Total Quality Management and Competitive Advantage of Small and Medium Enterprises in Nairobi City County

Abstract

Total Quality Management is an approach which focuses on improving the organization's effectiveness, efficiency and responsiveness to customers' and other stakeholders' needs by actively harnessing people's skills and competencies in the pursuit of achieving sustained competitive advantage. Although it is generally accepted that Total Quality Management (TQM) can generate a sustainable competitive advantage, there is, surprisingly, little research that has been carried out in developing countries. Most of the literature that supports this has come from developed countries. In developing nations like Kenya, Small and Medium scale industries (SMEs) play a vital role in providing employment and boosting the economy of the country. The objective of the study was to identify the critical success factors that contribute to competitive advantage in SMEs in Nairobi and to establish a guideline that management can use to improvise their firm’s competitive advantage above their competitors. This study included a questionnaire survey where small and medium enterprises claiming to adopt Total quality management practices in their structure of governance were questioned. From the results, the study aimed to deduce that the content of TQM is capable of producing a competitive advantage to SMEs. Results established that there exists a correlation between total quality factors and competitive advantage. Results inferred from the questionnaire survey is that the small and medium scale enterprises in Nairobi are trying cope with new quality management practices to increase the productivity. From the findings, the study recommends that SMEs should establish quality management systems and improve on their quality management programs to ensure effective TQM implementation and for the overall success of the company