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2.7 Hypothesis Development

2.7.2 Total Quality Management and Performance

enterprises (SMEs) in Botswana using a descriptive statistic. According to the results, environmental scanning has a tangential connection with TQM methods and serves as a moderating factor in this relationship.

Psomas and Jaca (2016) conducted a research of 273 Spanish businesses, and they utilised quality managers as samples in the study. The findings of the causative analysis show that the degree to which overall quality management ideas are adopted may be predicted using dynamism, generosity, and complexity. Cetindere et al. (2015) conducted research in Australia to investigate quality management elements, including performance, contextual factors, and dimensions. Interviews were used as the technique of data collection, and descriptive statistics and analysis of variance were used in the analysis of the gathered information (ANOVA). According to the findings of this empirical study, the implementation of quality management systems in organisations located in Queensland places a greater emphasis on the aspects of measurement and training, whereas the improvement of processes is considered to be of greater significance for manufacturing companies. In spite of the limited degree to which quality management concepts were put into practise, a significant number of links were found between various areas of quality management. In place of PLS, other statistical methods such as ANOVA, multiple regression, and correlations were used in the study that was presented earlier. In a similar vein, the most bulk of the research was carried out in China and Australia; however, this particular study was carried out in Africa, more especially in Nigeria.

Khan and Naeem (2018) conducted research in 194 Australian companies to explore whether or not there is a correlation between TQM practises and organisational

performance. Through the use of structural equation modelling, the responses from a random poll of one thousand managers were analysed. The outcomes of the poll indicated that TQM and OP had a strong relationship that worked in their favour.

Cetindere et al. (2015) carried out an empirical survey of managers in Australia and analysed the resulting data via the lenses of descriptive statistics, correlation, and regression. The findings provide support for the hypothesis that there is a connection between quality management and the performance of organisations. Bakar et al. (2015) looked at the relationship between quality implementations and the organisational performance of small and medium-sized enterprises (SMEs) working in the textile sector in Istanbul, Turkey. After collecting 500 answers from individuals using questionnaires that they self-administered, the data were analysed making use of structural equation modelling. Through a questionnaire sent in the mail, we were able to select a sample at random from the database of the Turkish Small Business Administration (KOSBEB). According to the findings of the research, there was a significant positive association between TQM practises and non-financial performance, however there was only a weak relationship between TQM practises and the financial performance of SMEs. Claver-Cortés et al. (2008) conducted research to determine the effect that TQM has on the operational efficiency of Spanish manufacturing and service companies. In order to evaluate the psychometric properties of the measuring scale, a confirmatory factor analysis was carried out. A postal survey was used to gather the data, and structural equation modelling was used to do the analysis on the data once it was acquired. According to the findings of this research, there is a good connection between TQM practise and the performance of organisations.

Schilke et al. (2018) identified the critical success factors for a continuous improvement project in the public sector. According to the findings of the study, CSF is essential in manufacturing companies. Nallusamy (2016) conducted a questionnaire survey to study the essence and technique of Total Quality Management (TQM), as well as its effect on organisational performance. Descriptive statistics were used to assess the findings of the survey. According to the research, there is a significant association between Total Quality Management and the success of Chinese businesses.

The research conducted by Claver-Cortés and colleagues (2008) shown that the adoption of TQM programmes and the allocation of resources are driven by important success indicators. Cetindere et al. (2015) investigated the ways in which critical success variables influenced the adoption of TQM and the performance of SMEs in the Qatari manufacturing sector. Structural Equation Modelling was used in the examination of the data (SEM). A survey questionnaire was sent out to 297 different small and medium-sized businesses (SMEs). According to the results of the research, the implementation of TQM critical success aspects seems to have a significant and favourable influence on the performance of SMEs.

Research was carried out in Pakistan by Claver-Cortés and colleagues (2008) to evaluate the critical success factors of total quality management (TQM) in pharmaceutical wholesale distribution. Descriptive statistics and a twenty-nine-item questionnaire were used to conduct the data analysis. The questionnaire was sent to ninety pharmaceutical distributors using convenience non-probability sampling. In the pharmaceutical distribution business, it was shown that senior management provides strong support for the implementation of TQM. In Spanish organisations, Claver-Cortés et al. (2008) measured the impacts of human resource management (HRM) and

total quality management (TQM). A random sample of 706 businesses was chosen via the use of a cross-sectional research method that was collected from the database of the Spanish Ministry of Science and Technology. According to the results, both HRM and TQM strategies have a beneficial effect on the overall performance of organisations. Cetindere et al. (2015) conducted research to determine how TQM practises affect the performance of SMEs in areas other than financial ones. The sample consisted of sixty small and medium-sized businesses (SMEs) from three of the most prominent cities in Punjab. Some of these businesses had ISO 9000 certification, while others did not. In order to investigate the data, a linear multiple regression analysis was carried out. According to the results, TQM strategies such as supplier association, benchmarking, top management commitment, and customer focus have a positive influence on the performance of SMEs. Arshad and Hughes (2009) conducted a research on one hundred small and medium-sized enterprises (SMEs) operating within the Pakistani service sector by way of the Delphi methodology and the focus interview approach. In a manner that is analogous, Hogan and Coote (2014) conducted an experiment to investigate the influence of TQM on organisational performance. They used management competence as a moderating factor in their research. The research consisted of interviewing a total of 250 managers working for service companies. Methods such as correlation, factor analysis, and hierarchical regression were used for analysing the data. It was found that TQM could accurately forecast the performance of an organisation, but it was found that management skill had no bearing on the connection between TQM practise and the performance of an organisation. Hogan and Coote (2014) evaluated and graded the significant TQM practises in the Indian hospitality sector based on the results of an

email survey that was sent to 34 different healthcare firms. The finding provided evidence that there is a connection between the structures that were looked at.

Yunis, Jung, and Chen (2013) carried out study in order to investigate the connection between TQM and performance. We used a method called convenient sampling to gather information from 650 respondents, all of whom were middle level managers living in the United States, Mexico, Korea, and China. According to the results, TQM has an effect on both soft and hard TQM tactics, both of which may be used to make predictions about performance. In a second piece of research, Jaafreh and Al-Abedallat (2013) investigated the influence that TQM practises have on the overall performance of an organisation. This investigation was carried out in the Jordanian banking industry. A questionnaire was used as the research tool, and multiple regressions were used to analyse the results of the data collection. According to the results, the practise of TQM does have an effect on the performance of the organisation. According to Aliyu, TQM performs a significant moderating role in the OCB-ERP relationship (2015). In addition, Haque et al. (2014) contributed to a better understanding of TQM's application in the Islamic banking sector by identifying matching as well as unique aspects that affect TQM implementation in Bangladeshi and Malaysian SMEs. This was done in order to contribute to a better understanding of TQM's application in the Islamic banking sector. As an appropriate sample approach, a questionnaire survey that respondents were free to conduct to themselves was employed. According to the results, knowledge is the most essential TQM principle among SMEs in Malaysia, but ignorance was found to be the most significant TQM principle among Islamic SMEs in Bangladesh.

Benavides et al. (2014) analysed the results of their study of 141 hotels located in the Andalusian area of Spain. According to the findings of the experts, TQM and performance have a positive association with one another. A cross-sectional study was carried out by Haque et al. (2014) in the industrial zone of Kocaeli Gebze, Turkey. The researchers used a sample of quality association firms for their research. A total of 242 complete questionnaires were collected, which corresponds to a return rate of 48 percent. Research conducted on Turkish companies revealed that the most significant challenges they encounter come from a lack of resources, insufficient organisational structures, and the engagement, awareness, and dedication of their workforce.

Additionally, Waweru and Orodho (2014) investigated the amount of management practise that was used by school administrators. In this particular study, a descriptive correlational research technique was used, and it included both a stratified and a basic random sampling approach. Based on the data, it seems that there is a substantial connection between the design of people and physical resources, organisational strategies, curriculum, leadership, and control measures, as well as the academic accomplishment of workers.

Several academics have conducted research on the connection that exists between TQM methods and the performance of organisations. Molina-Azorn and colleagues (2015) conducted an empirical research with three phases and came to the conclusion that businesses that apply TQM have the ability to achieve a long-term competitive advantage. In a study that included 141 small and medium-sized enterprises (SMEs) in the textile sector in Turkey, it was found that implementing TQM had a considerable influence, both positively and significantly, on SME performance. Waweru and Orodho (2014) conducted research to determine the connections between the

application of TQM and a range of firm performance metrics. These measurements included improvements in employee relations, operational procedures, customer satisfaction, and enhanced profitability. As was to be anticipated, the data provided evidence in favour of the premise of a positive correlation between TQM implementation and all of the analysed business performance metrics. Abubakar and Mahmood (2016) investigated the relationship between total quality management and the performance of organisations by using a sample of 370 Greek businesses that were certified to the ISO 9001:2000 standard. A number of TQM characteristics, such as top management quality practises, staff involvement, customer focus, process and data quality management, as well as quality tools and techniques, were found to increase organisational performance in the study. These were some of the characteristics that were found to increase organisational performance. According to the research that Abubakar and Mahmood (2016) conducted on 193 companies in Turkey, Total Quality Management (TQM) has a significant and positive impact on the financial performance of those companies. In addition to the empirical research that were discussed before, a number of additional studies have come to the conclusion that TQM procedures have a considerable influence, both positively and significantly, on the performance of businesses. The present research, which is in accordance with the explanation that came before it, hypothesises that there is a positive correlation between TQM and the performance of SMEs.

In the field of quality management, the TQM method has been the subject of a significant amount of research that has been carried out over the years. When it comes to the performance implications of TQM strategy, the majority of studies have concluded that applying TQM philosophy would ultimately benefit all different kinds

of organisations. This finding is based on the fact that TQM was developed to improve the quality of manufacturing processes. A large number of researchers, such as Otley D. (2016), have conducted a comprehensive literature review of previously conducted research in order to examine how the TQM method has been studied, analysed, operationally defined, evaluated, and evaluated in terms of its implementation. In their examination of the TQM technique, Otley (2016) used MBNQA and EQA criteria as the foundation for their research. While Cetindere et al. (2015), who reviewed 226 research works linked to quality management literature between 1970 and 1993, came to the conclusion that the majority of the material was conceptual and that the published empirical work was of a poor quality, they found that between 1970 and 1993, there were 226 research works linked to quality management literature. As a consequence of this, he suggested that there should be more empirical research done on the TQM technique. In a similar manner, the researchers have separated the components of TQM into hard quality factors and soft quality variables based on their review of the relevant literature. The hard quality elements could be quantified and linked to the system, tools, and procedures. On the other hand, the soft quality factors, such as top management commitment, customer focus, teamwork, training and empowerment, and good communication, are intangible and rather difficult to directly quantify.

The TQM literature was analysed by Hmieleski et al. (2015) from a fresh viewpoint, with the primary objectives of validating the TQM construct and elucidating its essential characteristics. As a consequence of this, he looked at 20 empirical investigations using the essential aspects of the TQM method as stated by Jaca and Psomas (2015) as the judging framework. This was done in order to draw conclusions.

In conclusion, the creator of the TQM strategy used the following seven variables as the most important components in the approach: 1) Dedication from upper management, 2) Accuracy of Information, 3) Effective Management of Processes, 4) Innovative Product Design, 5) Efficient Work Management, 6) Involvement of Suppliers, and 7) Participation of Customers In an effort to conduct a review of the TQM literature associated with the relationship between TQM strategy and organisational performance, Cetindere et al. (2015) conducted an analysis of 15 publications. These publications indicated both positive and negative links between the TQM strategy and the performance of organisations. It was established that there was a connection between the publications that were analysed and the studies that were conducted in different countries looking at the link between TQM strategy and organisational performance.

Although some of these studies discovered a beneficial connection, others discovered a detrimental one. The study came to the additional conclusion that the failure of TQM initiatives can be attributed to the partial implementation of TQM strategy. The study also came to the conclusion that in order for an organisation to improve its performance and achieve a competitive advantage, TQM strategy should be fully implemented and integrated into its operations. In a similar vein, Nallusamy (2016) conducted an exhaustive review of the previous research on quality management. The author looked at a total of 347 articles that were published between the years 1989 and 2000 in a range of different magazines. Throughout the course of their investigation, they came up with 25 essential criteria for TQM, which served as the basis for their study framework. The outcomes of this survey indicate that paying attention to, and making the satisfaction of, customers was the topic that was brought up in conversation the

most often, followed by the dedication of top management, then staff training and leadership. The next item on the agenda was effective collaboration, which was then followed by employee involvement, ongoing improvement, and new product development. The third and last significant aspect of TQM stated in the literature that this research examined was quality information and performance evaluation. In addition, they said that since services are intangible, quality control in the service business may seem to be more difficult than in other industries. As a consequence of this, they called for the creation and testing of a complete questionnaire and framework that takes into account all of the fundamental components of TQM and is adapted to meet the requirements of service firms. They also suggested that future TQM research should focus more on specific aspects of TQM that have received less attention in the past. Some of these aspects include strategic planning, product and service design, communication, social responsibility, employee evaluations, incentives, and recognition. Surprisingly, just six research projects were carried out in the Middle East, which includes countries such as Saudi Arabia, the United Arab Emirates, and Qatar.

This represents about 1.7 percent of the 347 research articles that were evaluated for this study. In his review of TQM studies published between 1987 and 2002, Baker (2003) said that the impact of TQM processes on organisational performance has been empirically demonstrated. As was said before, companies in the manufacturing sector were the pioneers in establishing and implementing TQM systems, whereas service-oriented organisations lagged far behind. Additionally, in the globally competitive business arena, the implementation of TQM in the service sector has been rapidly growing over the last few years.

Yunis et al. (2017) identified nine critical TQM indicators after conducting a literature analysis on total quality management (TQM). These nine factors are as follows: a customer-based approach, which is the most important factor; management commitment and leadership; quality planning; management based on facts;

management based on facts; continuous improvement; human resource management, which includes training, work teams, and communication; supplier cooperation; and finally, issues related to organisational, social, and environmental awareness. The authors also highlighted that research has demonstrated a considerable association between TQM and HRM, with the latter providing as the basis for the success of the former.

Regarding this topic, Yusr et al. (2017) made an effort to explore the connection between TQM implementation and the performance of innovative ideas. According to the authors, the adoption of TQM will be impacted not only by the environment in which the company works but also by the strategy that is put into place by the organisation. After doing extensive study into the published material pertaining to the connection between TQM and innovation, he proceeded to discriminate between two assertions on the basis of his results. The first hypothesis proposes that TQM fosters an environment that is receptive to creative thought, and that it also has a positive correlation with innovative thinking and, finally, performance. Others, on the other hand, contended that putting TQM concepts into practise may restrict the creative potential of an organisation. The mediating function of TQM has been investigated by a large number of scholars. Xing et al. (2019), for instance, investigated the connection that exists between performance, organisational strategy, and environmental variables.

Data was collected from 273 Spanish enterprises at the level of quality managers by

Xing et al. (2019). In order to validate the methodology, they used a casual model in conjunction with structural equation modelling. They came to the conclusion that the environment has an effect on the adoption of TQM, which in turn has an effect on the financial, operational, and human elements of the performance of the organisation.

Small and medium-sized businesses (SMEs), which have a significant presence in both developed and developing nations, are frequently regarded as the lifeblood of the contemporary global economy. This view is supported by the fact that SMEs account for 99.7 percent of all businesses in the United States. As a consequence of this, there has been a rise in the number of study works that are associated to TQM in SMEs.

These studies indicate that TQM approaches, when adopted, may aid small and medium-sized businesses in becoming more efficient and market-focused. TQM may also aid small and medium-sized enterprises (SMEs) in making full use of the skills of their people resources, so enhancing their competitiveness and, as a consequence, attaining a better strategic position in a market that is prone to volatility.

According to a review of the current literature on TQM practises, the emphasis of the relevant research has been placed on the application of TQM in large manufacturing organisations. On the other hand, the application of TQM in small and medium-sized manufacturing organisations has received very little attention. To put it another way, there hasn't been a lot of research done on how the implementation of TQM methods affects the efficiency of smaller businesses. The purpose of the two case studies was to investigate the current state of TQM implementation, determine what the obstacles to TQM adoption are as well as the critical success factors for TQM adoption, and report on the differences in performance that exist between SMEs based on their level of dedication to TQM methods.

The bulk of the study that has been done on TQM in small and medium-sized enterprises (SMEs) has been on identifying the crucial aspects of TQM. Molina-Azorn et al. (2015) used descriptive statistics to evaluate the data obtained from 52 small and medium-sized enterprises (SMEs) in Ethiopia in order to investigate the relationship between TQM perceptions, behaviour planning, and the size of the business. On the basis of their analysis of previously conducted research, they made an effort to concentrate their efforts on particular important and influential aspects of the TQM construct. As a direct consequence of this, the authors were able to identify eight critical TQM factors. These factors are as follows: managerial leadership and commitment, customer satisfaction, continuous improvement, employee empowerment and involvement, supplier partnership, quality culture and philosophy, measurement and feedback, and employee empowerment and involvement. Their results provided further evidence that past study on the key obstacles to the deployment of TQM was correct. The key obstacles that prevent small and medium-sized enterprises (SMEs) from adopting total quality management are their emphasis on short-term profitability, their lack of resources, their lack of business planning tools, and their hazy vision. In addition, their findings suggested that the necessity of implementing and embracing a TQM strategy increased proportionally with the size and long-term orientation of a small and medium-sized enterprise (SME). The authors of the study used the MBNQA factors as variables in their study, which was based on the data collected from 116 SMEs in Ghana that were involved in a variety of different industries. This was done so that they could evaluate the relationship between TQM practises and the performance of SMEs. They came to the conclusion that there are positive significant relationships between the seven management practises that were used in the study, namely leadership, strategic planning, information and analysis,

human resource management, customer and market focus, quality process management, and business results and SME performance, based on their analysis and hypotheses testing procedures. These management practises include: leadership, strategic planning, information and analysis, human resource management, customer and market focus, quality process management, and business results. More importantly, the findings of the research revealed that the most significant positive correlation was found between effective management of human resources and the achievements of small and medium-sized businesses (SMEs).

In a different study, Salaheldin (2009) examined the quality management practises of 139 Qatari small and medium-sized enterprises (SMEs), and he separated the TQM main factors into strategic, tactical, and operational components. Tactical variables are those that apply to employees and suppliers, while strategic elements are those that pertain to top management practises and support. On the other side, operational elements include things like goods, resources, and customers, among other stakeholders. Nevertheless, the results of the research showed that the TQM aspects had a significant influence on the operational and organisational performance of the SMEs. In addition, the research shed light on how important strategic considerations are to the successful implementation of TQM in small and medium-sized enterprises (SMEs).

As part of their contribution to the body of research on TQM in small and medium-sized enterprises (SMEs), Waweru and Orodho (2014) carried out an empirical study on 163 SMEs located in Turkey. The purpose of the study was to identify TQM important elements and investigate their links with organisational performance.

Through exploratory factor analysis, they were able to identify seven crucial components: quality data and reporting, top management role, employee interactions, supplier quality management, training, quality policy, and process management. In spite of the fact that their studies indicated the presence of a large positive link between TQM fundamental factors and the non-financial performance of SMEs, they also demonstrated that the relationship between TQM and financial performance is only a moderate one. The authors also proved that non-financial performance might act as a buffer between TQM approaches and the financial performance of SMEs. This was one of the main contributions of the study.

The research into the relationship between TQM elements and organisational performance in SMEs is still in its early stages, despite the increased interest in studying the impact of TQM elements on organisational performance. However, the authors used data obtained from 62 Australian SMEs in an earlier attempt to explore the association between TQM practises and the organisational performance of SMEs.

The framework for this attempt was the Australian Quality Award. They made an effort to evaluate the effects that the TQM elements had on a variety of performance metrics, such as the quality of the products and services offered, the timeliness of delivery, the cost of manufacturing, and the flexibility of delivery. According to the findings of their studies, the procedures for strategy, policy, and planning, as well as information analysis and people management, were unaffected by the results. On the other hand, the findings demonstrated that leadership practises place a greater emphasis on the quality of products and services offered as opposed to the flexibility of delivery.

When investigating the connection between TQM and performance, there has been a prevalent trend in the relevant body of research literature to classify elements of TQM as either hard or soft aspects. Within the context of the Australian business environment, Waweru and Orodho (2014) made an effort to investigate the connection between hard and soft quality management aspects and the organisational performance of small and medium-sized enterprises (SMEs). The authors found six essential components by analysing the data obtained from the top management of the 119 questionnaires that were successfully completed. In addition to this, they found that benchmarking and quality assessment, continuous improvement, top management philosophy, employee and customer engagement, staff training, and efficiency improvement were the six aspects that were included in their investigation. In a broader sense, the findings revealed that in order for a TQM strategy to have an effective impact on the performance of an organisation, a combination of hard and soft TQM variables must be adopted in order to have a positive impact on the performance of the organisation as a whole. [T]hese variables include: [T]he ability to measure and analyse performance; [T According to Amin et al. (2016), customer-oriented competences may be strengthened by using TQM approaches, the primary objective of which is to fulfil the needs and expectations of consumers via continual and comprehensive organization-wide changes. The contemporary global corporate environment may be characterised by rapid globalisation, increased market liberalisation, highly sophisticated technological advancements, and inconsistent expectations made by customers.

Another challenge that faces small and medium-sized businesses in today's global economy is the rapid shift in customer requirements that is triggered by advancements

in technology. Customers in today's market are well-informed, have a solid understanding of their legal standing, and are empowered to express their dissatisfaction with the goods and services that are now available to them. As a direct consequence of this, customers in the modern day desire more cutting-edge and high-quality goods and services that also include the most recent technical advancements.

To put it another way, Total Quality Management (TQM) and Enterprise Orientation (EO) are examples of intangible abilities and resources. This is because TQM and EO both play a role in reshaping the culture of a business, making them uncommon and difficult for rivals to replicate. Small and medium-sized businesses (SMEs) are being forced, by a combination of economic and technical forces, to embrace and successfully execute several strategic orientations in order to gain the competitive edge they want. In addition, Thai Hoang et al. (2006) pointed out that while TQM strategies are essential, they are unable to provide an organisation a sustainable competitive advantage on their own. Instead, these strategies need to be supplemented with other innovative methods. This vacuum in knowledge will hopefully be filled by the findings of this research, which will investigate how the combined impact of TQM and EO may more effectively explain the variation in an organisational performance measure.

Shehu (2014) investigated the manner in which TQM influences the performance of Nigerian small and medium-sized enterprises (SMEs). A cross-sectional research design and the partial least square technique were used in the analysis of the collected data. The findings demonstrated a robust and favourable connection between the two constructs that were under investigation. As a consequence of this, the vast majority of the study described above only used descriptive and parametric statistics; none of them utilised non-parametric statistics such as PLS 2.0, which are capable of managing

larger samples. Aliyua (2018) did research into how Total Quality Management (TQM) affects the performance of organisations in the Jordanian banking sector. A questionnaire is sent out to eleven small and medium-sized businesses (SMEs) in the commercial sector using the statistical package for social science (SPSS) software. It was shown that there is a significant correlation between TQM and performance.

Aliyua (2018) conducted an investigation on the views held by corporate customers towards a variety of topics using TQM approaches that were offered by SMEs.

According to the results, senior management's devotion, politeness, and responsibility to customers have a significant bearing on the level of satisfaction felt by those customers.. As a result, the goal of this research is to suggest the following hypothesis:

H2: There is a significant relationship between TQM and the performance of SMEs.

2.7.3 The Relationship between Corporate Entrepreneurship and SME