THE NEXUSES BETWEEN QUALITY MANAGEMENT PRACTICE AND OPERATIONAL PERFORMANCE OF ETHIOPIAN LEATHER INDUSTRY: A CASE OF THREE SELECTED LEATHER FACTORY

Abstract

The purpose of this study is to assess the nexus between QMP and operational performance of Ethiopian leather industry. Quality management practices (QMPs) have been proposed to improve operational performance (OP) and received substantial attention in recent researches. Although continuous attention given to QM in industrialized countries however, it is only since the last decades that researcher have started to analyze quality management practices in developing countries. While study have suggested that QM practice helps to improve OP, the researcher analyzed as there is gap/ lack of empirical data in Ethiopian firms’. This study empirically examine the extent to which the nine identified QMPs and OP are correlated and how QMPs impacts on OP in Ethiopian leather industry; and it, therefore, bridge a gap in the literature. The explanatory research design was undertaken with the help of the semi-structured questionnaire to conduct the research. The research had done based on the responses of management staffs working in the selected case leather factory. The data was planned to collect from 65 of the population by using self-administered questionnaire tested proposed model. The final response rate was 43; based on this the analysis was carried out. The statistical findings revealed that there is significant correlation between QMPs and OP i.e. (4.35, 40, 0.68 and 93%), the average mean, frequency, SD, and percent respectively. Moreover, Pearson correlation result revealed that (p=.379 and r= .027), the main hypothesis “there is positive and significant relationship between overall Quality management variables and firms operational performance” is supported at the significance level of r<0.05. Therefore, the results of this study supported a model proposed. As this research provided valuable knowledge in QMP regarding the management perception towards firms’ operational performance; the synergy among the QM factors brings about exceptional improvements in the firm OP. Therefore, firms Management must focus on the identified QM constructs to achieve higher levels of customer satisfaction in the industry and improve the perception on critical success factors that have high effect on OP and allocate sufficient resources to practice QMP successfully to have industry competitive advantage. Finally, this study offers the base to conduct similar research in related area.