Critical Success Factors of TQM for Small and Medium Sized Enterprises: a systematic

review of literature

Name of Student

Name of Institute

Date
Abstract
Purpose – The purpose of this paper is to analyzethe Critical Success Factor of total quality
management for small and medium-sized enterprises.

Design/methodology/approach – This study utilizes a systematic review of the literature

contained in thethree databases Heriot-Watt university library and IJLSS.

Findings – CSF is important for an SME to identify and evaluate to sustain its quality processes
such as teamwork, quality management, customer satisfaction, customer focus, the commitment
of employees, educated and trained workforce, employee involvement, quality data, quality
planning, and top management

Research limitations – This paper is limited by the small number of databases used through the
restricted number of keywords used in searching these sources.

Practical implications – This work evaluates a wide variety of CSF in the existing research and
thus an incompleteconsideration of the management, and quality issues within SMEs.
Futureresearchers and SMEs are thereforesuggested to implement a wider view of research that
considers the significanceof the quality process of SMEs.

Originality/value – This study uses a systematic literature review to review critical success
factors of TQM for SMEs and identifies the most critical factors that are critical of a SME

KeywordsCritical success factors (CSF), Total quality management (TQM), Systematic

literature review, Small and Medium Enterprise (SME).

Paper typeSystematic Review

Contents
Introduction ................................................................................................................................... 1

Literature Review ......................................................................................................................... 1

Methodology .................................................................................................................................. 5

Findings and Discussion ............................................................................................................... 6

Conclusion ..................................................................................................................................... 7

References ...................................................................................................................................... 9
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Introduction
On a global scale, most of the small and medium enterprises (SMEs) are striving to enhance their
business practices to achieve total quality management (TQM) and competitive advantage
through which SMEs may attain their desired business objectives (Hilman, Ali and Gorondutse,
2019). TQM has evolved into a mature area of study through systematic review and thematic
analysis of past researches. It has been commonly recognized and is frequently integrated into
the everyday activities of SMEs. TQM can be defined as a management approach focused on
certain reinforcement concepts, relevant strategies, and hands-on techniques. TQM is focused on
co-operation and collaboration standards, process control, quality development, and an emphasis
on maximizing the happiness of both clients and staff (Georgiev and Ohtaki, 2019).The concept
of TQM has evolved dramatically over the years, it also incorporates objective quality (i.e.
features and characteristics of products or services that relate to implied and explicit consumer
needs). Subjective quality (i.e. the willingness of an organisation, an operation, an individual or a
device to provide products or services) that fits optimally, accurately and efficiently (Sahoo and
Yadav, 2017). The cumulative capacity to adjust thoroughly to consumer expectations and
preferences in this area is vital to SME performance. A critical success factor (CSF) of TQM is
described as a significant area of management planning and operation that should be taken into
account to accomplish an organization's successful quality management concerns. To ensure
organisational effectiveness, CSF is a framework used to identify aspects that need to be
implemented for the operations of an organisation to go smoothly (Talib, Ali and Idris, 2014).
This framework so far has been implemented by a variety of researchers within the
TQM discipline during an effort to contribute to the successful application of the CSF in TQM
implementation.

Literature Review
Aich et al (2018), in their study, discovered the CSF that affects the SMEs with regards to their
quality management practices. The study identifies eight factors through experts and a review of
literature from industries and academics. These factors include quality commitment, the
involvement of employees, information technology (IT), customer focus, enhanced production
control and planning, quality management of suppliers, recognition system, and mission and
vision of the management. To understand the complicated relationship of these factors and
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classification of these factors into categories according to their dependence and driving
capacities, interpretive structural modeling (ISM) was utilized. The study outcomes indicate that
for the implementation of TQM in SMEs, IT is indeed a CSF. To enhance the quality of
productivity and product, it is noticed that SMEs need to intensify their IT usage.

The study of Nasim (2018) proposed a conceptual structure of developing the TQM model for
service organisations while taking into consideration the environmental factors such as internal
and external. Therefore, to obtain related journal articles, a systematic review of the literature
was conducted. With few variations, the model proposed in this research can be implemented to
any service business, to improve the organisation’s service quality while considering the quality
improvement internal and external factors. The production quality of organizations could be
enhanced by implementing this framework. Moreover, organizations will be aided by this
framework in implementing TQM with the consideration of internal and external factors. The
analysis of Hilman, Ali, and Gorondutse (2019)developed a conceptual model based on the
review of the literature regarding TQM, SME, and organization culture (OC) performance. A
self-formulated questionnaire was utilized to gather data from owners and managers of SMEs
located in Mecca, Riyadh, and regions located in eastern Saudi Arabia. To identify relationships
a model of the structural equation was considered while using PLS 3.0, through demonstrating a
positive direct impact of OC and TQM on the performance of SME, and an indirect positive
impact of TQM on the performance by OC. A quantitative cross-sectional study framework
analysed a sample of SMEs in the manufacturing industry. The finding and results of the study
fill an empirical research gap that analyses the combined effect of OC and TQM on the
performance of SMEs.

A study of Sahoo and Yadav (2017), investigates the impact of TQM and entrepreneurial
orientation (EO) on the SME’s performance. For developing a questionnaire, literature was
reviewed based on frameworks that describe TQM and EO. The gathered data from 121
manufacturing SMEs was tested through hypothetically formulated designs of this framework
also with the help of AMOS. While adopting the TQM strategy and its direct impact on a firm’s
performance, the results of this study demonstrate the significant role of EO. The findings of the
study also indicate the importance of the direct impact of EO on a firm’s performance, and it can
also be minimized if the indirect impact of EO by TQM is involved in the total effect model. The
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study is cross-sectional and thus does not allow the researcher to adjust for the delay between
performance and implementation. Interrelating EO strategy and TQM practices to world-class
production practices and performance in manufacturing SMEs of India. A systematic review of
the literature was proposed byAquilani and colleagues (2017),to determine new horizons of
research for firms with regards to the constant variations in quality and customers. The research
utilizes three databases JSTOR, Ebsco, Springerlink, and Google Scholar as a search engine.
Three distinct clusters of papers are analyses in which “identification papers” show customer
focus, “implementation papers” show that nonexistent scale, general or shared models that
implements TQM successfully. “Impact-on-performance papers” shows that very few researches
have analysed the association between performance and marketing issues and TQM. This study
illustrates a gap in current research and therefore it is an insufficient evaluation of the
interrelationship between problems of leadership, marketing, and efficiency.
The study of Georgiev and Ohtaki (2019), regarding TQM as a part of its implementation
process, addresses a persistent question. In the literature, the researchers highlight previous calls
to consider the soft dimensions of TQM and also to draw up a CSF list not specifically from the
theory but focused on empirical research. The research comprised of comparative qualitative
case analysis of SMEs gathering empirical data from semi-structured, in-depth interviews with
stakeholders, site observations, and visits. Twelve soft CSFs are identified in this research; the
researcher also identifies other soft factors that have never been considered in past
researches.Lande, Shrivastava, and Seth (2016) define and list CSFs of the Lean Six Sigma
(LSS) system. It also plans to instruct researchers and practitioners in the acquisition of suitable
CSFs. It systematically studies CSF literature and Indian LSS practice. It takes an exploratory
framework for data gathering and tracks different experiments. The analysis directs and enables
researchers to use the most suitable range of CSFs for empirical studies. The research remains
primarily limited to the application of the LSS CSFs. The research greatly decreases
implementation problems and optimizes the execution of empirical research. The results are
generalizable and can be used internationally to evaluate the LSS structure. The study of Sainis
and colleagues (2019)fills the gap created by earlier studies on the implementation of the
certification by the International Organization for Standardization (ISO).It is an achievement that
eventually progresses to the enforcing of a culture of TQM or whether it is the final stage of the
path towards quality. The research was quantitative, accompanied by a qualitative sample
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adopting a triangulation method. The objective was to evaluate hypotheses relevant to the
importance of TQM in the activity of Greek ISO-certified SME businesses. A questionnaire was
created to determine the extent of application of the TQM among 400 Greek SMEs. The study
showed that Greek ISO-certified SME priorities performance evaluation. This report describes
the analysis of TQM throughout the SME sector in Greece.

Talib, Ali,and Idris (2014), in their study,define and verifies a model of measurement for the
evaluation of quality management practices between SME food companies in Malaysia. A
survey was initially undertaken among SMEs, a questionnaire mailed to the managing director of
207 SME was utilized. Eight CSF were suggested for the assessment of quality management
practices in the food processing business sector in Malaysia. PCA with Varimax rotation
indicated 13 elements, eight of which have been kept for further study. The results also show the
position of quality control procedures among food products. Few analyses of the CSF
regarding the TQM practices in the food processing sector have been carried out. The results of
this article can allow the industry to define its existing TQM practice to concentrate on
enhancing its productivity.Assarlind and Gremyr (2014)examine the CSF for the initiatives
of TQM in SMEs. CSFis divided into six categories: contextualization; careful development
utilizing practical objectives; personnel participation and training; external support participation;
involvement of management, and factual follow-up. Further review of the literature revealed that
well-recognized solutions for change in big corporations are often beneficial for small and
medium-sized businesses.

Oliveira et al(2019)in their study provide an analysis of the application of TQM in the
framework of ISO 9001:2008 licensed Brazilian SMEs. The applied research approach used was
a sample of 200 companies, and the structural equation simulation methodology was used to
evaluate the analytical results. The results indicate that ISO 9001:2008 activities which not
generally contribute to improvement in efficiency i.e. Brazil's SME are not progressing towards
TQM due to a lack of knowledge of TQM and dedication to the persistent enhancement of
philosophy. The research has been questioned whether the TQM model is sufficiently stable to
apply to SMEs.According to the study of Hietschold, Reinhardt, and Gurtner (2014),in periods of
globalization and international trade, the idea of TQM as a method to improve organizational
efficiency hasto become increasingly relevant. To take advantage of the benefits offered by
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TQM, companies must navigate the dynamic implementation procedure. Prior studies have,
however, produced a plethora of measuring instruments. An evaluation of 145 articles has found
that CSFs can be divided into 11 distinct dimensions. The report suggests a three-level structure
and a detailed set of measuring instruments to enable researchers and managers to assess each
important dimension.

Methodology
To complete this study, a secondary research methodology has been considered. It required
assimilating data from multiple sources, that is, incorporating accessible research resources
instead of using primary research methods to construct a new information pool. Data collection
from academic sources and general publications were traditional secondary analytical methods.
A systematic review of thematic analysis was further followed by the study. In any systemic
investigation, secondary analysis is an essential part. Thus, it has helped to explain what
investigative attempts have been undertaken so far and has therefore helped to use this expertise
to figure out a new path for the investigation. An insight into past research methodology and
results has helped to characterize the qualitative research. The very initial step in conducting a
systematic review was to first develop a question. Extra care has been taken care to make sure
that authentic and valid information has been used to fulfill the requirement of the study. Since
unauthentic data or information can negatively affect the research study, therefore, resource
evaluation has been carried out by asking the research question “what is the CSF of TQM for
SMEs.”

The first portion of the systematic review simply defines the criteria for inclusion/exclusion. This
could assist readers to recognize the method conducted and analyze the study's quality.
Therefore, the inclusion and exclusion criteria for the research have considered several aspects,
making sure that the information that is not relevant and is not needed is not included in the
research study. For the inclusion criteria, the articles that were starting from the year 2014 were
selected and included in the study. Only those articles have been included in the list that was
addressing the study’s research question. For the exclusion criteria, the articles that were below
the year 2014 were excluded from the list. Also, those articles were rejected that were creating
doubt that they will not provide enough or valid information related to the study’s research
question. Keywords are also considered an important part of the research methodology. Some
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keywords were extracted from the research questions to make the search easy and to obtain
relevant papers. With the help of keywords extracted from the questions, the study was able to
obtain more results. The keywords such as TQM, SME, and CSF. By using these keywords, the
research study has obtained some relevant and authentic research articles from the database
namely the Heriot-Watt University library and IJLSS. With the help of this database, the research
study has accessed those articles that addressed the study’s research question and those were
starting from the year 2014. Around 12 articles have been gathered that were according to the
research study. The extracted articles were then screened for the similarities and differences
among them. These articles have been evaluated by comparing and screening the article’s
abstract, titles. All the articles were evaluated again and again so that theresearch study can
obtain relevant papers and that the research study could easily address the study’s research
question.

Findings and Discussion

Focused on different literature review, this paper aimed to define the CSF for TQM initiatives in
small and medium-sized enterprises. A variety of variables have been derived based on 12
articles. The findings from various articles suggest that TQM can be implemented positively in
SMEs. The analysis of the studies revealed that TQM literature on SMEs stresses consumer
focus, which is generally at the forefront of discussion in the large TQM literature. A potential
interpretation is that this concept, while not apparent in the CSF, is mostly implied in the studies.
Since small businesses are often structured around the concept of service to customers; such
smaller firms are very customer-centric and according to the articles examined. A majority of
managers demonstrated that the customer is more valuable to the organization because the
customers are responsible for generating profit. The analysis of the research studies suggests that
there is no business without any of the customers. The shortage of resources related to the SME
makes the task difficult to do all at once that is why there is a necessity for the careful
implementation of TQM framework in an organization. Further analysis of research articles leads
to the discussion that the scarcity of resources (for instance, monetary, but also with the regards
to the skill, including internal forces of change) is also a justification for stressing the role of
external assistance. Workers in SMEs also have distinct concepts and have a significant effect on
the performance, which is why the participation of workers is essential. As a result of this since
there is always a shortage of specialization and expertise, training of workers is required.
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Analysis of research articles indicates the significance of the management’s involvement. The
evaluation leads to the discussion that the involvement of the management is usually highlighted
in all TQM studies. It is perhaps much more relevant for SMEs that they must have a large
managerial control with either a specific or with few people running the business and a unifying
culture that is mostly driven by these few individuals. Leadership has a heavy impact on strategic
planning, besides, some studies reveal that top leaders is also accountable for the management
and preparation of staff. Leadership greatly impacts "human resource management" and
"learning". Top management and employees define the culture including communication of the
organization. A multitude of factors thus affects the element of “culture and communication”.
Culture, as well as communication, refers not only to the culture and communication style related
to the organization but also to culture as a holistic term. As per the analysis of relevant articles, it
can be suggested that companies should explain their existing quality issues and decide whether
the introduction of TQM is the best way to address these issues.

Conclusion
The analysis of relevant articles has led to the observation that there are several CSFs responsible
for the performance and success of SMEs. These factors are important for an SME to identify
and evaluate to sustain its quality processes such as teamwork, quality management, customer
satisfaction, and customer focus, the commitment of employees, educated and trained workforce,
employee involvement, quality data, quality planning, and top management. Based on the
systematic literature review, the purpose of this study was to determine the CSF of TQM in
SMEs. This study is based on the literature review of twelve papers from which a variety of CSF
has been analysed. These all CSF of TQM are not exclusive to SMEs but specifically associated
with SMEs. As per the reviewed literature, TQM frameworks are insufficient and future research
is needed to discover more frameworks appropriate to TQM for SMEs. Through this study, it is
suggested that CSF is the most imperative factor that an SME implements to achieve optimal
performance and to reduce the quality standards within the organization. SMEs could be
benefited from this study, as this study is focused on the importance of CSF those are essential
for an SME to smoothen their business operations by reducing defective products. This paper
will help SMEs to evaluate CSF which is significant for ensuring the performance and success of
the organisation. Moreover, this paper will also help SMEs to boost their production capacity
while having a low rate of defective products.
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It is observed through the analysis of extensive literature, that there are no sufficient studies
conducted on CSF of TQM on the performance of SMEs. More researches in this domain shall
be conducted to evaluate the influence of CSF of TQM on SMEs. This study is limited to twelve
relevant journal articles extracted from the Heriot-Watt University library and IJLSS, thus, this
paper does not analyse a vast area of study. Moreover, the research paper was sonly based on
SMEs. Moreover, the research was restricted to analyzed the CSF of TQM in SMEs. Therefore,
the focus of the study was to analyze those articles that were based on the CSF of TQM in SMEs.
Future researchers are suggested that more researches must be conducted in this domain to
broaden the research canvas.
SYSTEMATIC REVIEW 9

References
Aich, S., Muduli, K., Onik, M.M.H. and Kim, H.C., 2018. A novel approach to identify the best
practices of quality management in SMES based on critical success factors using
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Aquilani, B., Silvestri, C., Ruggieri, A. and Gatti, C., 2017. A systematic literature review on
total quality management critical success factors and the identification of new avenues of
research. The TQM Journal, 29 (1), pp.184-213.

Assarlind, M. and Gremyr, I., 2014. Critical factors for quality management initiatives in small-
and medium-sized enterprises. Total Quality Management & Business Excellence, 25(3-
4), pp.397-411.

Georgiev, S. and Ohtaki, S., 2019. Critical success factors for TQM implementation among
manufacturing SMEs. Benchmarking: An International Journal, 27 (2), pp.473-498.

Hietschold, N., Reinhardt, R. and Gurtner, S., 2014. Measuring critical success factors of TQM
implementation successfully–a systematic literature review. International Journal of
Production Research, 52(21), pp.6254-6272.

Hilman, H., Ali, G.A. and Gorondutse, A.H., 2019. The relationship between TQM and SMEs’
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Lande, M., Shrivastava, R.L. and Seth, D., 2016. Critical success factors for Lean Six Sigma in
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Nasim, K., 2018. Role of internal and external organizational factors in TQM implementation.
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Oliveira, G.S., Corrêa, J.E., Balestrassi, P.P., Martins, R.A. and Turrioni, J.B., 2019.
Investigation of TQM implementation: empirical study in Brazilian ISO 9001-registered
SMEs. Total Quality Management & Business Excellence, 30(5-6), pp.641-659.
SYSTEMATIC REVIEW 10

Sahoo, S. and Yadav, S., 2017. Entrepreneurial orientation of SMEs, total quality management
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Sainis, G., Haritos, G., Kriemadis, T. and Papasolomou, I., 2019. TQM for Greek SMEs: an
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