Influence of TQM practices on Organisation Performance of Indian Manufacturing SMEs: Path Analysis Approach

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Main Authors: Ganesan Muruganantham, Shanmugham Sridar
Format: Recurso digital
Published: Zenodo 2025
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author Ganesan Muruganantham
Shanmugham Sridar
author_facet Ganesan Muruganantham
Shanmugham Sridar
contents <p><strong><span lang="EN-IN">Abstract: </span></strong><span lang="EN-IN">Small and medium size enterprises (SMEs) are considered to be the life blood of modern economies. It plays a greater role in the growth and development of an economy, not only by producing high quality products, but by working as ancillary units, producing those components, which larger companies requires. Total Quality Management (TQM) is considered an important quality improvement tool. <span>As Indian manufacturing sector is growing at a rapid rate, TQM has gained lot of importance and has emerged as a vital pillar for growth of an organisation. TQM has been identified as a significant driver for the organisational success. Different organisations follow different TQM practices, as the process of </span>planning, comprehending and arranging every task is unique for every organisation. In order to raise the overall quality of the product, companies use <span>TQM</span> to identify, enhance and get rid of any defects in their operational cycle. TQM ensures that the management adopts a strategic overview of the quality and focuses on prevention rather than inspection. TQM system helps the corporations to combine all their quality system into a single unified strategy, which can lead to benefits that corresponds with both profitability and regulatory compliance. But compared with large organizations, SMEs have been slow in adopting TQM practices.<span>  </span>This paper analyses the impact of those TQM practices on organisational performance, with special reference to Indian SME’s. <span>The study uses a method of structured questionnaire to procure data from 200 respondents. The collected data have been analysed using path analysis, correlation and confirmatory factor analysis (CFA). Findings show that adopting TQM practices have positive impact on the organisational performance, improving the quality and overall achievement of the organisation. These findings are useful to the management of SMEs, who have some hinderence in adopting TQM practices, thinking that it is a costly affair. The paper discusses that benefits, which an organisation enjoys, surpasses the cost involved in adopting TQM practices. </span></span></p> <p><strong><span lang="EN-IN">Keywords:</span></strong><span lang="EN-IN"> Soft Factors, Hard Factors, Quality Performance, Management Committment, Process Approach, TQM.</span></p> <p><strong><span lang="EN-IN">JEL Classification Number: </span></strong><span lang="EN-IN">O31, O33</span></p>
format Recurso digital
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publishDate 2025
publisher Zenodo
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spellingShingle Influence of TQM practices on Organisation Performance of Indian Manufacturing SMEs: Path Analysis Approach
Ganesan Muruganantham
Shanmugham Sridar
<p><strong><span lang="EN-IN">Abstract: </span></strong><span lang="EN-IN">Small and medium size enterprises (SMEs) are considered to be the life blood of modern economies. It plays a greater role in the growth and development of an economy, not only by producing high quality products, but by working as ancillary units, producing those components, which larger companies requires. Total Quality Management (TQM) is considered an important quality improvement tool. <span>As Indian manufacturing sector is growing at a rapid rate, TQM has gained lot of importance and has emerged as a vital pillar for growth of an organisation. TQM has been identified as a significant driver for the organisational success. Different organisations follow different TQM practices, as the process of </span>planning, comprehending and arranging every task is unique for every organisation. In order to raise the overall quality of the product, companies use <span>TQM</span> to identify, enhance and get rid of any defects in their operational cycle. TQM ensures that the management adopts a strategic overview of the quality and focuses on prevention rather than inspection. TQM system helps the corporations to combine all their quality system into a single unified strategy, which can lead to benefits that corresponds with both profitability and regulatory compliance. But compared with large organizations, SMEs have been slow in adopting TQM practices.<span>  </span>This paper analyses the impact of those TQM practices on organisational performance, with special reference to Indian SME’s. <span>The study uses a method of structured questionnaire to procure data from 200 respondents. The collected data have been analysed using path analysis, correlation and confirmatory factor analysis (CFA). Findings show that adopting TQM practices have positive impact on the organisational performance, improving the quality and overall achievement of the organisation. These findings are useful to the management of SMEs, who have some hinderence in adopting TQM practices, thinking that it is a costly affair. The paper discusses that benefits, which an organisation enjoys, surpasses the cost involved in adopting TQM practices. </span></span></p> <p><strong><span lang="EN-IN">Keywords:</span></strong><span lang="EN-IN"> Soft Factors, Hard Factors, Quality Performance, Management Committment, Process Approach, TQM.</span></p> <p><strong><span lang="EN-IN">JEL Classification Number: </span></strong><span lang="EN-IN">O31, O33</span></p>
title Influence of TQM practices on Organisation Performance of Indian Manufacturing SMEs: Path Analysis Approach
url https://doi.org/10.5281/zenodo.15381979