Total Quality Management (TQM) Implementation and Competitive Advantage in Selected Manufacturing Firms: The Mediating Role of Organizational Culture
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Date
2021-04
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A.A.U
Abstract
The objective of this study was to assess the mediating role of organizational culture on the relationship between total quality management (TQM) implementation and competitive advantage in selected manufacturing firms. Previous empirical studies revealed that successful implementation of Total Quality Management practices benefited firms through improving organizational performance in many dimensions like improving product quality, customer satisfaction, lowering production cost, improving operational performance. However, to the researcher best of knowledge, there was no study that showed the mediating role of organizational culture in the relationship between Total Quality Management Practices and Competitive Advantage in manufacturing firms in Ethiopia as well as globally which in turn resulted knowledge gap. Therefore, this study aimed to bridge this gap in literature and knowledge .A total of 122 questionnaires were distributed to managers and supervisors from selected manufacturing firms. From the distributed questioners 98(80.3%) were collected and used in the data analysis. Likert scales were used for data collection which contains TQM implementation, organizational culture and competitive advantage questionnaires and to achieve the objective of the research the Structural Equation Model factor analysis called exploratory factor analysis was applied to reduce not producing useful factors. Internal consistency measure such as Cronbach alpha reliability, composite reliability, Discriminant validity, convergence validity, collinearly diagnostic, model fit and indices has adequately deal with. The result revealed that there is a significant correlation between TQM implementation, organizational culture and competitive advantage. The mediation analysis result of the study also shows that organizational culture partially (Complementary) mediates the relationship between TQM implementation and competitive advantage. Regulatory bodies and managers of the manufacturing firms should give emphasis on development of strong organizational culture while implementing TQM practices so that the firms’ competitive advantage would be assured.
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Keywords
Total quality management , Organizational Culture