Total Quality, Operations Effectiveness and Competitive Advantage in Horticultural Industry in Kenya

Abstract

The study focused on Kenya’s horticultural industry and the aspects of total quality, operations effectiveness and competitive advantage. The literature shows that total quality brings forth competitive advantage. However, most of that literature has come from developed countries. Researches carried out in less developed countries have shown contradictory results, with some showing that total quality brings forth competitive advantage, while others show it does not. This study aimed at understanding these contradictions, and coming out with tangible evidence of the effect of total quality to an organization’s capability to acquire competitive advantage. Incorporating operations effectiveness to the conceptual framework brought in new grounds of study in the total quality paradigm. The context under which the study was undertaken is highlighted by the materials concerning the horticultural industry in Kenya. The industry is seen as a vibrant and important sector of the economy. The growth of the sector in the last fifteen years has been phenomenal. However, the sector is beset with numerous challenges, the biggest being one of quality. The sector, therefore, provided very fertile grounds for this study. The literature review brought out factors of total quality, operations effectiveness and competitive advantage. The case and empirical studies point positive relationships between total quality and competitive advantage. Conceptually, it was assumed that there is a relationship between total quality and competitive advantage with operations effectiveness acting as an intervening variable. The research methodology brings out the approach that the study took. All scientific practices including data validation and effective analysis were undertaken. This was to ensure replicability and validity of the research. Further, factors that were found to have very strong correlation, or scoring low corrected-item total correlation, were dropped before analysis was undertaken. The major findings are presented and discussed comprehensively. The study shows that total quality has a strong and positive impact on competitive advantage. Further, that there is a strong relationship between operations effectiveness and total quality. This brings the study to new areas of knowledge in that it is shown that bringing in operations effectiveness to the equation, enhances competitive advantage so that operations management becomes an important component in strengthening an organization’s competitive advantage. However, this enhancement is found to be more pronounced at low levels of total quality implementation and less pronounced at high levels. In the Kenyan horticultural sector, it is discovered that the level of implementation of total quality is low. However, those implementing total quality are getting competitive advantage. This finding explains the contradiction seen in studies conducted in developing countries where organizations claiming to be quality oriented have posted different results. This study shows that it is not total quality that has been posting different results, but lack of effective implementation of total quality. A crucial finding is the poor score registered on the leadership index and the tendency of taking quality certification as an end by itself. It is demonstrated that most of the certified companies do not understand the philosophy behind quality management and, therefore, cannot implement it effectively. Further, the emergence of performance measurement as a powerful principle in the total quality paradigm for enhancing competitive advantage should encourage the government of Kenya on its preoccupation with performance contracts to government institutions. However, the value that ISO 9001 certification (one of the requirements in the performance contract) is bringing to the institutions against the enormous costs incurred is not validated. The research, therefore, recommends among other things, the appreciation and understanding of the total quality philosophy or any quality management system before embarking on implementation. On theory, policy and practice, the study has the implication that that operations effectiveness should be incorporated into the total quality paradigm, institutions should be encouraged to become total quality organizations, and that at low levels of total quality implementation, firms should be encouraged to focus on operations effectiveness. Future research could take the form of a study of government institutions or firms cutting across industries that are ISO 9001 certified, their level of implementing the quality management system, and the value the system has brought to the firms.