This paper examines the mediating role of competitor orientation and inter-functional coordination between leadership styles and Total Quality Management (TQM) implementation. The empirical data for this study were drawn from a survey of 203 leaders from manufacturing and service firms in Addis Ababa and its surrounding cities to examine the reliability and validity of the independent constructs; mediating constructs (i.e., competitor orientation and inter-functional coordination); and implementation of TQM. The data were analyzed using Structural Equation Modeling (SEM) to examine the mediating role of competitor orientation and inter-functional coordination between leadership styles and the implementation of TQM. The result of this study revealed that servant and transactional leadership did have a positive and direct effect on the implementation of TQM, while the relationships were further positively mediated by interfunctional coordination for the servant leadership-TQM relationship and negatively mediated by competitor orientation for the transactional leadership-TQM relationship. On the other hand, transformational leadership had only a positive and indirect effect on implementing TQM through competitor orientation and inter-functional coordination. Our sample companies came from different industries (both manufacturing and service sectors). Hence, future studies could consider samples from manufacturing and service sectors independently to control and reduce the bias resulting from industry differences. The results can be beneficial for the current organizational leaders to achieve appropriate leadership styles and understand the mediating role of competitor orientation and interfunctional coordination between leadership styles and the implementation of TQM.

The focus of this study was to consolidate the existing knowledge on leadership, market-oriented culture, and TQM by proposing a conceptual model providing a starting point for researchers and practitioners seeking to implement market-oriented culture and TQM in organizations and offering suggestions for future research. A systematic literature review was undertaken to review works published on transformational leadership, market-oriented culture, and TQM practices. The review's key findings show that transformational leadership is required for successful TQM implementation and market-oriented culture in organizations and is critical to sustaining their improvement. This research is based on a systematic literature review of works published on transformational leadership, market-oriented culture, and TQM practices. Transformational leadership is critical for both market-oriented culture and TQM implementation success. There is a need to develop a new model of transformational leadership that encompasses the leadership behavior needed for both market-oriented culture and TQM.