Effect of TQM principles on performance of Indian SMEs: the case of automotive supply chain

Purpose – The purpose of this paper is to investigate the effect of Total Quality Management (TQM) principles on organizational performance in small and medium enterprises (SMEs) in Indian auto component sector. Design/methodology/approach – The paper is based on survey data collected from quality heads of 120 Auto component SMEs in India and uses correlation and regression analysis to test the relationships between quality management principles (QMPs) and organizational performance. Findings – The study provides evidence that application of TQM principles such as “Process Approach,” “Mutually Beneficial Supplier Relationship” and “Factual Approach to Decision-Making” has a positive influence on the performance of Indian auto component SMEs. Practical implications – This study presents a number of managerial implications, specifically for quality managers in Indian auto component SMEs. The focus of these organizations should be on strengthening the supply chain and operations. The quality managers need to...