Path-Analysis Model on Total Quality Management in the Small and Medium Sized Manufacturing Companies in Malaysia

Mohamad Reeduan Mustapha, Mohd Shaladdin Muda, Fauziah Abu Hasan

Abstract


Total Quality Management (TQM) is practiced by many companies around the world including in the small and medium sized manufacturing companies in Malaysia. The developing countries can increase their trade activities and develop in a sustainable way is to improve the quality of their products and services. Quality has become one of the most important competitive strategic tools, and many companies have realized that it is a key to starting businesses and developing products and services that support continuing success. The main objective of this study is to obtain a TQM principles and practices model for Small and Medium Enterprises (SMEs) in the manufacturing industry. The Malaysian Administrative Modernization and Management Planning Unit (MAMPU) has outlined TQM by means of the seven core principles. However, some principles and practices of TQM may differ among companies and industries, due to this reason further research on other principles that approaches to TQM were brought to the fore. Malaysian organizations are encouraged to apply those principles in order to attain a competitive advantage in the global marketplace. The data have been collected through a questionnaire survey. The finding of path-analysis model revealed that strategic quality planning and top management support were significant towards employee satisfaction, as well as enhancing teamwork and employee satisfaction was significantly related to product quality. Consequently, the finding of path-analysis model is considered applicable to a wide range Malaysian SMEs in the manufacturing industry into a new dimension.

Keywords: 

TQM, SME, Manufacturing

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