers of organizations on the basis of their subjective evaluations, objective performance indicators should also be employed in the analysis. Originality/value This study has the potential to enhance the understanding of TQM practices impact on organizational performance of the Iranian manufacturing SMEs amongst researches and practitioners. Also the research adds knowledge in the field of quality management within the context of developing countries and gives a particular focus on the Iran manufacturing SMEs; as a review of literature, has identified no studies that have undertaken a comprehensive analysis of TQM practices and organizational performance of manufacturing SMEs in the Iranian context.