The Mediating Effect of Organizational Culture on Total Quality Management and Organizational Performance in the It Industry in Kenya

Abstract

Total quality management (TQM) is perceived as an important approach to enhancing the performance and competitiveness of the firm. The purpose of this study was to investigate the mediating role of organizational culture in the TQM and organizational performance relationship. A descriptive research design was adopted and a survey of 107 participants selected randomly from IT firms in Kenya was used. Data was collected using closed ended questionnaires and analysed using both descriptive and inferential analysis using SPSS. Based on the findings, the correlation data analysis established that all the five factors had a positive significant association with firm performance. Secondly, from the hypotheses, it was found that all the four TQM factors had a positive and significant effect on firm performance. Specifically, organizational leadership, customer focused TQM, HRM focused TQM, and strategic planning and development practices were found to have a positive, significant effect on firm performance. Third, the findings also showed that clan culture did not mediate the relationship between TQM practices and firm performance. However, positive direct and indirect effects were established. Based on these findings, the study recommended the need to understand the firm culture, and implement TQM practices that are organizational culture specific to enhance firm performance.