PurposeThis study is aimed at examining the effect of Total Quality Management (TQM) practices on the operational performance of ISO 9001:2008 certified manufacturing companies in Ethiopia.Design/methodology/approachA cross-sectional survey was conducted to meet the purpose. Primary data was collected from the managers and senior experts working under the production and quality management units of the surveyed firms. Data was obtained from a survey of 252 participants found in 35 ISO 9001:2008 certified manufacturing organizations. Both EFA and CFA were applied to validate and confirm the instrument, and Structural Equation Modeling (SEM) was used to test the hypotheses.FindingsThe results revealed that among the practices of TQM used in the model only supplier quality management, continuous improvement and process management were found to have significant and positive effect on the operational performance of the ISO 9001:2008 certified manufacturing organizations in Ethiopia.Research limitations/implicationsFuture studies are suggested to consider some contextual variables such as firm age, scope of operation, firm size and firm strategy while addressing the objective.Practical implicationsThe study will encourage managers of manufacturing companies in Ethiopia to utilize a reliable and valid framework of TQM practices for better operational performance results.Originality/valueThe fact that Ethiopian manufacturing organizations are required to improve their product's quality in order to improve their productivity and enhance their competitiveness in a global market is the rationale of this study. Even though several studies have evolved to scrutinize the link between TQM and operational performance across the world, nearly nothing, is known about this linkage in Ethiopia. Thus, the study represents one of the first attempts to empirically investigate this linkage in Ethiopian context.

PurposeThis study aims at examining the effect of total quality management (TQM) practices on the financial performance ISO 9001:2008 certified manufacturing companies in Ethiopia with a mediating role of operational performance.Design/methodology/approachA cross-sectional survey research was conducted to meet the purpose. Data used for the study were solely primary data and were collected from the top and middle-level managers of different departments and senior experts working under the production/operation and quality management units of the target organizations. Data were obtained from 302 participants working in 73 companies using a self-administered questionnaire. Structural equation modelling (SEM) technique was applied to test the hypotheses positing the structural link between TQM practices, operational performance and financial performance.FindingsThe findings show that TQM practices had a significant direct and positive effect on both operational performance and financial performance and that operational performance significantly affects financial performance. The bootstrapping output of the mediation analysis also established that operational performance partially mediates the causal link between TQM practices and financial performance.Research limitations/implicationsThe empirical evidence provided by the present study provides helpful insights and guidance to managers to make a good deal of investment in maintaining enhanced performance outcomes under the operations stream that eventually would lead to better financial outcome.Originality/valueBeing one of the first attempts to empirically examine the structural linkages among TQM practices, operational performance and financial performance in Ethiopian manufacturing organizations, this paper provides strategic insights on the importance of implementing TQM practices in a holistic manner for the achievement of better performance outcomes.