The Impact of Total Quality Management on the Performance of Small and Medium Enterprises in Ghana

Abstract

In Ghana a number of state institutions are charged with the duty of ensuring the quality of goods and services as well as educating manufacturers, entrepreneurs and consumers on quality standards. The study examines the relationship between total quality management (TQM) practices of small and medium enterprises (SMEs) and the performance of these businesses in Ghana. With the use of a mixed research method consisting of descriptive and inferential statistics the researchers found that differences exist between SMEs in relation to managerial education level, TQM awareness, managerial commitment to TQM principles of continuous improvement, use of new technology, putting the customer first, effective supervision and enforcement of quality practices.  The study also shows a statistically significant association between the implementation of TQM and the SMEs' financial and organizational performance.  The implication of the findings is that the government of Ghana should pursue policies aimed at encouraging training and improving the managerial skills of SME owner/managers as well as creating the enabling environment for the development of improved modern technologies to transform the business processes of these vital industries. The Ghana Standards Board must also sit up and enforce quality regimes to ensure goods and services produced meet international standards.