Critical success factors of quality management practices among SMEs in the food processing industry in Malaysia

Abstract

Purpose – The purpose of this research is to identify and validate a measurement model for assessing the quality management practices among small and medium-sized enterprises, specifically for the food processing industry in developing countries such as Malaysia. Design/methodology/approach – A survey was initially conducted among SMEs using a questionnaire mailed to the managing director of companies selected from the SMECorp directory. A total of 207 respondents from SMEs were used for further analysis. Two steps of analysis were undertaken to validate the measurement model of critical success factors: principal component analysis and confirmatory analysis. Findings – Eight critical success factors of quality management practices are proposed for assessing quality management practices among SMEs in the food processing industry in Malaysia. A measurement model was then developed. PCA with Varimax rotation revealed 13 components, eight of which were retained for further analysis. First- and second-order CFAs identified the CSF measurement model along with the goodness-of-fit index. Thus, the findings also reveal the status of quality management practices among food processing SMEs in Malaysia. Research limitations/implications – This paper is to evaluate only the CSFs; therefore, further work is needed to evaluate the relationship between CSFs and organisational performance of SMEs in the food processing industry in Malaysia. Originality/value – There are various papers regarding the assessment of quality management, especially on TQM practices in various industries. However, few assessments of the critical success factors of quality management practices of SMEs in the food processing industry, especially in developing countries like Malaysia, have been found to date. The findings of this paper will help the industry to identify its current quality management practice to focus on improving its performance.