Effect of Strategic Quality Management Practices on Organizational Performance of the Steel Manufacturing Sector in Kenya

Abstract

The concept of strategic quality management in the steel manufacturing sector has attracted great attention in the recent days, and is key for organization survival. Many organizations find it difficult to sustain their competitive advantages, despite having a robust quality policy. The general objective of this study was to determine the effect of strategic quality management practices on organizational performance of the steel manufacturing sector in Kenya. The study specifically sought to establish the effects of strategic customer relations, strategic quality performance measurement, strategic top management support, strategic suppliers’ relations, strategic employee relations practices and organizational learning as a moderator on performance of the steel manufacturing sector in Kenya. The study adopted a cross-sectional survey research design. Both qualitative and quantitative data was collected through structured questionnaires. The questionnaire was pretested before data collection for validation and reliability. Target population was 46 Kenyan Steel Manufacturing Companies listed in the Kenyan Business Directory 2015. Sample size of 42 was determined by the use of Krejcie and Morgan’s Sample Size Table. The unit of analysis was the employees in charge of strategic quality management matters in the steel manufacturing companies in Kenya. Respondents were Management Representatives or Quality Assurance Managers or their equivalents. All respondents who were given the questionnaire filled and returned them. The collected data was coded and analyzed using both quantitative and qualitative methods with the help of descriptive and inferential statistics. The Statistical Package for Social Sciences was used. Testing of hypotheses was done using analysis of variance. Variance Inflation Factor was used to illustrate the significance of the association between financial performance and the strategic quality management practices. Analyzed data was presented using tables and percentages. Regression results indicated that strategic customer relations practices, strategic top management support practices, strategic quality performance measurement practices, strategic suppliers’ relations practices and strategic employee relations practices were statistically significant on performance of the steel manufacturing companies in Kenya. The study also identified high organizational performance when strategic quality management practices are moderated by organizational learning. From the study, it is possible to conclude that the steel manufacturing companies in Kenya are not fully embracing the strategic quality management practices. Therefore in order to survive and prosper in a rapidly changing business environment, the companies should strive to maximize on implementation of the strategic quality management practices that positively influence organizational performance. The study therefore recommends that organizational managers should initiate and reinforce the various strategic quality management practices to enhance performance. Managers should focus their efforts on creating loyal customers through increased customer satisfaction. Managers should also actively involve employees in decision making since doing so makes them become highly motivated. The study also recommends that policy makers should create a policy framework that is geared towards improving performance. Policy makers should also establish explicit standard guidelines for supplier relations that are based on quality so as to maintain quality based long term relationships with suppliers.