Critical success factors for TQM implementation and their impact on performance of SMEs

Abstract

Purpose: The purpose of this paper is to identify the critical success factors of TQM implementation, to evaluate their impact on the primary measures as expressed by the operational performance and the secondary measures as expressed by the organizational performance, and to find out the effect of the operational performance on the organizational performance of small and medium‐sized enterprises (SMEs) in the Qatari industrial sector using the structured equation modeling (SEM) approach. Design/methodology/approach: A questionnaire was designed and distributed to 297 SMEs in the Qatari industrial sector. Of the 297 questionnaires posted, a total of 139 were returned and were used to test the theoretical model. In particular, hypotheses were developed to evaluate the impact of TQM implementation on the operational and organizational performance of the SMEs. Findings: The empirical analysis demonstrates several key findings: data analysis reveals that there is a substantial positive effect of the TQM implementation on both the operational and the organizational performance. The findings confirm the significant relationship between operational and organizational performances of the SMEs. Overall, the results showed the central role of the strategic factors in the successful implementation of the TQM programs within the SMEs. Research limitations/implications: The research is subject to the normal limitations of survey research. The study is using perceptual data provided by production managers or quality managers which may not provide clear measures of performance. However, this can be overcome using multiple methods to collect data in future studies. Interestingly, the findings here may be generalisable outside Qatar, i.e. a similar country to Qatar such as the GCC countries. Practical implications: Qatari SMEs should consider TQM as an innovative tool for improving operational and organizational performance in today's dynamic manufacturing environment. The findings suggest the notion that the TQM critical success factors (CSFs) should be implemented holistically rather than on a piecemeal basis to get the full potential of the TQM. Moreover, the study emphasizes the need to link operational performance to organizational performance to achieve the success of TQM implementation. Originality/value: The study integrates the CSFs of TQM practices, i.e. strategic, tactical and operational factors, with operational and organizational performances as related drivers of the effectiveness and success of TQM practices in the SMEs. Very few studies have been performed to investigate and understand this issue. Therefore, the research can make a useful contribution.