The Influence of TQM on Export Performance of Manufacturing SMEs in Jordan

Abstract

This research aims to investigate the influence of total quality management (TQM) practices on export performance in small and medium-sized enterprises (SMEs) in the Jordanian manufacturing sector. A questionnaire was used to collect the data and 181 usable responses were received from the owners/managers of exporting manufacturing SMEs in Jordan. The data was analyzed by using a structural equation modeling technique. The findings revealed that there is a significant positive influence of TQM on SMEs’ export performance. Moreover, the most important TQM practices, in terms of their impact on export performance, are employee training and development, continuous improvement and customer focus. Based on these findings, several recommendations were proposed to enhance the understanding of managers or decision makers of SMEs of the suitable factors that influence the firm in adopting TQM, which would lead to the maximum improvement in their business results in the international market as well as to better achievement in export performance. Very little research has been conducted showing the importance of TQM on the export performance of SMEs from a developing country’s perspective, particularly in the Middle East. This study addresses an area that is believed to be less studied. The significance of the current study emanates from that it could be used as a model and guide to those intending to study export success in other emerging market economies.