The Effect Of Total Quality Management Implementation On Organizational Performance: The Case Of Xiangbo Textile Manufacturing Company

Abstract

practices across The textile manufacturing industry in Ethiopia plays a vital economic role but faces significant challenges such as high defect rates, low productivity, infrastructure constraints, skill gaps, and foreign exchange shortages, all of which hinder its global competitiveness. This study examines the impact of Total Quality Management (TQM) implementation on organizational performance at Xiangbo Textile Manufacturing Company in Ethiopia, focusing on six key TQM elements: Customer Focus (CF), Process Approach (PA), Continuous Improv¬¬¬ement (CI), Employee Empowerment (EE), Supplier Participation (SP), and Top Management Commitment (TMC). Total Quality Management (TQM) offers a strategic solution to these issues by enhancing product quality, operational efficiency, and customer satisfaction through continuous improvement, employee involvement, and process optimization. Utilizing an explanatory and descriptive research design, data were gathered through questionnaires from 109 employees, achieving a 94% response rate (102 respondents), and analyzed using descriptive statistics, correlation, and multiple regression. The research addresses the Ethiopian textile sector’s evolving quality management landscape, where firms face challenges like resource limitations and cultural constraints, yet strive to enhance efficiency, flexibility, and market competitiveness. The regression analysis reveals that TQM significantly boosts organizational performance, explaining 68% of its variance (R² = 0.68), adjusted R² = 0.65) with TMC (β = 0.35, p < 0.001), CI (β = 0.27, p < 0.001), and CF (β = 0.20, p < 0.01) as the most influential predictors, underscoring the pivotal roles of leadership and ongoing improvement. Despite the overall positive effect, variations in the strength of TQM elements reveal implementation gaps. SP (β = 0.17, p < 0.05) and PA (β = 0.11, p < 0.05) contribute significantly but to a lesser extent, while EE (β = 0.07, p = 0.257) shows no notable impact, likely due to limited empowerment stemming from hierarchical norms prevalent in the Ethiopian context. Xiangbo’s experience demonstrates TQM’s transformative potential for Ethiopia’s textile industry, driven by robust leadership and customer-oriented practices, yet it is tempered by weaknesses in employee involvement and process standardization. These results highlight that while Xiangbo benefits from robust leadership commitment and customer-oriented efforts, weaknesses in employee involvement and process standardization hinder full TQM potential. To maximize the benefits of Total Quality Management (TQM) at Xiangbo Textile Manufacturing Company, top management should lead by example by actively participating in quality initiatives and clearly communicating a quality-focused vision and mission aligned with strategic goals. Prioritize enhancing employee empowerment through training and overcoming cultural barriers to foster autonomy and active staff involvement, supported by leadership’s commitment to quality. Strengthen the process approach by standardizing procedures and collaborating closely with suppliers on shared quality standards to improve input quality and market competitiveness. Sustain continuous improvement and customer focus by embedding structured feedback mechanisms, providing resource support for quality initiatives, and advocating for policymaker support, such as industry-wide training or incentives, to elevate quality Ethiopia’s textile sector.