Innovation performance mediating relationship between TQM practices and organisational performance in the Ethiopian Garment Industry

Abstract

The purpose of this study is to analyze the relationship between total quality management (TQM) practices and innovation performance and their impact on organisational performance in the case of the Garment Industry (Adama, Ethiopia). The empirical data was collected using a five-point Likert scale questionnaire that was distributed to employees of different departments and factories in the case industry. A simple random sampling technique was used. 88.40% response rate was obtained. SPSS 28-version was used for statistical data analysis. Raw data were initially refined by various statistical processes and further analysed by descriptive statistics and inferential statistics by correlation and regression analysis to determine the relationship between TQM practices (independent variable) and organisational performance (dependent variable) and innovation performance as a mediating factor. The Hayes’ Process Macro was used as a statistical analysis in SPSS to estimate the path coefficients using multiple regression. The tool provides insights into the direct and indirect effect of the independent variable on the dependent variable through the existence of moderating variables and mediation variables. Findings revealed that TQM practices were found to be correlated with organisational performance. Hayes’ Process Macro output revealed the individual coefficient between the TQM index (TQMI) and innovation performance with beta=0.74, TQMI and organisational performance with beta=0.71. The total effect of TQMI on organisational performance with beta=0.71, the direct effect of TQMI on organisational performance with beta=0.49, and indirect effect(s) of TQMI on organisational performance with beta=0.22 with p=0.000 and all 95 percent confidence internal level. The variance accounted for the role of innovation performance as a mediating factor is partial with 30.97 percent and a positive relationship between TQMI and organisational performance. The study was limited by including only one big industry in Adama city, making this may not be adequate to generalize the results for the entire Ethiopian garment industry. This study helps practitioners to understand how TQM practices support innovation performance and the role of the latter in promoting the implementation of TQM practices and ensuring organisational performance.