Total Quality Management: A Catalyst for Operational Excellence in Small and Medium Sized Enterprises (SME’s) in Ghana

Abstract

Globalization presents both opportunities to economies in the form of new market as well as threat of competition from foreign entrants due to trade liberalization. In addition to globalization are changing need of the customer and technological advancement. This situation is adversely affected by local businesses in countries in Africa including Ghana. It is also evident that about 90% of businesses in Ghana are SMEs. Therefore, the operations of SMEs are affected by these new trends hence their high mortality rate in Ghana. Meanwhile, these SMEs are recognized as the principal driving forces for economic development in both developed and developing economies including Ghana. This study employed a quantitative approach with data collected from samples of SMEs through questionnaire. Stratified random sampling was used to sample SMEs while purposive and convenient sampling was applied to choosing respondents. The study found out that, the SMEs are not practicing TQM. The study results further indicates that Critical Success Factors for implementing TQM will have a positive impact on the business performance of SMEs. Additionally, the study identified some notable challenges hindering successful implementation of TQM among SMEs in Ghana. Lastly, the study proposed a TQM implementation framework for SMEs to follow. The study recommends that SME owners and managers should fully adopt TQM to ensure innovation and continuous improvement. Again, they should make it a priority to involve the customer in designing products. To Government, recommendation is made for the investment in human capital of nationals as well as the introduction of policy to support SMEs.