The relationship between TQM tools and organisation performance in small and medium enterprise (SMEs)

Abstract

Total Quality Management (TQM) is a vital driver for continuous improvement in an organization for improving their performance. TQM tools are very important in supporting improvement activities. However, small and medium enterprises (SMEs) have limited resources and awareness for implementing TQM tools in their organisation. Hence, the purpose of this research is to identify the extent level of TQM tools and to examine the relationship between TQM tools and organisational performance. Research hypotheses were examined while considering twenty TQM tools which considered important in TQM implementation. Random sampling and survey have been used by distributing questionnaire to 200 respondents for final study. The study result shows that the extent level in TQM tools is in high and moderate level. Furthermore, there is a significant relationship between TQM tools and organisational performance in SMEs. However, the relationships are in moderate and low level. The study is important for SMEs to gain insight on the effect of TQM practices towards TQM tools in organizational performance and identify the most important tools and techniques for their companies in future implementation.