Effects Of Total Quality Management On Pharmaceutical Distribution Performance: The Case Of Wholesale Business In Addis Ababa
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Date
2017-08-08
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Addis Ababa University
Abstract
TQM becomes a strategic imperative for economic organizations to address the management
of the distribution function in general and to device a channel strategy which gains them
access, coverage, representation in the market place. Accordingly, this paper studied how
TQM principles affect distribution performance in terms of effective delivery and customers’
satisfaction in supply chain of Addis Ababa distribution centers. Using multivariate analysis,
this study found that TQM principles have positive effect on pharmaceutical distribution
performance. Predominantly, it was found that leadership (Sig - .002: p<0.05; ß=.141),
customer focus (Sig - .005: p<0.05; ß=0.085), process approach (Sig - .001: p<0.05; ß=.322),
continual improvement (Sig - .00001: p<0.05; ß=.383), mutually beneficial supplier relations
(Sig - .0034: p<0.05; ß=.010) and people involvement (Sig - .004: p<0.05; ß=.011) have a
significant effect on distribution performance. But systematic approach to management (Sign
- .0562: p>0.05), factual approach to decision making (Sig - .579: p<0.05) have insignificant
effect on distribution performance. The results provide managers with evidence supporting the
value of distribution effectiveness and the importance of customer-oriented service in a
logistical setting. Emphasis should be put on the incorporation of all the principles of TQM for
the success of the distribution performance of the organization. The role of leadership,
employee participation, customer focus, supplier quality management, continual improvement,
and organizational culture are apparent for the success of the firm in terms of effective
delivery, cost reduction, market share, productivity, profitability and overall business
performance
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Keywords
economic organizations, performance, market