Impact of Total Quality Management (TQM) on Operational Performance of Ethiopian Pharmaceutical Manufacturing Plants
The purpose of this study is to examine the impact of TQM system on the operational performance of the pharmaceutical manufacturing companies operating in Ethiopia. Data for this study is collected using self-administered questionnaires. The survey is carried out on 65 respondents drawn from 13 companies. Out of 65 questionnaires distributed among these companies, a total of 57 got returned. Through comprehensive literature review, seven critical success factors of TQM that are relevant to the pharmaceutical industry are identified. Correlation & regression analyses are used to investigate the relationship between TQM variables on the one side and common operational performance measures (Quality, Cost, and Delivery & Flexibility to volume) on the other side. The Correlation analysis reveals that there is strong relationship between TQM practices and operational performance among the pharmaceutical manufacturing companies. The outcome of regression analysis indicates that customer focus, process management, product design and people management have significant contribution to at least one of the operational performance measures. Top Management’s support, suppliers’ quality management and continuous improvement do not appear to contribute to higher levels of performance. This study offers pharmaceutical companies and their managers a better understanding of the relationship and impact that some of TQM elements have on the performance of their operations. Thus managers will get an opportunity to take better & more effective decisions in the implementation of TQM. This study can also guide organizations to prioritize the implementation of TQM based on the strategic importance of performance measures needed by them. The choice performance measure is based on the perceptions of managers and therefore, generalization of the observations may be made with caution.
 AU-UNIDO. (2012). African union, “Manufacturing plan for Africa: Business plan”, Addis Ababa. available at: http://www.unido.org /file admin/user_media_upgrade /Resources/Publications/Pharmaceuticals/PMPA_Business_Plan_Nov 2012_ebook.PDF.
 UNCTAD: Biadgleng, E. Groot, A. & Schellekens, O. (2011). Local production of pharmaceuticals and related technology transfer in developing countries: A case study on Ethiopia. Available at: https://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=230.
 Boyer, K. K. & Pagell M. (2000). Measurement issues in empirical research: improving measures of operations strategy and advanced manufacturing technology. Journal of Operations Management, 18(3), 361-374.
 Brah, S. & Lim, H. (2006). The effects of technology and TQM on the performance of logistics companies. International Journal of Physical Distribution & Logistics Management, 36(3), 192-209.
 Cua, K. O., McKone, K. E., & Schroeder, R. G. (2001). Relationship between implementation of TQM, JIT, and TPM and manufacturing performance. Journal of Operations Management, 19, 675-694.
 Demirbag Mehmet, Tatoglu Ekrem, Tekinkus Mehmet, & Zaim Selim. (2006). An analysis of the relationship between TQM implementation and organizational performance Evidence from Turkish SME. Journal of Manufacturing Technology Management, 17(6), 829-847.
 Flynn, B., Sakakibara, S., & Schroeder, R. (1995). Relationship between JIT and TQM: practices and performances. Academy of Management Journal, 38(5), 1325–1360.
 Fuzi Meftah Abusa & Peter Gibson. (2013). Experiences of TQM elements on organizational performance and future opportunities for a developing country. International Journal of Quality & Reliability Management, 30(9), 920-941.
 Haile Yeshanew Baye & Raju R. Satya. (2016). The extent of TQM practices in Ethiopian manufacturing firms: An empirical evaluation. International Journal of Applied Research, 2(5), 238-244.
 Hasan M. & Kerr R.M. (2003). The relationship between total quality management practices and organizational performance in service organizations. The TQM Magazine, 15(4), 286-291.
 Hassan Masood, Mukhtar Aamna, Ullah Saif Qureshi, & Sidra Sharif. (2012). Impact of TQM Practices on firm’s performance of Pakistan’s manufacturing organizations. International Journal of Academic Research in Business and Social Sciences, 2(10), 232-259.
 Kumar Virender, Jasbir Singh, Davinder Kumar, & Mamta Antil. (2016). Total quality management. National Journal of Advanced Research, 2(3), 05-08.
 Lai kee-hang. (2002). The state of quality management implementation: A cross-sectional study of quality-oriented companies in Hong Kong. Available at: https://pdfs.semanticscholar.org/fcbc/e04dddff8ef00ce2f3c53e3b89304b4d64ce.pdf.
 Lakhal L. (2009). Impact of quality on competitive advantage and organizational performance. The Journal of the Operational Research Society, 60(5), 637-645.
 Martínez-Lorente, Dewhurst Angel R., Dale Frank & Barrie G. Dale. (1998). Total quality management: Origins and evolution of the term. Available at: https://www.emerald.com/insight/content/doi/10.1108/09544789810231261/full/html.
 Munizu Musran. (2011). Critical total quality management in manufacturing companies: A case study in Makassar. Journal of Economics, Business and Accountancy Ventura, 14(2), 175–184.
 United Nations Conference on Trade and Development (UNCTAD). (2017). The role of the services economy and trade in structural transformation and inclusive development. Available at: https://unctad.org/meetings/en/SessionalDocuments/c1mem4d14_en.pdf.
 Oakland, J. (2003). Total quality management –Text with cases. (3rd ed.). Butterworth Heinemann.
 Patel Setuand & Maheswari Dilip. (2016). Total quality management: The need of the hour for pharmaceutical industry. Asian Journal of Pharmaceutical Technology & Innovation, 04(19), 71-78.
 Phan, A. C. & Matsui, Y. (2006). An empirical analysis of quality management practices in Japanese manufacturing companies. Proceedings of the 11th Annual Conference of Asia Pacific Decision Sciences Institute Hong Kong, pp. 126-137.
 Powell Thomas C. (1995). Total quality management as competitive advantage: A review and Empirical study. Strategic Management Journal, 16, 15-37.
 Raja W, Bodla MA, & Malik SA. (2011). Evaluating the effect of total quality management practices on business performance: A study of manufacturing firms of Pakistan. International Journal of Business and Social Science, 2(9), 110-117.
 Sadikoglu Esin & Olcay Hilal. (2014). The effects of total quality management practices on performance and the reasons of and the barriers to TQM practices in Turkey. Hindawi Publishing Corporation Advances in Decision Sciences, 2014, Article ID 537605, 17.
 Salaheldin Ismail Salaheldin. (2009), Critical success factors for TQM implementation and their impact on performance of SMEs. International Journal of Productivity and Performance Management, 58(3), 215-237.
 Seth, D., & Tripathi, D. (2005). Relationship between TQM and TPM implementation factors and business performance of manufacturing industry in Indian context. International Journal of Quality & Reliability Management, 22(3), 256-277.
 Sila Ismail & Ebrahimpour Maling. (2005). Critical linkages among TQM factors and business results. International Journal of Operations & Production Management, 25(11), 1123-1155.
 Slack Nigel, Brandon Alistair, & Johnston Robert. (2013). Operation management. (7th ed.), Pearson Publishing.
 WHO. (2011). Local production and access to medicines in low- and middle-income countries: A literature review and critical analysis. Available at: http://www.who.int/phi/en/.
 World Trade Organization (WTO). (2017). Report to the TPRB from the Director-General on trade-related developments. Available at:
Copyright (c) 2019 International Journal of Engineering and Management Research
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.