Abstract

Measurement of quality management practices is becoming more important in enhancing the holistic competitiveness in today’s challenging market. Malaysia’s food processing industry is rapidly growing and has contributed to the country’s economic development. Malaysia is aiming towards the achievement to be world halal-hub as its potential has been identified. However, literature’s on quality management practices and performance in this industry has indicated that, most of previous studies are focuses to the automotive and electrical industries. Thus, the research question on quality management practices and performance among these industry players in Malaysia are still unanswered. Questionnaires are used to gather information from SMEs in Malaysia’s food processing industries through multistage sampling technique and a total of 221 questionnaires are returned. SPSS and AMOS 5.0 are used to analyze the relationship between this two latent constructs. The finding demonstrates the measured quality management practices are significant to the SMEs’ organizational performance. The findings has highlighted the important factors of quality management practices and suggesting factors that need to be given attention by the food processing SMEs in order to gain excellence performance and be more competitive. Nevertheless, future studies are necessary to set forth and examine various factors that may affect the performance of SMEs in this industry.

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