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Effect of Total Quality management Practices on Competitive Advantage in Manufacturing Companies in Ethiopia: The case of Kality Steel Factory
person   Tigist Taye

date_range   2023-12-03 00:00:00

Abstract

The main objective of the study is to assess Effect of Total Quality management practices on competitive advantage in manufacturing companies in Ethiopia particularly on Kality Steel Factory. To achieve the objectives of the study and to answer the basic research questions of the study, the researcher used explanatory research design, mixed research approach. The main data collection tools were questionnaires and interviews. The main methods of data analysis were descriptive statistics (mean and standard deviation), Pearson correlation and multiple regressions. The researcher used purposive and random sampling techniques. The findings of the study indicated that TQM practices were implemented by Kality Steel Factory PLC but at varying degrees. For example, top management Commitment; teamwork and Employee Empowerment dimensions were adopted in a moderate level. While, Customer relationship management, Continuous Improvement and Employee Involvement dimensions were adapted to a low extent. Customer relationship management, Top management Commitment, Continuous Improvement, Teamwork, Employee Involvement and Employee Empowerment had positive and significant effect on competitive advantage. In addition the findings of the study indicated that the coefficient of determination (R Square) shows that 79.1 % of competitive advantage is determined by Top Management Commitment, Teamwork, Continuous improvement, employee empowerment, and Employee Involvement and Customer relationship management. The remaining 20.9% of competitive advantage is determined by other factors not included in this study. TQM practices like Customer relationship management, Top management Commitment, Continuous Improvement, Teamwork, Employee Involvement and Employee Empowerment had positive and significant correlation with competitive advantage at 1% level of significance. There is 88.9% of correlation between Top Management Commitment, Teamwork, Continuous improvement, employee empowerment, Employee Involvement and Customer relationship management and competitive advantage. This implies that Top Management Commitment, Teamwork, Continuous improvement, employee empowerment, Employee Involvement and Customer relationship management and competitive advantages goes hand in hand. The basic strategy used in to enhance competitive advantages in Kality Steel Factory PLC includes the implementation of total quality management practices like Customer relationship management, Top management Commitment, Continuous Improvement, Teamwork, Employee Involvement and Employee Empowerment. From the analysis we can concluded that project Top management Commitment and Continuous Improvement are the most significant factor that affect competitive advantage followed by Employee Empowerment, Customer relationship management, Teamwork and Employee Involvement. Conducting relevant training for the employees to inculcate in them the principles and practices of TQM in order to eliminate or reduce to the barest minimum resistance to change. Key Words: total quality management Practices, competitive advantage, Plan-Do-Check Act, continuous improvement


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