The moderating impacts of business planning and firm size on total quality management practices

Abstract

Total quality management (TQM) research has concentrated on large firms. Little has been done on the TQM practices of small‐ and medium‐sized enterprises (SMEs), particularly in developing countries. This paper investigates the relationship between TQM, planning behavior and firm size by reviewing existing literature and collecting primary data from 54 SMEs in the Republic of Botswana. The findings indicated that the majority of SMEs understand the importance of both TQM and planning activities for their survival and growth. However, their approach to both is unsystematic, non‐formal and short‐term oriented. Both firm size and planning behavior are found to have statistically significant relationships with TQM practices. As firm size increases from small to medium, and as SMEs move from operational to strategic planning, they attach greater degree of importance to TQM practices. However, the planning behavior of SMEs is more strongly related to TQM practices than firm size. Suggests the promotion of business planning as a prerequisite to the adoption of formalized TQM practices. Some implications for SMEs are also forwarded.