Research

Leadstar College of Management and Leadership
(Ashland University Collaboration)
The Impact of Quality management in export performance

In the case of Ethiopian Textile & Garment Industry
By
Sintayehu Hailemariam Hassen
June, 2017
The impact of Quality Management in export performance: the case of Ethiopian Textile & Garment Industry
Leadstar College of Management and Leadership

(Ashland University collaboration)
The Impact of Quality management in export performance

In the case of Ethiopian Textile & Garment Industry
By
Sintayehu Hailemariam Hassen
Advisor
Merga Mekuria(PhD)
A thesis submitted to the department of Business Leadership, Leadstar College of

Management and Leadership(Ashland University collaboration), in partial
fulfillment of requirement for the award of Master’s Degree in Business
Administration.
June, 2017
Addis Ababa
Sintayehu Hailemariam-2017 Page i

CANDIDATE’S DECLARATION
I the undersigned, Registration Number/I.D. Number LMBA 1246/15, do hereby declare
that this thesis is my original work and that it has not been submitted partially; or in full,
By any other person for the award of a degree in any other university or institution.
Name________________________________ Signature__________ Date__________
This thesis has been submitted for examination with my approved college supervisor
Name of the advisor_______________________ Signature ________Date__________
Sintayehu Hailemariam-2017 Page ii

APPROVAL
The undersigned certify that they have read and hereby recommend to the Leadstar
College of Management and Leadership College to accept the Thesis submitted by
Sintayehu Hailemariam Hassen and entitled “The Impact of Quality management in
export performance: In the case of Ethiopian Textile & Garment Industry” in the partial
fulfillment of the requirement for the award of a Master‘s Degree in Business
Administration specialization in Leadership.
Name of the supervisor____________________________________ Signature ________
Date____________
Name of Internal Examiner _________________________________Signature ________
Date____________
Name of External Examiner ________________________________Signature ________
Date_____________
Name of Head of Department _______________________________Signature ________
Date_____________
Sintayehu Hailemariam-2017 Page iii

ACKNOWLEDGEMENTS
First and foremost, I want to thank the Almighty God for the abundant Love, every
blessing and protection.
I would like to express my deepest gratitude to my advisor, Dr. Merga Mekuria for his
unreserved guidance, advice, critical comments, persistent help and constructive
suggestions.
I feel honored to acknowledge here tireless effort of my family specially my sister

Meseret Hailemarim and her husband Belachew Eshetu. In addition, I am so thankful to
Mulugeta Abera ,Hana Girma and Mesert Kumela for all the provisions that you shared
in my work. This thesis would not have been possible without your support.
I am also thankful to all ETIDI friends who showed me their concern for my success.
Thank you all for everything.
Finally, I would like to express my sincere thanks to the community of Ethiopian Textile
and Garment, in general for viable attractive interactions which enabled me feel at there.
Sintayehu Hailemariam-2017 Page iv

DEDICATION
This Thesis Work is dedicated to My Beloved Mother “Askale Tola”
Even if you passed away a year before, your sprit is always in my heart. I will never and
ever forget your scarification in my life up to now, particularly in ups and down journey
of my education.
I refrain to express my feeling and grief to you as you are beyond mother in my life.
Simply it is my pray that ―May GOD Mercy your Soul and Rest in Peace at Heaven‖
Sintayehu Hailemariam-2017 Page v

Table of Contents
DECLARATION ................................................................................................................ ii
APPROVAL ...................................................................................................................... iii
ACKNOWLEDGEMENTS ............................................................................................... iv
DEDICATION .................................................................................................................... v
LIST OF TABLES ............................................................................................................. ix
LIST OF FIGURES ............................................................................................................ x
ABBRIVATIONS .............................................................................................................. xi
ABSTRACT ...................................................................................................................... xii
CHAPTER ONE ............................................................................................................... 1
INTRODUCTION .............................................................................................................. 1
1.1 Background of the study ........................................................................................... 1
1.2 Theoretical Background ............................................................................................ 2
1.3 Overview of the industry ........................................................................................... 3
1.4 Statement of Problem ................................................................................................ 4
1.5 Objectives of the Study ............................................................................................. 6
1.6 Research model and questions .................................................................................. 7
1.6.1 Research Model .................................................................................................. 7
1.6.2 Research Question .............................................................................................. 7
1.7 Research Hypotheses................................................................................................. 8
1.8 Significance of the Study .......................................................................................... 9
1.9 Scope of the Study................................................................................................... 10
1.10. Conceptual Definitions ......................................................................................... 11
CHAPTER TWO ............................................................................................................ 12
REVIEW OF LITRATURE .............................................................................................. 12
2. 1 Introduction ............................................................................................................ 12
2.2 Theoretical Background .......................................................................................... 12
2.2.1 History of quality as a concept ......................................................................... 12
2.2.2 Defining Quality and Quality Management ..................................................... 15
2.2.3 Importance of quality management .................................................................. 16
2.2.4 Quality and Competitiveness ............................................................................ 18
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2.2.5 Quality Management in Textile and Garment Industry .................................... 19

2.2.6 Process of Quality Management ....................................................................... 20
2.2.7 Quality management Models ............................................................................ 22
2.3 Empirical evidences ................................................................................................ 32
2.3.1 Leadership ........................................................................................................ 33
2.3.2 Customer focus ................................................................................................. 33
2.3.3 Engagement of people ...................................................................................... 34
2.3.4 Process approach .............................................................................................. 34
2.3.5 Partnership and resource ................................................................................... 34
2.3.6 Policy and strategy............................................................................................ 35
2.3.7 Evidence based decision making ...................................................................... 35
2.3.8 Continuous improvement. ................................................................................ 36
2.4 Export Performance................................................................................................. 36
2.5 Conceptual framework of the research.................................................................... 37
2.6 Research Gap........................................................................................................... 37
CHAPTER THREE ........................................................................................................ 38
RESEARCH DESIGN AND METHODODLOGY ......................................................... 38
3.1 Research Design ...................................................................................................... 38
3.2 population and sampling ......................................................................................... 38
3.3 Data source & collection Technique ....................................................................... 39
3.4 Methods of Data Analysis ....................................................................................... 40
3.5 Reliability ................................................................................................................ 41
CHAPTER FOUR........................................................................................................... 42
DATA PRESENTATION AND ANALYSIS .................................................................. 42
4.1 Introduction ............................................................................................................. 42
4.2 Questionnaire Response Rate .................................................................................. 42
4.3 Respondents‘ Demographic Characteristics............................................................ 42
4.4 Levels of Implementation of Quality Management ................................................ 45
4.4.1 Leadership ........................................................................................................ 45
4.4.2 Customer focus ................................................................................................. 49
4.4.3. Engagement of peoples.................................................................................... 52
Sintayehu Hailemariam-2017 Page vii

4.4.4 Process Approach ............................................................................................. 55

4.4.5 Partnership and resource ................................................................................... 58
4.4.7 Evidence based decision making ...................................................................... 63
4.4.8 Continuous Improvement ................................................................................. 65
4.4.9 Export performance .......................................................................................... 68
4.5 Test and analysis to examine the relationship and impact ...................................... 71
4.5.1 Normality test ................................................................................................... 71
4.5.2 Correlation Analysis ......................................................................................... 72
4.5.3 Auto-correlation assumptions ........................................................................... 74
4.5.4 Multiple Regression result ................................................................................ 74
4.6 Summary of findings ............................................................................................... 77
CHAPTER FIVE ............................................................................................................ 79
CONCLUSIONS AND RECOMMENDATION ............................................................. 79
5.1 Conclusions ............................................................................................................. 79
5.2 Recommendations ................................................................................................... 83
5.3 Limitations of the study........................................................................................... 84
6. BIBLIOGRAPHY ....................................................................................................... 85
Sintayehu Hailemariam-2017 Page viii

LIST OF TABLES
Table 1 : Checklist of Application for Deming Award: ................................................... 25
Table 2 ISO Quality Management Principles: .................................................................. 27
Table 3 MBNQA Quality Management Principles:.......................................................... 28
Table 4 Criteria Comparison of the Main Quality Awards............................................... 32
Table 5 Cronbach Alpha value ......................................................................................... 41
Table 6 Respondents Demographic Profile Summary ...................................................... 43
Table 7 Indicating Mean Classification ............................................................................ 45
Table 8 Respondents Perception Summary on Leadership............................................... 47
Table 9 Leadership Model Summary ................................................................................ 48
Table 10 Leadership Coefficient Summary ...................................................................... 48
Table 11 Respondents Perception Summary on Customer Focus .................................... 50
Table 12 Customer Focus Model Summary ..................................................................... 50
Table 13 Customer Focus Coefficient Summary .............................................................. 51
Table 14 Respondents Perception Summary on Engagement of People .......................... 53
Table 15 Engagement of People Model Summary ........................................................... 54
Table 16 Engagement of People Coefficient Summary .................................................... 54
Table 17 Respondent‘s Perception Summary on Process Approach ................................ 56
Table 18 Process Approach Model Summary .................................................................. 56
Table 19 Process Approach Coefficient Summary ........................................................... 57
Table 20 Respondent‘s Perception Summary on Partnership and Resource .................... 58
Table 21 Partnership and Resource Model Summary....................................................... 59
Table 22 Partnership and Resource Coefficient Summary ............................................... 59
Table 23 Respondents Perception Summary on Policy and Strategy ............................... 61
Table 24 Policy and Strategy Model Summary ................................................................ 62
Table 25 Policy and Strategy Coefficient Summary......................................................... 62
Table 26 Respondents Perception Summary on Evidence Based decision making ......... 63
Table 27 Evidence based decision making Model Summary ........................................... 64
Table 28 Evidence based decision making Coefficient Summary.................................... 65
Table 29 Respondents Perception Summary on Continuous Improvement ..................... 66
Table 30 continuous Improvement Model summary ........................................................ 67
Table 31 Continuous Improvement Coefficient Summary ............................................... 68
Table 32 Respondents Perception Summary on Export Performance .............................. 69
Table 33 Ethiopian Textile and Garment six years export performance .......................... 70
Table 34 Summary of Normality Test .............................................................................. 72
Table 35 Correlation Summary ......................................................................................... 73
Table 36 Quality Management Variables Model Summary ............................................. 75
Table 37 Quality Management Variables Coefficient Summary ...................................... 75
Sintayehu Hailemariam-2017 Page ix

LIST OF FIGURES
Figure 1 Garvin Quality Management Process ................................................................. 19
Figure 2 Quality Planning Process: .................................................................................. 20
Figure 3 Quality Control Process...................................................................................... 21
Figure 4 The Juran Trilogy Diagram ................................................................................ 22
Figure 5 EFQM Excellent Model ..................................................................................... 29
Figure 6 EQA Model ........................................................................................................ 30
Figure 7 the conceptual Framework of the Research........................................................ 37
Figure 8 Factory‘s category by Product ........................................................................... 44
Figure 9 Graph indicate the export intensity of the industry ............................................ 71
Figure 10 Graph illustrating Pearson correlation relativity of variables........................... 74
Sintayehu Hailemariam-2017 Page x

ABBRIVATIONS
AGOA: African Growth and Opportunity Act
CAGR: Compound Annual Growth Rate
DP: Deming Prize
EBA: Everything but Arms (EU)
EFQM: European Foundation for Quality Management
EQA: Ethiopian Quality Award
GDP: Gross Domestic Product
GTP: Growth and Transformation Plan
ISO: International Organization for Standardization
MBNQA: Malcolm Baldrige National Quality Award
LS: Leadership
CS: Customer Focus
EP: Engagement of People
PA: Process Approach
PR: partnership and Resource
PS: Policy and Strategy
ED: Evidence based Decision Making
CI: Continuous Improvement
Sintayehu Hailemariam-2017 Page xi

Abstract
In today’s global competition and economic liberalization, quality has become one of the
important factors in achieving competitive advantages. Hence, the quality and its
continuous advancement have developed a significant meaning for todays' business..
Purpose of this study was to examine the impact of Quality Management Practices on
Export Performance of Ethiopian Textile and Garment exporters. A five point Likert
scale questionnaire was used as the key instrument of data collection and data were
obtained from 20 apparel exporters.. Eight dimensions were used to measure Quality
Management including Leadership, Customer Focus, Engagement of People, Process
Approach, Partnership and Resource, Policy and Strategy, Evidence Based Decision
Making and Continuous Improvement. The descriptive analysis, correlation and
regression analysis were used to examine the impact of Quality Management on Export
Performance and the relationship between Quality Management and Export
Performance.
Results of the study clearly indicated that all dimensions except Partnership and
Resource were significantly correlated with Export Performance. In addition,
Leadership, Customer Focus, engagement of people and Continuous Improvement were
found as the most significant dimensions that impact on export performance.
Sintayehu Hailemariam-2017 Page xii

CHAPTER ONE
INTRODUCTION
1.1 Background of the study

The globalization of the market and rapid improvement in information flow capabilities,
have made competition to be fierce worldwide. The economic globalization has an
impact both on developed and developing countries. For developed and some of
developing countries, globalization provides new opportunities for expansion and growth
through increased international marketing possibilities. For the majority of developing
countries, however, globalization brings risks due to the fact that they are unlikely to
survive in their present form without improving quality management practices (Daniel
Kitaw & Fasika Bete, 2003). To become efficient and competitive in today‘s challenging
global business environment, many countries and companies across the world have
started to realize the benefits of quality management. According to A. Mitra, quality
management, enhance the competitive position of the company in the long run, with a
concomitant improvement in proﬁts (Amitava Mitra, 2016). Quality management benefits
the organization because it represents the productive and profitable use of the
organization‘s resources (John E.Bauer, Grace L. Duffy & Russell T.Westcott, 2006).
Thereby, processes that generate high-quality products and services result in lower costs
from repair, rework, and warranty actions. High quality can lead to repeat orders from
current customers, and it often enables an organization to win an enhanced reputation and
additional orders in the market. Quality management is considered essential for an
organizations success, as well as for its relationships and partnerships with its customers
and suppliers. Birhanu and Daniel explained that, through analysis of the Ethiopian
Quality Award self-assessment report evaluation, generally, quality management practice
in Ethiopia was found to be low in all tenets including leadership, resource management,
process management, and customer satisfaction. And they mention also that, the service
industries quality management practice is weaker than that of the manufacturing
industries as measured by all the quality parameters. (Birhanu Beshan & Daniel Kitaw,
2014). In addition they suggests for any additional research in the field of quality
management in Ethiopia to increase effectiveness and efficiency of the industries and
Sintayehu Hailemariam-2017 Page 1

make them more competitive in international market. Even though most researchers have
suggested that, quality management helps to improve performance and productivity in all
manufacturing and service industries and showed their statistical evidence to back up
such claims, no research have been done regarding the relationship between export
performance and quality management in particular to textile and garment manufacturing
industry. Therefore, this study aimed at to investigate the relationship between quality
management practices and export performance of garment and textile exporters of
Ethiopia specifically, by examining the statistical estimate on how each of quality
management variables influences the export performance of the companies in global
garment and textile market, to fill the gap. Further, the research also attempt to find out
any empirical evidences regarding the relationship.
1.2 Theoretical Background

The dynamics of international strategy for apparel industry is accelerating with the
development of concepts and new demands of rapid changes in the market. Turbulent
environment, as a result of rapid development in technology and diversification
possibilities, meets the increasing needs of consumers who seek for even more original
and unified products and forces modern management to dynamic adjustment of
production–business systems and changes in the environment. Robert stated that high
quality not only puts a company on a much different competitive plane than its
counterparts but it also makes a wider variety of strategic options accessible to the
company (Robert E. Cole, 1995). Moreover, Johannes indicated that quality
improvements benefit a company both in terms of costs and revenues (Johannes
Freiesleben, 2005). Quality has been cited as a competitive priority (Hayes,R.H., &
Wheelwright,S.C., 1984), an issue of strategic importance (Garvin, D.A., 1987), and an
―order qualifier‖- a means of survival (Hill,T., 1994). Moreover, Hung and Lu, indicated
that firms producing high-quality products are active in product innovation (Liang-hung
& Luan-Yuan Lu, 2006) and Robert indicated that quality management is a promising
innovation, more accurately, it is a meta-innovation. In a world of imperfect information
and understanding, latent opportunities for performance improvement are always
abundant (Robert E.Cole, W.R.Scott, 2000). Quality management methods provide some
novel ways of converting a portion of these latent opportunities into recognized

opportunities and recognized opportunities into actual improvement. In a specific way,

M. Cammett also suggested that, the survival and growth of textile and apparel producers
increasingly depends on the ability of management to understand and manage changes in
the dynamic global environment (Melani Cammett, 2003). Thus, for most developing
countries, which tend to focus on the labor-intensive components of textile and garment
manufacturing, innovation refers to the ability to master time-saving procedures and
boost the quality and efficiency of production (Humphrey,J. & Shmitz,H., 2004).
Therefore, quality is not only one of the major determinants of competitiveness in today‘s
global market, but also a highway for innovation in which companies can‘t ignore it.
1.3 Overview of the industry

The Government of the Federal Democratic Republic of Ethiopia (FDRE) has been
working to realize a developed and prosperous Ethiopia through its Agricultural
Development Led Industrialization Economic policy. Apart from formulating the policy,
the Government has also designed various strategies meant to implement the policy. One
of the strategies which come at fore front is the Industrial Development Strategy which
gives much attention to the textile industry among others. The fact that the sector is
capital saving and labor intensive would contribute a lot towards reducing unemployment
by creating job opportunities for a number of citizens which in turn boost up the economy
of the country. Since 2010, the Ethiopian government has put effort to improve, support
and expand the textile industry, both in serving the domestic market but mainly with the
aim to export and be competitive at the global market. Data from central statistics agency
of Ethiopia has revealed, the export share of textile and garment from GDP, all industry
and all manufacturing sector reached 1.41%, 16.43% and 53.36% respectively in the year
2013/14 with a CAGR1 of 2.55. Even if, most of the researchers come to an agreement
that, Ethiopia can be placed in a comparative advantageous position in textile and
garment production due to different reasons including low labor cost, inexpensive row
material and government privileges to exporters (Yared Mesfin, 2010) (Clara Alderin,
2014), they also commonly agreed that, internal problems like low skill and ability of
1
CAGR is particularly useful to compare growth
rates from various data sets of common domain such as revenue growth of companies in the same
industry.(www. en.wikipedia.org)

managers in quality management has persist as major challenges of the industry. A study
conducted by Daniel Kitaw and Fasika Bete under the title ―Efforts Made and Problems
Encountered in Ethiopian Industries Management Practice‖, analyzes current quality
management practices in Ethiopian manufacturing industries based on 55 representative
industries all over the country. The research finding pinpoints that the level of awareness
and Quality Management and understanding of total quality management and ISO
9000:2000 Quality Management Systems was very low (Daniel Kitaw & Fasika Bete,
2003). Similarly, a research done by Tessema Belay under the title ‗Quality Related
Problems in Larger Ethiopian Manufacturing Firms‘ shows that there is much of losses
and incompetence of Ethiopian manufacturing industries due to quality related problems.
Besides he mentioned that, from all textile manufacturers 75% of them don‘t have written
quality policy (Tessema Belay, 2007).
1.4 Statement of Problem

In recent decades, the level of awareness towards quality management has increased
drastically and has gone to its peak to become a well-established field of research due to
intense global competition, increasing consumer consciousness of quality, rapid
technology transfer, and towards achieving world-class status (Arumugam V., 2008). In
response to these challenges and to facilitate the organizations in achieving higher quality
levels, many companies are implementing quality management approach and quality
initiatives for achieving sustainable competitive advantage and enhanced company
performance in global market. Past studies on the relationships between quality
management practices and performance have showed significant and positive results even
though those studies tells nothing about export performance (Abdulrahman Alsughayir,
2013) (Faisal Talib, Zillur Rahman, 2010) (Pignanelli,A.& Csillag, 2008). Conversely,
Octavian L. & Constanta C. advocated clearly that, the initiative to introduce quality
management arises from market pressures or from a conviction that a marketing
advantage will be gained from applying quality management concepts to the export cycle
(Octavian L.& Constanta C., 2008).
They further explained that, the issue of global competitiveness is often put forward as
the objective for industrial policy and this competitiveness is also recognized as the key
to gaining a greater share of the world's wealth generation, which will bring with it higher

standards of living. In the international market of today, the rivalry focuses not on price
but on quality where both consumers and suppliers everywhere are growing increasingly
conscious of the competitive potential of quality. As it has been regarded as one of
effective ways for firms to improve their competitive advantage, quality management has
been recognized as one of the important issues and generated a substantial amount of
interest among managers and researchers. As M. Hassen & A. Mukhtar, asserts, although
continuous attention given to quality management in industrialized countries including
USA, Japan, UK and other European countries, however, it is only since the last decades
that researchers have started to analysis quality management practices in developing
countries (Masood ul Hassen & Amna Mukhtar, 2012). Though, there is considerable
literature available that have evolved to examine the link between quality management
and operational performance across the globe, but still little is known about the effect of
quality management practices on company‘s export performance. In the case of Ethiopia,
this gap is substantially observed that, literature is not available within the context of
textile and garment industry, however, that most of the scholar focuses on the total
manufacturing industry (Birhanu Beshan & Daniel Kitaw, 2014) (Daniel Kitaw & Fasika
Bete, 2003) (Tessema Belay, 2007). Just as the present proves, it is clear that the changes
that took place in the global economy over the past few years have not passed without
consequences in our country especially in manufacturing organizations. According to
GTP I report bulletin, Ethiopian textile and garment industry represents only 1.41%
percent of GDP and the export performance of GTP I (2010/11-2014/15) targets of the
sub-sector it has been planned to achieve an export earnings of 1Billion USD. But, the
export earnings stood at USD 98.1 million (only 9.81%), which shows significant
improvement compared to the base year while, it is far below the 1 billion USD target set
for the end of the plan period (National Planning Commision, 2016). According to the
conclusion remarks of the report, the performance in terms of export earnings clearly
shows the underachievement during the planning period, but also the potential of the sub-
sector as a source of export growth in the years ahead. The first factor behind this
performance of the industries concerns the short fall witnessed in attracting a large
number of new and high quality export oriented private investments into manufacturing.

The second contributing factor mentioned is the productivity and competitiveness of

existing manufacturing firms. Many manufacturing export products were of lower value
added, while others were less diversified both in terms of product type and market
destination. The low level of quality and productivity as well as competitive capacity of
existing domestic firms in the global market is attributed to inefficient technology use,
lack of competitive, reliable and quality domestic input (raw materials) supply, problems
related to logistics for both import and export, high cost of transport, logistics, challenges
related to reliable supply of electricity, and financial services. Besides, the limited
organizational and managerial competency of these companies has undermined the
utilization of even the opportunities of tariff and quota free access to global markets such
as AGOA (USA) and EBA (EU) arrangements. Hence, this research endeavor to find
both empirical and statistical evidence on the issue by examining the influence of quality
management practice can have on textile and garment industry export performance; and it
therefore bridge a gap in the literature regarding quality management practice and its
attitude towards export performance in the Ethiopian textile and garment industry.
1.5 Objectives of the Study

This study was aimed at examining the impact of quality management practices in
Ethiopian textile & garment industry‘s export performance. In light with the above
general objective, the following specific objectives were listed to be addressed.
 To investigate the impact of quality management practice in the industry‘s export

performance.
 To examine the extent of the relationships between quality management practices
and export performance.
 To provides a brief review on the conceptual development of quality management
and an in-depth review on empirical studies conducted on the relationship
between quality management indicators with industry‘s export performance.

1.6 Research model and questions

1.6.1 Research Model
Based on the literature review, a conceptual framework is developed (see page 37) and
the research model is proposed to examine the extent to which the eight quality
management practices that are implemented in the textile and garment manufacturing
companies determining the export performance. The model helps to explore the
relationships between identified quality management practices and industry‘s export
performance by measuring the export intensity2 as a financial performance indicator and
other non-financial indicators. The developed research framework is employed to
demonstrate the relationship between the dependent and independent variables, through
exploring the combined direct effects of these eight quality management practices on
export performance. Therefore, in this theoretical research framework, it is demarcated
that, the independent variables are the eight identified quality management practices and
a dependent or explained variable is the firm‘s export performance.
1.6.2 Research Question

The main purpose of this study was to investigate the relationship between quality
management practice and export performance in the case of Ethiopian Textile and
Garment Industry. Therefore, the study was focused to answer the following key three
research questions:
1. What are the overall relationships among the identified quality management practices
with respect to export performance?
2. Do the identified quality management practices have significant positive relationship

with firm‘s export performance?
3. What is the perception of the industry‘s management body towards the impact of
identified quality management dimensions on export performance?
2
Export Intensity: is a proportion of production output to export, as evidenced by the percentage of export
to the firm’s total sales.

1.7 Research Hypotheses

A joined evaluation of the body of knowledge produced by the empirical researches
shows relationships between quality management practice and export performance in
many way, while on the other hand some relevant researches cannot show these
relationships in specific to the textile and garment industry. Empirical analysis done by
Pignanelli & Csillag , illustrate that, most of the previous studies report that overall
identified quality management practices have significantly positive relationship with
productivity and firm profitability, even though, this profitability and productivity isn‘t
explained in detail with respect to global market share (Pignanelli,A.& Csillag, 2008).
Researches with Ethiopian manufacturing context shows, quality as emerging key issue
in most of the manufacturing industries and so they have started implementing quality
management to cope up with pressures from foreign competitors and improve their
competitiveness (Haile Yeshanew & Satya Raju R., 2016).
Therefore, the objective of this study was to examine this important relationship between
quality management practices elements and export performance. Based on the literature
review, a research framework is developed to illustrate this relationship. In this
framework, quality management practices are independent variables, whereas,
organizational export performance is a dependent variable and these relationships deal
with main hypotheses below. Thus, a comprehensive review of literature suggests
the extent of implementation of eight quality management practices in the business
industries. Despite of the fact that, there exists a number of quality practices in the world,
but, only selected eight practices was employed in this research. The selection is done
after reviewing the commonly used principles and models amongst globally recognized
quality management awarding organizations. Accordingly, the next hypotheses are
suggested by the researcher regarding the directional relationship between quality
management practice and export performance, as it‘s a statement of the research
question in a measurable form.
H 1: There is a significant positive relationship between overall identified quality

management practices with industry export performance.

H 1.1: Leadership for quality management practices has a significant positive

relationship with export performance.
H 1.2: Customer focus for quality management practices has a significant positive
H 1.3:Engagment of peoples for quality management practices has a significant

positive relationship with export performance.
H 1.4: process approach for quality management practices has a significant positive
H 1.5: partnership and resource for quality management practices has a significant
H 1.6: policy and strategy for quality management practices has a significant positive
H 1.7: Evidence based decision making in for quality management practices has a
significant positive relationship with export performance.
H 1.8: Continuous improvement for quality management practices has a significant

To understand the relationship of each of quality management practice with export

performance of on textile and garment industry, these hypotheses was applied and finally
tested for their significance level. The simple symbolic representation of hypothesis
model is also showed in conceptual framework of this proposal as figure 7.
1.8 Significance of the Study

Recently, the global environment is changing faster; competition between organizations
is increasing especially for manufacturing industry. With the increasing competitive, and
dynamic customer-oriented environment, quality management practices has been
recognized as one of the important issues and generated a substantial amount of interest
among managers and researchers, and quality management has been regarded as one of
effective ways for firms to improve their competitive advantage.

In Ethiopia, the textile and apparel industry has been identified as key engine for
economic growth since it has a potential to provide employment and can contribute to
gross domestic production as well as poverty reduction scheme of the country. This study
is proposed some interventions areas and addresses the deep-rooted problems that hinder
the export development of the sector with respect to quality management. The result of
this study would be taken as a necessary input for the internal stakeholders in the sector
to accelerate export performance of the industry.
1.9 Scope of the Study

There is a huge potential on textile and garment industries that produce for the domestic
market in improving the overall textile and apparel industry performance and in
developing the country‘s economy. However, this study was focused on those domestic
market focused factories. The study mainly devoted itself on those textile and garment
industries engaged in export market only. The export performance in this study is also
measured in terms of export intensity and other non-financial indicators, and the time
reference for export data is limited from 2011/12 to 2015/16. Despite the fact, there are a
total of forty different size manufacturer exporters of textile and garment, because of their
geographical disparity, the limited time and costs of data collection the study selected
twenty factories as a sample from each strata formed based on their product type. The
study is limited to the assessment of the impact of quality management practices on
industry‘s export performance; and it is assumed that the quality management practice
mainly understood and practiced by the management staffs of the factory, hence, the
research consider the industry‘s top management members, who have a closed affiliation
with quality management practices as a target respondent, which embraces the general
manager, marketing manager, and production manager of each firm.

1.10. Conceptual Definitions

Quality Management: refers a management activities and functions involved in
determination of quality policy and its implementation through means such as quality
planning and quality assurance, including quality control (Business dictionary , 2016).
Export Performance: is defined as the extent to which firm‘s objectives, both strategic
and financial, with respect to exporting a product to a market (Calvusgil, S.T. and Zou,
S., 1994).
Export Intensity: is refers to the proportion of production output to export, as evidenced

by the percentage of export to the firms total sales (Katsikeas,C.,Leonidou,L. and
Samiee,S., 2000).

CHAPTER TWO
REVIEW OF LITRATURE
2. 1 Introduction
This literature review is aimed at describing the fundamental concepts and principles that
the research is based upon, and to find out the gaps and limitations in the body of
knowledge of quality management with respect to export. Starting from the historical
development of quality, the review includes important definitions, importance of quality
management, quality management in textile and garment industry context, process of
quality management, models of quality management, empirical evidences and finally the
conceptual framework of the research.
2.2 Theoretical Background

2.2.1 History of quality as a concept
The concept of quality is an integral part of human activity. Conceptually, there are three
hypotheses to the origin and development of quality. The first is that quality is a recent
development which evolved from pre and post classical management theories. The
second is that quality is an outcome of a revolutionary scientific development. . The third
is that quality is an evolutionary development of quality inspection. The details follow:
Early management theory consisted of numerous attempts at getting to know industrial

life before the nineteenth century. Among others, the contributions of Adam Smith
(1723—1790) on division of labor, Robert Owen (1771—1858) on working conditions,
and Max Weber (1864—1920) on bureaucracy are the milestones of industrial
management in the early period industrial development. The beginning of the 20th
century witnessed the developed classical management theories. Major contributors were
Frederick W. Taylor (1856—1915) on scientific management, Henry L. Gantt (1861—
1919) on the incentive system, Henri Fayol, (1841-1925) on modern management, and
Mary Parker Follett (1868—1933) on group work.
In the period between 1930 and 1960, behavioral management theory was dominant.
Outstanding contributors were Elton Mayo (1880—1949) on the Hawthorne
Experiments, Abraham Maslow (1908—1970) on needs hierarchy, and Fredrick

Herzberg on motivating and hygiene factors. After the Second World War different
management theories were developed. Management science, system approach,
contingency approach and dynamic engagement were the most important management
theories by the end of the 20th centuries. Quality Management is considered as one of
the dynamic dimensions of management, since quality is always a moving target.
The second approach is based on Thomas Khun‘s theory of scientific advancement i.e
scientific development is revolutionary but not evolutionary. According to Kevin Dooley,
Thomas Khun‘s theory proposed three periods within the revolution of quality
management pre-industrial paradigm of quality assurance, an industrial paradigm of
quality control, and a post-industrial paradigm of total quality management. This model
suggests that each paradigm was the result of the discipline's adaptation to environmental
contingencies (Dooley Kevin, 2000).
The third argument emphasizes that the concept of quality started as early as human
existence. But quality management movement started in Japan during the 1950s. In the
1980s, it became increasingly popular in the United States and Europe most likely as a
result of the success of Japanese firms in a number of global markets. Since the 1990s,
quality management becoming one of the main issues in many organizations and was
widely accepted. However, these organizations categorize the development of quality
management into four stages as explained below (Birhan Goshem, 2009).
 Quality inspection
 Quality control
 Quality assurance, and
 Quality management
Quality Inspection
Quality management starts with simple inspection-based system. Under such a system,
one or more characteristics of a product are examined, measured or tested, and compared
with specific requirements to assess its conformity. This system is used to appraise
incoming products, manufactured components and assemblies at appropriate points in the
production process. It is undertaken mainly by staff members employed specifically for

this purpose. Products which do not conform to specification may be scrapped, reworked
or sold as lower quality items. In some cases, inspection is used to grade the finished
products. The system is an after-the-fact screening process with no prevention content:
but perhaps the identification of suppliers, operations, or workers manufacturing non-
conforming products. Simple inspection-based systems are usually wholly in-house and
do not directly involve suppliers or customers.
Quality Control
Under a system of quality control, product-testing and documentation control become the
ways to ensure greater process control and reduce non-conformance. Typical
characteristics of such systems were performance-data collection, feedback to earlier
stages in the process, and self-inspection. While screening, inspection was again the main
mechanism for preventing products which were outside the specification from being
shipped to customers. Quality control measures led to greater process control and a lower
incidence of non-conformance.
Quality Assurance
The quality assurance stage came with the change away from product quality towards
system quality. In this stage, an organization sets up a system for controlling what is
being done and the system is audited to ensure that it is adequate both in design and use.
A major part of this change is the use of both second-party and third-party audits to
assess the efficiency of the system. The major characteristics of this stage are the use of
quality manuals, procedures, work instructions, quality planning, quality audits, etc. The
fundamental difference is that quality assurance is prevention-based while quality control
is inspection-based.
Quality Management
Quality management stage is the highest level involving the application of quality
management principles to all aspects of the business. Typical of an organization going
through a total quality process would be a clear and unambiguous vision, few
interdepartmental barriers, time spent on training, excellent supplier and customer

relations and the realization that quality is not just product quality but also the quality of
the whole organization including sales, finance, personnel and other non-manufacturing
functions.
2.2.2 Defining Quality and Quality Management

Quality and quantity are two important issues in man‘s day-to-day activities. The right
quantity might be arguable but the right quality is absolutely always high. Quality of
products/services is a standard of all time. Nowadays where competition is fierce, quality
is not only the prerequisite but it also becomes a survival kit for all organizations in the
world. The term quality comes from the Latin word “qualitas” which means an attribute
or a property. However, scholars‘ definitions remain controversial. Feigenbaum describe
quality as ―the total composite product and service characteristics of marketing,
engineering, manufacture and maintenance through which the product in use will meet
the expectations of the customer‖ (Feigenbaum,A.V, 1961). This definition is imperative
because it brings into consideration departments other than manufacturing which
contribute to the quality of product and service provided by the company to meet the
expectation of the customer. According to W. E. Deming, quality is all about reducing
variation-precision and accuracy of production. He identified that there are natural and
assignable variations. The former are unavoidable variation and the latter one is
avoidable variation (Edward Deming W., 1982). Philip. B. Crosby believes that quality
is ―Conformance to requirements or specification and reliability as a test of quality‖
(Crosby P.B., 1984). According to this definition, once a specification is established,
quality can be said to be a matter of ensuring conformance to specification. It sets a level
which is considered to be ‗good enough‘ and it results in an emphasis on inspection. All
the work goes into ensuring that nothing goes out of the specification. Taguchi also
define quality as the loss a product causes to society after being shipped (Taguchi, G.,
1986). Recent study by Florian P & Roland Jochem, on quality shows the definition of
quality exceeds the conformance of specific requirements. Reliability and perceived
quality are becoming increasingly important (F. Pasch & R. Jochem , 2016). M. J. Juran
defines quality as ―fitness for use‖ a utility value concept, which varies from one
customer to another. His concept reflects meeting customer‘s needs and is based on the
following five quality characteristics: technological, psychological, time-oriented,

contractual, and ethical (Defoe, J.A. and Juran, J.M., 2010). Davis, S.B. express quality
as a dynamic state associated with products, service, people, processes and environment
that meets or exceeds expectations and helps produce superior value (Davis, S.B., 2010).
This definition of Davis is a reasonable attempt to draw together the themes of a number
of definitions of quality and create a unifying definition. The most remarkable addition to
this definition is the idea of dynamism. By this mean, the acceptable levels of quality are
not fixed, but changing with customer‘s experience and view of the world. The last
advanced definition given by ISO 8402-1986 standard is "the totality of features and
characteristics of a product or service that bears its ability to satisfy stated or implied
needs." (Standardization, International Organization for, 2016)
Therefore, from these verdicts, many researchers relate quality to customer satisfaction.
In general, therefore, quality can be defined as ―exceeding customers‘ expectation not for
once but continuously.‖
2.2.3 Importance of quality management

Quality management affects all of an organization‘s stakeholders. The customers,
organization itself, employees, suppliers, and the community benefit from strong quality
performance. (John E. Bauer. Graceh Duffy , 2006)
From the customer’s view- According to American quality glossary, customer
satisfaction has been defined as meeting or exceeding the customers‘ requirements for
product and service features, price, timeliness, and performance. Result of delivering a
product or service that meets customer requirements (Don Siebels, 2004). Effective
quality management system benefits the customer by reducing lead time and by
producing better much to the customer‘s requirement with a fewer defect that results high
customer satisfaction (York, K.M and Miree, C.E, 2004).
From Employees view- Effective quality management benefits the employees involved in
producing high-quality products and services by enhancing their feeling of
accomplishment in knowing they have done their jobs to the best of their ability. By
participating in the development of the organization‘s processes, employees can see their
experience, skills, and ideas being put to use for the benefit of everyone in the
organization. (John E. Bauer. Graceh Duffy , 2006). Deming suggests that all people
want is the chance to do good job and to know when they have done it. Motivated

workers are seen as much more effective in delivering good quality and customer
satisfaction. Richard Branson is quoted as saying:-
“If you look after your internal customer you don’t have to worry about your external
customer”
From the company’s view- Effective quality management system benefits the
organization because it represents the productive and profitable use of the organization‘s
resources. Processes that generate high-quality products and services result in lower costs
from repair, rework, and warranty actions. Improved quality can lead to repeat orders
from current customers, and it often enables an organization to win an enhanced
reputation and additional orders in the market. The lack of a quality system can create
the need for extensive rework, repair, and warranty actions. These actions add extra costs
and delays and reduce the productivity of the system. Imai M. expresses it as, ―Good
quality may cost money, too, but in most cases the costs of poor quality exceed cost of
good quality‖. Good quality can be a very powerful marketing tool (Imai,M., 1986). This
proactive style of management will result in a much more profitable organization than a
style that only reacts to problems. It greatly increases the probability of the organization‘s
survival. (John E. Bauer. Graceh Duffy , 2006)
From the suppliers view- Organizations with efficient quality management, work closely
with their suppliers and share information to ensure that the suppliers fully understand the
organization‘s requirements and that the organization knows the capabilities of their
suppliers (Slack, N., Chambers, S. Johnstone, R. & Betts,A, 2006). Suppliers benefit
from working with quality organizations because of the close partnerships that the
organizations and the suppliers establish to accomplish their mutual goals. Bauer J.E &
Duffy G. suggested that a good supplier–organization partnership tend to have a common
set of characteristics, which includes: Reduced cost of inspections, Less-frequent
customer audits, open sharing of organization and supplier quality information, frequent
visits to both the organization‘s and the supplier‘s facilities to ensure mutual
understanding of each party‘s relative responsibilities, supplier shipments of materials
directly to the organization‘s production line for immediate use, decreased expenses from
cost sharing, and reduced risk to the organization because of its ability to use the

supplier‘s knowledge and skills to improve its product or service. (John E. Bauer. Graceh
Duffy , 2006)
From the community view- The communities in which high-quality organizations
operate, share in the benefits just mentioned. Successful employees, organizations, and
suppliers are taxpayers. They contribute to the community by stabilizing the economy.
Think of the many communities and regions that have been devastated by the failure of
organizations and industries. The quality, productivity, and competitiveness of high
quality organizations directly affect the viability of the communities they occupy.
Communities are very aware of the benefits of having high-quality organizations. Many
state and local government jurisdictions provide incentives, including training and
consulting, for organizations to fully develop their potential and to assist employees in
gaining the necessary training and skills to work in the highly competitive environment
of today‘s economy (John E. Bauer. Graceh Duffy , 2006).
2.2.4 Quality and Competitiveness

There is a strong underlying suggestion in the quality management literature that quality
is the best and, in many instances, only dimension through which competitive advantage
can be achieved (Crosby P.B., 1984) (Edward Deming W., 1982). Higher product quality
is required for a company to become more competitive, both locally and in international
trade. Improved quality at the enterprise level lowers its cost of operations 'and increases
its productivity. The firm's ability to produce better products at a reduced (or even the
same) price boosts its market share The benefits that accrue from improved quality at
individual firm level also augment national competitiveness (Daniel Kitaw & Fasika
Bete, 2003). Hence, many world-class firms and nations use quality as a powerful
competitive tool. Robert, indicated that quality management is a promising innovation,
more accurately, it is a meta-innovation (Robert E. C, 1995). Quality management
methods provide some novel ways of converting a portion of these latent opportunities
into recognized opportunities and recognized opportunities into actual improvement.
Over the years, managers have witnessed it in different forms - statistical quality control,
total quality control, total quality management, etc. There is a strong underlying
suggestion in the quality management literature that quality is the best and, in many
instances, only dimension through which competitive advantage can be achieved

Figure 1 Garvin Quality Management Process: (adapted from Garvin3)
2.2.5 Quality Management in Textile and Garment Industry

Quality in the 21st century is different than it was in the previous century. Rapid
developments in international competition have obliged textile enterprises to take new
approach in order to gain a competitive advantage (Mazedul Islam & Adnan Maroof
Khan, 2013). An increased emphasis on building quality into the product and service puts
greater emphasis on quality management. Ruth E. Glock & Grace I. Kunz explain the
significance of quality management in fashion manufacturing as more effective
application of quality management system is essential to meet quality standards and
reduce turnaround time (Ruth E. Grock & Grace I. Kunz, 2005). Bester field, explain
effective quality management in terms of cost cutting for better global market
competition and he called this matrix as quality paradox. Bester F. also recommends that,
the value of quality management might be determined by using a series of quality cost
index (Besterfield, D.H., 2000). A recent study in the industry confirms that an excellent
quality environment can be created through a true culture where every employee should
have a passion to imbue rather than simply follow mundane rule-based techniques, such
as quality control tools or imitation of best procedures. Creating passion through
leadership emphasis, message credibility, peer involvement, employee ownership, and
autonomy may substantially reduce the cost of poor quality (Srinivasan,A. Kurey B.,
2014).
3
Garvin, D.A (1987), Competing on the Eight Dimensions of Quality: Harvard Business Review, Vol. 65 No 6,
pp 10-109

2.2.6 Process of Quality Management

Many organizations try to implement quality management with campaign however, they
fails to make a difference because most of them don‘t know what action and process to be
followed in quality improvement. For most organizations especially in developing
nations, quality management implementation is nothing less than transformation of the
culture of the business. Therefore, as with any strategic activity the direction of travel is
crucial and needs to be articulated as clearly as possible. M.J. Juran suggests the three
processes of quality management which are closely interconnected.
Quality planning
John F. Early & O.J Coletti defines quality planning, as a structured process for
developing products (both goods and
services) that ensures that customer needs
are met by the final result (John F. Early &
O. John Coletti, 1999).
American Society for Quality defining

quality planning as the process of
developing a master plan linked to
organizational strategy, goals, and objectives
that pertain to the quality of products or
services to be delivered to customers. Figure 2 Quality Planning Process: (adapted from Juran
Handbook of Quality Management 5th Edition)
The quality plan includes key requirements,

performance indicators, and commitment of resources to ensure that customer needs are
met (John E. Bauer, Grace L.Duffy & Russel T, Westcott, 2006). Juran‘s quality
planning consists of a universal sequence of events—a quality planning roadmap after
identify the customers and their needs (Joseph M. Juran & A. Blanton Godfrey, 1999).
Most of the authors agree that, quality planning provides the process, methods, tools, and
techniques for closing each of these component gaps and thereby ensuring that the final
quality gap is at a minimum.

Quality control
Quality control is one of the three basic managerial processes through which quality can
be managed. Juran describes quality control as it is a universal managerial process for
conducting operations so as to provide stability to prevent adverse change and to
―maintain the status quo.‖ (Joseph M. Juran & A. Blanton Godfrey, 1999) To maintain
stability, the quality control process evaluates actual performance, compares actual
performance to goals, and takes action on the difference. Quality control is essential to
building a successful business that delivers products that meet or exceed customers‘
expectations. It also forms the basis of an efficient business that minimizes waste and
operates at high levels of productivity.
Quality Improvement
Quality improvement means the organized

creation of beneficial change; the attainment of
unprecedented levels of performance. As
Deming pointed out some time ago, ―Putting
out the fires in a hotel doesn‘t make the hotel
any better.‖ As he states in Out of the Crisis,
―Putting out fires is not improvement of the
process (Edward Deming W., 1982). Neither is
discovery and removal of a special cause
detected by a point out of control‖.
Figure 3 Quality Control Process: (Adapted from
This only puts the process back to where it Juran Handbook of Quality 5th Edition)
should have been in the first place. Quality

improvement requires action at all levels of the organization. As per Juran, quality
improvement is a disciplined approach that improves the level of performance of the
process. This is achieved by a breakthrough improvement in performance; when a new
innovation or a completely fresh idea is brought into improve the current performance
levels. This ensures that the new levels of performance are achieved, and then quality
control mechanisms are in place to sustain that effectively. Generally, he illustrated it as

Juran Trilogy, an approach to cross-functional management, which is composed of three

managerial processes: quality planning, quality control, and quality improvement. It
simply explained as, without change, there will be a constant waste, during change there
will be increased costs, but after the improvement, margins will be higher and the
increased costs get recouped.
Figure 4 The Juran Trilogy Diagram: (Adapted from M. Juran4)
2.2.7 Quality management Models

Quality management theories and teachings hold an important place in the world of
science and critical thinking, serving as the foundation for virtually every contemporary
school of quality control, management theory and leadership philosophy. They have been
studied, discussed, taught and put into practice by hundreds of thousands of people
working in tens of thousands of different businesses, government agencies, nonprofit
organizations and educational institutions around the world. An extensive literature
review of the previous studies on quality management models has shown what constitutes
quality management practices and, these key practices for the success of quality
management helps to develop framework for this study. Many researchers and institutes
have identified numerous critical success factors and criteria that affect an organization‘s
quality position. These studies have provided different sets of practices considered
essential to the impact of quality management practice over firm‘s productivity and
profitability. In Brah‘s study, the following eleven constructs of quality management
4
J. M, 1989, the Quality Trilogy: A Universal Approach to Managing for Quality, Juran Institute, Inc.,
Wilton, CT.

were identified: top management support, customer focus, employee involvement,

employee training, employee empowerment, supplier quality management, process
improvement, service design, quality improvement rewards, benchmarking, and
cleanliness and organization (Brah, S. A., Wong,J.L. and Rao, B.M., 2000). Kanji and
Wallace, go on to identify ten quality management practices: top-management
commitment, customer focus and satisfaction, quality information and performance
measurement, human resource management, employee involvement, teamwork, process
management, quality assurance, zero defects, and communication (Kanji, G.K &
Wallace, W., 2000). In a similar attitude, Mellat incorporated the thirteen quality
management constructs proposed to evaluate the effectiveness of quality management
practices (Mellat P., M Adem, S.G. and Jones, E.C., 2007). According to Bayraktar,
study, the following critical success factors of quality management were identified:
leadership, vision, measurement and evaluation, process control and improvement,
program design, quality system improvement, employee involvement, recognition and
award, education and training, and customer focus (Bayraktar, E. and Tatiglu, E. and
Zaim, S., 2008). Similarly F. Talib and Rahman found nine important quality
management practices in their literature review on service industries: top-management
commitment; customers focus; training and education; continuous improvement and
innovation; supplier management; employee involvement; employee encouragement;
benchmarking; and quality information and performance (Faisal Talib, Zillur Rahman,
2010). On the other hand, Masood ul Hassan, study focuses on the seven quality
management practices: Top management‘s commitment to quality, Employee
involvement, Customer focus, Fact-based management, Incentive and recognition system
process, Monitoring and control, Continuous improvement (Masood ul Hassen & Amna
Mukhtar, 2012). Ali B. Jaafreh, research investigates six quality management practices
listed as top management (leadership), customer focus, process management and
organizational performance, supplier quality, and employee relation (Ali B. Jaafreh,
Abedalfattah Z. Al-abedallat , 2013). Moreover, a very recent study conducted by E.
Sadikoglu and H. Olcay, study also analysis eight quality management factors as
leadership, knowledge and process management, training, supplier quality management,
customer focus, and strategic quality planning (E. Sadikoglu and H. Olcay, 2014). All

the above studies have shown their point of argument on each of the principles in relation
to quality management. In addition to this there are quality awards designed to support in
the development of organizational excellence and to recognize organizations for their
achievements in quality and performance. It is also amid at raising awareness about the
importance of quality and performance excellence as a global competitive edge (Birhanu
Beshan & Daniel Kitaw, 2014).
a) The Deming Prize (DP)

The Deming Prize is a global quality award that recognizes both individuals for their
contributions to the field of Total Quality Management and businesses that have
successfully implemented Total Quality Management. It is the oldest and most widely
recognized quality award in the world (Evans, James R; Lindsay, William M, 1993). It
was established in 1951 by the Japanese Union of Scientists and engineers (JUSE) and it
was named after W. Edwards Deming. He brought statistical quality control methodology
to Japan after W.W.II. Its principles are a national competition to seek out and commend
those organizations making the greatest progresses each year in quality. The prize has
three award categories. They are Individual person, the Deming Application Prizes, and
the Quality Control Award for factory. The Deming Application prizes are awarded to
private or public organizations and are subdivided into small enterprises, divisions of
large corporations, and overseas companies.

Principle Core concept Principle Core concept

(1)Policy  Policies pursued for management quality, and quality (6)Standardization  Systematization of standards & utilization of standards
control
(2) Organization and  Explicitness of the scopes of authority and (7)Control  Systems for the control of quality and such related matters as
its Management
responsibility, appropriateness of delegations of cost and quantity, control items and control points, utilization
authority, interdivisional cooperation & utilization of of such statistical control methods as control charts and other
QC Circle activities statistical concepts
(3)Education and  Education programs and results & quality- and (8)Quality  Procedure for the development of new products and services
Dissemination
control-consciousness, degrees of understanding of Assurance (analysis and upgrading of quality, checking of design,
quality control, teaching of statistical concepts and reliability, and other properties), customer satisfaction,
methods, and the extent of their dissemination & instrumentation, gauging, testing, and inspecting, quality
system of suggesting ways of improvements and its assurance system and its audit, utilization of statistical
actual conditions methods & evaluation and audit of quality
(4)Collection,  Collection of external information, transmission of (9)Results  Measurements of results, substantive results in quality,
Dissemination and
information between divisions, speed of information services, delivery time, cost, profits, safety, environments,
Use of Information of
Quality transmission & data processing statistical analysis of etc., intangible results& measures for overcoming defects
information and utilization of the results
(5)Analysis  Selection of key problems and themes, Propriety of (10)Planning for  Grasp of the present state of affairs and the concreteness of
the analytical approach, Utilization of statistical the Future the plan, measures for overcoming defects, plans for further
methods, linkage with proper technology, utilization advances & linkage with the long-term plans
of analytical results& assertiveness of improvement
suggestions
Table 1 : Checklist of Application for Deming Award: (Adapted from the application Guide for Deming Prize, The Deming Prize Committee)

b) ISO Quality Management Awards

International Organization for Standardization (ISO) was established in 1947 in Geneva,
Switzerland. The mission of ISO is to promote the development of standards and other
related activities in the global market, to simplify the international exchange of goods and
services and to develop co-operation in the spheres of intellectual, scientific,
technological and economic activities (Standardization, International Organization for,
2016). ISO 9000 is a set of international standards on quality management and quality
assurance developed to help companies effectively document the quality system elements
to be implemented to maintain an efficient quality system. The ISO 9000 series has now
become the QMS model recommended by the followers of the quality movement as a
benchmark for implementation of good management and process control in a variety of
industries and sectors. The first series of ISO 9000 developed by the International
Organization for Standardization-Technical Committees (ISO-TC 176) in 1987, was
updated in 1994 and 2000, with the latest version of this standard being ISO 9001:2008.
ISO created the Quality Management System standards in 1987. They were the ISO
9000:1987 series of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO
9003:1987; which were applicable in different types of industries, based on the type of
activity or process: designing, production or service delivery. The standards are reviewed
every few years by the International Organization for Standardization. The last major
revision was in the year 2008 and the series was called ISO 9000:2000 series. The
Quality Management System standards created by ISO are meant to certify the processes
and the system of an organization, not the product or service itself (Standardization,
International Organization for, 2016). They are not specific to any one industry and can
be applied to organizations of any size. It can help a company satisfy its customers, meet
regulatory requirements, and achieve continual improvement (ASQ; American society for
quality, 2016).
ISO 9000 principles of quality management
The standard is made up of five main clauses and 23 sub-clauses, each of which contains
requirements that should be fully implemented to gain the potential benefits from the
adoption of the system. In developing and maintaining ISO 9001, the collective

experience and knowledge of international experts has been used for the development of
the eight major quality management principles embedded in the ISO 9001 standard, that
can be used by management as a basis for improving an organization's performance
(Tricker,R., 2001).
Principles Core concept
(1)Customer  Understand the needs of existing and future customers, align organizational objectives
focus with customer needs and expectations & aim to exceed customer expectations
(2)Leadershi  Establish a vision and direction for the organization, set challenging goals, model
p organizational values, establish trust, equip and empower employees & recognize
employee contributions
(3)Engagement  Ensure that people‘s abilities are used and valued, make people accountable, enable
of people participation in continual improvement, evaluate individual performance, enable
learning and knowledge sharing & enable open discussion of problems and constraints
(4)Process  Manage activities as processes, measure the capability of activities, identify linkages
approach between activities, prioritize improvement opportunities & deploy resources effectively
(5)Improveme  Improve organizational performance and capabilities, align improvement activities,

nt measure improvement consistently & celebrate improvements
(6)Evidence-  Ensure the accessibility of accurate and reliable data, use appropriate methods to
based analyze data & make decisions based on analysis
decision
(7)Relationsh  Identify and select suppliers to manage costs, optimize resources, and create value,
ip establish relationships considering both the short and long term, share expertise,
management resources, information, and plans with partners & collaborate on improvement and
development activities recognize supplier successes
Table 2 ISO Quality Management Principles: (adapted from ASQ: The Global Voice of Quality)
Even if ISO is widely accepted in the quality management world, it is prone to critics.
A common criticism of ISO 9000 and 9001 is the amount of money, time, and paperwork
required for registration. According to Barnes, "Opponents claim that it is only for
documentation, Proponents believe that if a company has documented its quality systems,
then most of the paperwork has already been completed" (Barnes, Frank, 2000).
Wade argues that ISO 9000 is effective as a guideline, but that promoting it as a standard
"helps to mislead companies into thinking that certification means better quality." In
short, Wade argues that reliance on the specifications of ISO 9001 does not guarantee a
successful quality system (Wade, Jim, 2002). The standard is seen as especially prone to

failure when a company is interested in certification before quality. Certifications are in

fact often based on customer contractual requirements rather than a desire to actually
improve quality (Henricks, Mark, 2001).
c) Malcolm Baldrige National Quality Award (MBNQA)
MBNQA is US-American Award for performance excellence created in 1987. The

award is named for Malcolm Baldrige, who served as secretary of commerce from 1981
until his tragic death in a rodeo accident in 1987. His managerial excellence contributed
to long-term improvement in the efficiency and effectiveness of government. (Wikipedia
, 2016) The MBNQA is presented annually by the President of the United States to
organizations that demonstrate quality and performance excellence. Three awards may be
given annually in each of six categories: Manufacturing, Service Company, Small
business, Education, Healthcare and Nonprofit. Organizations that apply for the Baldrige
Award are judged by an independent board of examiners. Recipients are selected based
on achievement and improvement in seven areas, known as the Baldrige Criteria for
Performance Excellence:
Principle Core concept

(1)Leadership  How upper management leads the organization, and how the organization
leads within the community
(2)Strategic planning  How the organization establishes and plans to implement strategic
directions.
(3)Customer and market  How the organization builds and maintains strong, lasting relationships
focus with customers.
(4)Measurement, analysis,  How the organization uses data to support key processes and manage
and knowledge management performance
(5)Human resource focus  How the organization empowers and involves its workforce.
(6)Process management  How the organization designs, manages and improves key processes.
(7)Business/organizational  How the organization performs in terms of customer satisfaction,
performance results finances, human resources, supplier and partner performance, operations,
governance and social responsibility, and how the organization compares
to its competitors
Table 3 MBNQA Quality Management Principles: (Adapted From ASQ: the Global Voice of Quality)

d) European Foundation for Quality Management Excellence Award(EFQM)

It is an award for quality management and organizational excellence, which has been
presented since 1991 by the European Foundation for Quality Management (EFQM).
The EFQM Excellence Award is organized once a year and it is designed to recognize
Europe's best performing organizations, whether private, public or non-profit. It
recognizes industry leaders with an indisputable track record of success in turning
strategy into action and continuously improving their organization‘s performance
(EFQM, 2015). The model consists of 3 components.
 Eight core values or key management principles that drive sustainable success-:
Adding Value for Customers, Creating a Sustainable Future, Developing
Organizational Capability, Harnessing Creativity & Innovation, Leading with
Vision, Inspiration & Integrity, Managing with Agility, Succeeding through the
Talent of People & Sustaining Outstanding Results
 Nine criteria, separated into 5'Enablers' (leadership, people, strategy, partnerships &
resources, and processes, products & services) and 4 'Results' (people, customer,
society, and business results)
Figure 5 EFQM Excellent Model5
 RADAR logic, continuous improvement cycle used by EFQM. It was originally

derived from the PDCA cycle. (1)Determine the Results aimed at as part of the
5
Adapted from https://managementmania.com/en/efqm-excellence-model

strategy, (2) Plan and develop a set of Approaches to deliver the required results
now and in the future, (3) Deploy the approaches in a systematic way to ensure
implementation, and (4) Assess and Refine the deployed approaches based on
monitoring and analysis of the results achieved and ongoing learning.
e) Ethiopian Quality Award (EQA)

EQA is a quality award is designed to support in the development of organizational
excellence and to recognize organizations for their achievements in quality and
performance. It is also amid at raising
awareness about the importance of
quality and performance excellence as a
global competitive edge (EQA, 2009).
The main criteria used to evaluate
industries were leadership, policy and
strategy, resources management, process
management, customer satisfaction,
business performance and impact on the
society. A Study conducted by Birhanu
Beshah and Daniel Kitaw asserts that,
EQA is developed and designed to
accommodate quality management tenets Figure 6 EQA Model: (Adapted from Birhanu Beshan & Daniel
Kitaw, 2014)
And it is parallel with major quality
awards including DP, MBNQA, EFQM, ISO 9000:2000 quality management system and
Austrian Quality Award (Birhanu Beshan & Daniel Kitaw, 2014). The model‘s criteria
used to evaluate industries is leadership, policy and strategy, resource management,
process management, customer satisfaction, business performance and impact on the
society (Figure 6).
Comparison of major Quality Awards
Since all quality award models are derived from the tents of quality management, they
look alike. However, they have some differences in their focus area and weight of
criteria. The findings of Tan & Khoo have shown that, ISO 9000, MBNQA, EFQM

models have tried to assimilate the core concepts of total quality management by
adapting it to the organizational and social realities of their countries. Though they
maintain a basic difference in their approach about how an organization should go for
quality management, there is a general congruence between them in their understanding
of quality management in the sense that both now give emphasis to leadership, to systems
approach and both consider quality management as excellence of all organizational
processes (Tan, K.C & Khoo, H.H , 2002). In the same context, a detailed assessment of
the three main national quality awards, i.e. the MBNQA, EFQM and DP by G.A
Bohories, has shown that each model has its unique award system and set of examination
criteria, different in terms of purpose, overall approach, underlying values and concepts
represented in their frameworks, and their contributions to the practice of quality
management. But, Bohories clearly underline that, there is a similarity in the principles
behind the award criteria especially in the leadership drives the activities (such as people
management, policy and strategy, management of processes, and management of
resources) towards excellence in quality results and customers‘ satisfaction (G.A.
Bohoris, 1995).
A comparative Analysis on national and regional quality Awards by Robert J. Vokurka,
Gary L. Stading and Jason Brazeal also remarked that the quality award programs, their
models and their criteria have several objectives in common and each program
emphasizes continuous analysis and improvement and, with the exception of the DP
(which is concerned with companywide quality control for product manufacturers),
focuses on organizational quality management. The analysis also underlined on the
differences that exist in the point allocations placed on each criterion (Robert J. Vokurka,
Gary L. Stading and Jason Brazeal, 2002). Finally the analysis concluded about DP and
other rewards, unlike other national or regional quality awards, the DP does not provide a
model framework for organizing and prioritizing criteria. Instead, the evaluation includes
ten equally weighted points that each applicant must address and expert panel members
judge performance against these points. While the Deming Prize does not provide a
model, the categories emphasize values similar to those of the other award models in this
article.

Malcolm Baldrige European

ISO Quality Criteria of Foundation For
Management Performance Quality Ethiopian
Standards Excellence management Quality Award Core Concept
Leadership Leadership Leadership Leadership Leadership
Customer focus and Customer
Customer focus Satisfaction satisfaction Customer focus Customer focus
Engagement of Human resource Engagement of
People development People management People
Management of Process Process
Process Approach Process Quality management management Process Approach
Mutually Beneficial
Supplier Partnership and Resource Mutually Beneficial
Relationship resource management Supplier Relationship
System approach to Systemic quality Policy and
Management planning Policy and analysis strategy System approach
Evidence based information and Evidence based
decision making analysis decision making
Continuous Continuous
Improvement Improvement
Impact on the Impact on the
society society Impact on the society
business
business result business result performance business performance
Table 4 Criteria Comparison of the Main Quality Awards
2.3 Empirical evidences

There are a number of literatures that advice about the means and mechanisms of quality
improvement. The lack of absolute common principles, which explain the manner in
which the quality management practices in order to bring about improved organization
performance, has the problem of many researchers. As identified by Birhan B. and
Daniel K. often the literatures lack clarity and consistency on the measure to be
implemented at shop floor level. Sometimes, the literature mixes-up the causes and
effects, thereby making difficulty to decide on the measure to be implemented. For
example, in all quality rewards including EQA, except ISO 9000, both causes and the
effects of quality improvement efforts are evaluated. But, when an organization needs to
improve its performance, the starting point of analysis and intervention should be only on
the one side of causes (Birhanu Beshan & Daniel Kitaw, 2014). Therefore, based on the
above empirical facts, eight critical success factors are adopted as a quality management
construct for this study. Selection of those factors is based on the communality of the
principles in most of the awards only in the cause side. These include (1) leadership, (2)
customer focus, (3) engagement of people, (4) process approach, (5) partnership and

resource, (6) policy and strategy, (7) evidence based decision making and (8) continuous
improvement.
2.3.1 Leadership
Leadership is about establishing unity of purpose and direction in an organization. It also
involves creating and maintaining an environment where people can be fully involved in
achieving the organization‘s objectives. According to Joseph M. Juran , leadership is an
essential part of a quality improvement effort. Organization leaders must establish a
vision, communicate that vision to those in the organization, and provide the tools,
knowledge, and motivation necessary to accomplish the vision (Joseph M. Juran , A.
Blanten Godfrey, 1979). A recent review by James H. & Stephen Roper, indicate that, in
terms of exporting the role leadership in success reflecting favorable and supportive
attitudes (including perceptions, motivations, and commitment) to exporting; and, the
quality of managerial resources is indispensable (James H. Love & Stephen Roper ,
2013). Even though, those studies supports the affirmative relation of quality leadership
with the export growth of the companies, the study conducted by Daniel Kitaw & Fasika
Bete highlighted that, the management level of many Ethiopian manufacturing
companies, doesn't have strong quality sense. Further, because of their poor management
commitment in quality, most enterprises don't have their own business culture to support
total employees involvement in quality improvement. Thus the quality vision, mission
objective statement and relative measures are not clear or do not exist. When quality
conflicts with quantity, quantity is above quality and short term interest will override
long term interest (Daniel Kitaw & Fasika Bete, 2003). In contrary to this, a research in
US Apparel manufacturing companies has remarked that they are seeking effective
leadership as a weapon to combat organizational change and to succeed in today's
business arena (McCann & Jack, 2008).
2.3.2 Customer focus

Sustained success is achieved when an organization attracts and retains the confidence of
customers and other interested parties on whom it depends. Every aspect of customer
interaction provides an opportunity to create more value for the customer. Understanding
current and future needs of customers and other interested parties contributes to
sustained success of an organization. Organizations must be knowledgeable in customer

requirements and responsive to customer demands, and measure customer satisfaction

through quality management implementation (Faisal Talib, Zillur Rahman, 2010).
According to the different review results, obtaining information about customer and
maintaining a positive relationship based on customer interest is one of the most widely
used quality management implementation practices to improve export performance of
the organization (Morgan, R.M., & Hunt, S.D., 1994) (Geyskens, I., Kumar, N., 1996).
2.3.3 Engagement of people

To manage an organization effectively and efficiently, it is important to involve all
people at all levels and to respect them as individuals. Recognition, empowerment and
enhancement of skills and knowledge facilitate the engagement of people in achieving
the objectives of the organization. Deming claimed that involvement and participation
of employees at all level is must to improve the quality of the current and future product
or service. Even non-managerial employees can make significant contributions when
they are involved in quality improvement processes, decision making processes, and
policy making issues. Organizations should utilize all employee‘s skill and abilities to
gain business performance (Faisal Talib, Zillur Rahman, 2010). Daniel Kitaw & Fasika
Bete highlighted that, in Ethiopian manufacturing Industry, most enterprises don't have
their own business culture to support total employees involvement in quality
improvement (Daniel Kitaw & Fasika Bete, 2003).
2.3.4 Process approach

Consistent and predictable results are achieved more effectively and efficiently when
activities are understood and managed as interrelated processes that function as a
coherent system. The quality management system is composed of interrelated processes.
Understanding how results are produced by this system, including all its processes,
resources, controls and interactions, allows the organization to optimize its performance.
On this concern Haile and Satya R. (2016) put their observation as- ―regular assessments
of process and procedure are not effective; maintenances of production equipment are not
performed accordingly to the plan, and companies are not well net and clean.‖
2.3.5 Partnership and resource

For sustained success, organizations manage their relationships with interested parties,
such as suppliers. Interested parties influence the performance of an organization.

Sustained success is more likely to be achieved when an organization manages

relationships with its interested parties to optimize their impact on its performance.
Relationship management with its supplier and partner network is often of particular
importance. According to Talib F., & Rahman Z., many organizations have recognized
that their competitiveness is based to a large extent on the ability to establish a high level
of trust and cooperation with suppliers (Faisal Talib, Zillur Rahman, 2010). Thus,
organizations must choose the suppliers that enable them to increase competitiveness and
export performance.
2.3.6 Policy and strategy

Strategic planning incorporates the development and deployment of plans; improve
relationships with customers, suppliers, and business partners and helps in achieving long
and short term goals through participative planning. An empirical evidence analysis by
Aaby and Slater, indicate the relevance positive relationship between firm‘s quality
strategy and policy, and export performance (Aaby & Slater, S.F., 1989). They remarked
also successful exporters have specific export policies, they plan, and they gather market
knowledge, using management systems and as for ‗Strategy‘, it is not surprising those
exporters that are more involved focus more on industrial markets and have broader
world market coverage.
2.3.7 Evidence based decision making

Decisions based on the analysis and evaluation of data and information are more likely to
produce desired results. Decision-making can be a complex process, and it always
involves some uncertainty. It often involves multiple types and sources of inputs, as well
as their interpretation, which can be subjective. It is important to understand cause and
effect relationships and potential unintended consequences. Facts, evidence and data
analysis lead to greater objectivity and confidence in decisions made. The information
behavior of managers in exporting firm is an important factor in improving export
performance. Publications on the international market orientation emphasize the
collection, dispersion, and use of international information for decision making improves
export performance (Cadogan, J. W. & Diamantopoulos, A., 1995).

2.3.8 Continuous improvement.

Successful organizations have an ongoing focus on improvement. Improvement is
essential for an organization to maintain current levels of performance, to react to
changes in its internal and external conditions and to create new opportunities. The
empirical analysis done by Xayphone and Kogmanila, advocated the important
relationship between innovation, continuous improvement and export performance in
Garment industry (Xayphone & Kongmanila, 2009).
2.4 Export Performance

Export performance is regarded as one of the key indicators of the success of a firm‘s
operations. Even though there is disagreement about which indicators should be used to
measure the variable, most researchers accept the multidimensionality of export
performance. Cavusgil and Zou (1994) created a scale to measure export level at a cross-
national range and they conceptualize export performance using a set of premises like:
the use of an export venture level; the combination of financial and strategic export
performance and satisfaction with the export venture (Calvusgil, S.T. and Zou, S., 1994).
Similarly, Lages advocates two category export performance measurements i.e. financial
and non-financial performance. Financial performance refers to export sales intensity,
export profit intensity, and export growth. Other financial indicators are market share,
return to assets, and return to investment, export profit growth rate, and ratios of export
sales to the number of export managers and employees (Lages,L. F. , 2000). Non-
financial indicators of export performance include goal achievement, satisfaction,
perceived success, and perceived importance of a certain items of export performance
(Lages,L. F. , 2000). Lages (2000) advises to use multiple measures, since in order to
capture the complexity of the concept.
For the purpose this research Cavusgil and Zou(1994) three dimensional export
performance measurement was utilized. The financial performance dimension is used in
terms of export intensity, and three items from strategic performance dimension and three
items from satisfaction with the export venture were utilized as dependent variable to
express export performance.

2.5 Conceptual framework of the research

Based on the above literature review the conceptual framework of this study is developed
and illustrated below. The model demonstrates the relationship between quality
management practices and industry export performance through exploring the combined
direct effects of eight identified quality management practices on the dependent variable
export performance.
Figure 7 the conceptual Framework of the Research
2.6 Research Gap

In summary, the literature review have shown that there has not been a study with respect
to quality management in the sector, in spite of the fact that, most researchers prefer to
study the total manufacturing and service industries and some of the empirical evidences
also shown the positive relationship of quality management and productivity without
considering the nature of the market, i.e. whether it is domestic or international market.
Therefore, this study was meant to fill the gap mentioned.

CHAPTER THREE
RESEARCH DESIGN AND METHODODLOGY
This part of the research presents the methodology that was employed in this paper. The
research techniques & the reason for selecting the technique are discussed in detail. It
fundamentally focused on the research design, population and sampling, data source &
collection method, procedure of data collection & lastly the methods of data analysis.
3.1 Research Design

Considering the purpose of the research & the nature of the phenomenon, explanatory
research method was applied. The purpose for choosing explanatory method reliant on
the fact that, the study is intended to examine the relationship between quality
management practice & export performance as an independent and dependent variable
respectively. The variables under study are expected to have positive or negative
relationship or may not have relationship at all. The study was used quantitative research
methods, and for this purpose, questionnaires was prearranged and used.
In terms of time horizon, this study used both cross-sectional & time series data. A cross-
sectional data is a data on a particular phenomenon at a specific point of time. Thereby, in
this particular study the cross-sectional data refers to the quality management
perspectives of the management groups of factories with respect to export performance.
Furthermore, the time series data was composed to understand the five years trend of
export performance of the factories, so that, it was supposed to simplify the result to align
with the actual achievements.
3.2 population and sampling

According to the Ethiopian Textile Industry Development Institute 2015/16 annual report
the total number of medium and large scale textile and garment manufacturing exporters
in the country is 40. Out of which integrated manufacturers accounts 3(7%), garment
manufacturers accounts 28(71%), semi-integrated accounts 5(12%) and traditional close
manufacturers accounts 4(10%). Thereby, the total population for this study was defined
as the management members of these factories, who have a direct engagement with the
research issue. The above classification helps the student researcher as a stratification
factor for sampling purpose. The sampling technique selected here was two stage

sampling technique; the primary sampling technique applied was Proportionated

stratified sampling, this is due to the fact that a population from which the sample is to be
drawn constitute a heterogeneous groups, so that this sampling technique is more
efficient to obtain a representative sample by separating the population elements in to
non-overlapping groups. Proportionated sampling refers to the selection from each
sampling unit of a sample that is proportionate to the size of the unit. Advantages of this
procedure include representativeness with respect to variables used as the basis of
classifying categories and increased chances of being able to make comparisons between
strata. Due to geographical disparity of the factories, and the limited time and related
costs to collect data from all factories, proportionated stratified sampling technique
applied to select samples from each stratum and additionally it helps to make
comparisons between strata (Yogesh Kumar Singh, 2006). Based on this, half the
elements from each stratum were randomly selected. The second step that was
implemented is judgmental sampling, that is, from management member of the selected
factories the study used only those management members who best meet the purpose of
the study & this comprises the general manager, the production manager and the
marketing manager. Therefore, a total of sixty respondents were chosen for this study.
3.3 Data source & collection Technique

The study was used both secondary and primary data sources. Primary source of data was
expected to be collected via semi- structural survey questionnaire. This study
hypothesized that firms with a better practices in quality management should have
better effects on the export performance of the firm. In order to examine the actual
status of this relationship, according to the conceptual frame work of this research a total
of eight constructs which are considered to be important for effective quality
management practice implementation was be used to develop questionnaire as input. The
type of questionnaire that was applied is the five scale graded Likert scale questionnaire.
This helps to make questions more interesting to respondents and, thereby, enhance
their cooperation, ultimately to ensure maximum response rate. The questionnaire
statements was established and scored from 1 up to 5 scale, where ―1‖ indicates
―strongly disagree‖ , ―2‖ ―disagree‖, ―3‖ neutral, ―4‖ ―agree‖ and ―5‖ refers to
―strongly agree‖ with the statement to represent different attitude of respondents.

The questionnaire have three main sections, the first section covers the general
information of the respondents and on the company, the second section is attempt to
check the degree of quality management practice on the eight critical quality principles
with respect to quality management and the last section was about the export
performance measurement scale. The secondary data was also collected via detail review
of related reports, articles, journals, magazines, bulletins, on quality management in the
industry.
3.4 Methods of Data Analysis
The data gathered through questionnaires was coded, enter into computer and
analyze and presented in the form of charts, diagrams, and tables by using SPSS
software version 20. The data analysis for the research is both descriptive and inferential
type. Descriptive statistics and inferential analysis was applied for the presentation,
interpretation and discussion parts on various dimensions of the evaluation system.
Frequency tables, charts, graphs, figures, percentages and Pearson correlation were used
as appropriate to analyze, interpret, tabulate and present the result of the study. To
further understand the relationship between the variables, regression analysis was carried
out. The model took this formula:
Y= β0 + β1 χ1 + β2 χ2 + β3 χ3 + β4 χ4+ β5 χ5 + β6 χ6+ β7 χ7 +β8 χ8+є

Where: Y = Dependent Variable (Export Performance-EXP)
χ1-n= Independent variable (χ1 is Leadership-LS, χ2 Customer Focus-CF , χ3 is
Engagement of people-EP, χ4 is Process Approach-PA, χ5 is Partnership and
Resource , χ6 is Policy and Strategy-PS ,χ7 is Evidence Based decision making-
ED and χ8 is Continuous Improvement-CI)
β0 = the constant
β1-n= the regression coefficient or change included in Y by each χ
є = error term
Therefore, the research design of this study used both descriptive and inferential type of
research design. Descriptive analysis refers to statistically describing, aggregating, and

presenting the constructs of interest or associations between these constructs, while,

inferential analysis refers to the statistical testing of hypotheses (theory testing) for
quantitative data analysis that is conducted using software programs SPSS. The
student researcher examined the collected data in order to find and construct, themes and
patterns that can be used to describe and explain the phenomenon under study. Finally,
a conclusion is made based on the findings of the study and a recommendation is
forwarded on the basis of the data that was analyzed.
3.5 Reliability
Reliability refers to the extent to which the data collection techniques or analysis
procedures will yield consistent findings (Saunders,M, Lewis, P. and Thornhill, 2007).
The data reliability test is measured by using Cronbach‘s Alpha. According to William
and Barry‘s scales exhibiting a coefficient alpha between 0.80 and 0.96 are considered to
have very good reliability, between 0.70 and 0.80 are considered to have good reliability,
and alpha value between 0.60 and 0.70 indicates fair reliability and when the coefficient
alpha is below 0.60, the scale has poor reliability (William,G.Z, and Barry J. B, 2010).
Accordingly, the Cronbach‘s Alpha values of the survey indicate good reliability and the
result are presented in table 5.
Variables Cronbach’s Alpha Value N Description
Leadership 0.866 6 Reliable
Customer Focus 0.719 3 Reliable
Engagement of Peoples 0.849 5 Reliable
Process Approach 0.878 4 Reliable
Partnership and Resource 0.742 3 Reliable
Policy and strategy 0.909 4 Reliable
Evidence based decision making 0.755 3 Reliable
Continuous Improvement 0.862 4 Reliable
Export Performance 0.928 6 Reliable
Table 5 Cronbach Alpha value: (Source: Survey Result)
The Cronbach‘s Alpha range value is between 0.719 and 0.928. Therefore, all variables
are acceptable for further analysis.

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS

4.1 Introduction
The purpose of this study was to examine the impression of quality management
practices in Ethiopian textile & garment industry‘s export performance. This chapter
presents the central part of the study. Coded responses were entered into Statistical
Package for the Social Sciences (SPSS) version 20, for data analysis. This chapter is
predestined for presenting, analyzing and interpreting the data and verdicts of the
study. It entails four sections. The first section briefly describe about the respondent‘s
demographic features. The second explores the level of execution of quality management
in Ethiopian textile and garment industry by means of descriptive statistics. Thirdly, the
analysis pertaining to relationships exist in the variables is covered. And lastly, the main
findings of the research are summarized.
4.2 Questionnaire Response Rate
In order to conduct this study a total of 60 questionnaires were distributed for

management member of factories, among these questionnaires all the 60 were collected.
The response rate of all the questionnaires stood at 100%. Therefore, the analysis is done
on the 100% of response rate which is considering satisfactory to conduct the study.
4.3 Respondents’ Demographic Characteristics
This section provides a profile of respondents who involved in the study and it denotes
basic characteristics. The information generated to address the stated research objectives
is solicited from respondents with diverse demographic characteristics. This part of the
questionnaire requested a limited amount of information related to personal and
professional characteristics of respondents. Accordingly, the demographic variables
about the respondents were summarized and described in the next table. These variables
include: sex, age, number of service years of the respondents in the factory, and the
highest educational level achieved,

Respondents profile Freq. Per.

male 45 75.0
Gender female 15 25.0
Total 60 100.0
Under 25 0 0.0
25-34 47 78.3
Age 35-44 13 21.7
Above 45 0 0.0
Total 60 100.0
0-4 38 63.3
5-9 22 36.7
10-19 0 0.0
Previous experience
20-30 0 0.0
Above 30 0 0.0
Total 60 100.0
College Diploma 6 10.0
BA/BSC 48 80.0
Educational status
MA/MSC 6 10.0
Total 60 100.0
Textile Engineer 47 78.3
Industrial Engineer 5 8.3
Educational Marketing Management 5 8.3
Background
others 3 5.0
Total 60 100.0
Garment manufacturers 42 70.0
Semi-integrated accounts 6 10.0
Respondents by
Factory specialization Traditional cloth 6 10.0
manufacturers accounts
Fully integrated 6 10.0
Total 60 100.0
Table 6 Respondents Demographic Profile Summary: (Source: Survey Result)
As shown in table 6, 75% of the respondents are male and 25% were female. This tells
the majority managers are males. With respect to the age of the respondent, about 78.3%
of the respondents lay under the age between 25-34 years and next to that, the age group
categorized under 35-44 years accounts 21.7% of the respondent. This evidently
designates that the workforce composition of the respondents of the industry are young
and middle age group.

With respect to the educational status of respondents, 80% are first degree holders, 10%
and 10% of the respondent are diploma and master degree holders respectively. This
implies that almost all of the respondents are found in a good educational level that
assures as they are able to understand about quality management and its importance in
export business in achieving its intended objectives. In terms of educational background,
86.6% of the respondents were a graduate of textile engineering as field of study.
Respondents were asked about their previous work experience, and accordingly, 63.3%
of them replied as they are within 0-4 Years of experience, and 36.7% of them answered
as they are within 5-9 year of work experience. This indicates that almost all the
respondents are below 9 years of work experiences and out of which 63.3% were below 4
years of work experience, which might be a possible source of gap in thoughtfully
handling quality management in the manner that would enhance export performance.
The 60 respondents were selected from 20 factories which have different product
specialization. Accordingly, 70% of the factories selected were garment factories, and the
remaining 30 % were selected from integrated, semi-integrated and traditional cloth
manufactures.
Respondents category by factory product specialization

Fully integrated
10%
Traditional cloth
manufacturers
accounts
10%
Semi-integrated Garment
accounts manufacturers
10% 70%
Figure 8 Factory’s category by Product

4.4 Levels of Implementation of Quality Management
In order to establish the extent to which the quality management practices adopted by the
factories, it was important for the respondents to first indicate the extent to which they
assumed these management practices in their organizations. The following descriptive
statistical analysis shows the conceptual framework taken from this research. Mean for
individual question and over all mean for each eight dimensions were calculated to
analyze the implementation levels of quality management practices. For easer
interpretation of the scores mean value is summarized as follows.
Mean range category

1:00-1:80 Worse
1:80-2:60 low
2:60-3:40 Enough
3:40-4:20 High
4:20-5:00 Very High
Table 7 Indicating Mean Classification: (Adopted From (Sugiyono J., 2008))
4.4.1 Leadership
As a one instrument of leadership, respondents were asked whether they are using
organizational mission, vision, strategy to meet export performance. Only 60% were
agreed and strongly agreed on developing and using organizational vision, mission and
strategy. Conversely, 30% of the respondents were neutral and 10% were disagreeing to
the question. The mean value is 3.77, which is high according to the scale given above,
and standard deviation remains 0.963 that might be due to the diversified perception of
the respondents. Secondly, the respondents were asked whether they strive to create and
sustain shared values, fairness and ethical models for behavior at all levels of the firm.
Only 48.3% of the respondents were demonstrate their positive agreement in creating and
sustaining, shared values, fairness and ethical models in their organization as a leadership
principle. 51.7% were neutral and disagree in using of these models and the mean value
is 3.33 which possibly put under ―enough ―category. The next question presented to
respondents was whether they established a culture of trust and integrity, to eliminate fear
in their organization. Accordingly, 48.3% were agreed that they established culture of
trust and integrity to eliminate fear. However, 26.7% of the respondents disagree and they

belief that creating a culture of fear helps the organization to persuasively implement jobs
by the employees. The remaining 30% is neutral to the question. The mean value is 3.32
slightly higher than the median and the standard deviation is 1.033 which indicates the
values are spread above and below the mean due to perception differences. The
respondents were asked about whether they provide peoples with the required resource,
training and authority to act accountably. 55% of the respondents said they agree to offer
employees with all the required resource, training and authority that make the employee
accountable. While 30% was of the view that they cannot express their opinions. The
research further show that 15% of the managers said they were not provide resources and
authorities to the employee to act accountability. The mean value is 3.4, based on the
above classification, it is moderately high, and the standard deviation is 0.942.
The managers were asked whether they continuously inspire, encourage and recognize
people‘s contribution in their organization. 51.6% respondents were used to continuously
inspire, encourage and recognize people‘s contribution in their organization towards the
improvement of export performance. 48.4% of the respondents were not expressing their
opinion and have a negative agreement towards inspiration and encouragement of
employees. The mean value is 3.42, based on the above classification, it is moderately
high above the median, and the standard deviation is 0.996.
The managers were asked to confirm whether they are a positive example to the
employees in the organization. 85% of the respondents‘ were replayed as they perceive
that they are a good example at the work place. The remaining 15% were neutral and they
have not been thinking that, they are a good example in the organization. The mean value
is 4.1 and the standard deviation is 0.730.

Cum. Std.
Questions scale Freq. Per. Mean
Per. Dev.
Disagree 6 10 10
using organizational Neutral 18 30 40
mission, vision
Agree 20 33.3 73.3 3.77 0.963
strategy to meet export
plan Strongly Agree 16 26.7 100
Total 60 100
Strongly
2 3.3 3.3
Disagree
create and sustain Disagree 5 8.3 11.7
shared value, fairness Neutral 24 40 51.7 3.33 0.8
and ethical model
Agree 29 48.3 100
Total 60 100
Strongly
3 5 5
Disagree
Culture of trust and Disagree 10 16.7 21.7
integrity, to eliminate Neutral 18 30 51.7 3.32 1.033
fear Agree 23 38.3 90
Strongly Agree 6 10 100
Total 60 100
Strongly
3 5 5
Disagree
Disagree 6 10 15
provide resources, Neutral 18 30 45 3.4 0.924
training and authority
Agree 30 50 95
Total 60 100
Disagree 14 23.3 23.3
continuously Inspire,
encourage and Neutral 15 25 48.3
3.42 0.996
recognize peoples Agree 23 38.3 86.7
contribution Strongly Agree 8 13.3 100
Total 60 100
Disagree 2 3.3 3.3
Neutral 7 11.7 15
I am positive example
Agree 34 56.7 71.7 4.1 0.73
to employees
Strongly Agree 17 28.3 100
Total 60 100
Leadership 3.556 0.704
Table 8 Respondents Perception Summary on Leadership: (Source: Survey Result)

Model Summary
Adjusted R Std. Error of the
Model R R Square
Square Estimate
1 .790a 0.69 0.432 0.01173
Table 9 Leadership Model Summary: Source: Survey Result
As show in the table 9, the value of R2 is 69% that the independent variables using
organizational mission, vision strategy to meet export plan, create and sustain shared
value, fairness and ethical model, Culture of trust and integrity, to eliminate fear, provide
resources, training and authority, continuously Inspire, encourage and recognize peoples
contribution and being positive example to employees explain dependent variable 69%
and the remaining 31% variation could be explained by other explanatory variables out of
this model.
Unstandardized Standardized
Model 1
Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 0.061 0.55 0.111 0.912
Using organizational mission,
vision strategy to meet export 0.083 0.126 0.079 0.662 0.011
plan
Create and sustain shared
value, fairness and ethical 0.142 0.167 0.135 0.849 0.041
model
Culture of trust and integrity,
0.262 0.146 0.331 1.785 0.080
to eliminate fear
Provide resources, training and
0.265 0.113 0.296 1.801 0.025
authority
Continuously Inspire,
encourage and recognize 0.020 0.157 0.024 0.126 0.925
peoples contribution
I am positive example to
0.282 0.148 0.254 2.908 0.050
employees
Table 10 Leadership Coefficient Summary: (Source Survey Result)
All the independent variables excluding, creating culture of trust and integrity, to
eliminate fear and continuously inspire, encourage and recognize employee‘s
contribution were statistically significant that they determine export performance
positively as a leadership principle. As using organizational mission, vision strategy to
meet export plan, create and sustain shared value, fairness and ethical model, provide

resources, training and authority, and being positive example to employees increased by
one step in the level of importance export performance increased by 8.3%, 14.2%, 26.2%
and 28.2% respectively. Leadership is more understood by the respondent in term of
being a good model and example to the employees and providing resources, training and
authority to act with accountability. According to respondents shared values, fairness,
ethical models, less important factors and continuously inspiring, encouraging and
recognizing employee role doesn‘t have any contribution to export growth. Bass
describes leadership as it have stimulated agreement about priorities, shared values,
perceived common goals and meaningful purpose (Bass, B.M., 1995).
Generally, leadership is moderately practiced in Ethiopian textile and garment business
firms, and the study demonstrates that management has poorly involved in
developing and communicating vision, mission, goals, plan and values for quality
programs and they have poor culture of encourage and inspiring employees‘ involvement
and empowerment in quality management activities. Managers are restricted
themselves in providing resources and trainings to the employees. Auxiliary parts of
leadership like trust and integrity, creating a common values and purposes, inspiring and
recognizing employee involvement are unexploited and reflected as less imperative to the
export growth.
4.4.2 Customer focus
Customer focus dimension of quality management which was including three enquiries
brought to the respondents. The first enquiry was whether the respondents underline and
align the needs of customer‘s current and future needs in the organizations plan. 76.7%
were responding that they emphasize and make parallel plan with customers current and
future need, whereas, 16.7% were disagree and neutral to this question with the mean
value and standard deviation of 3.9 and 0.796 respectively. The second question was
whether they aimed at exceeding customer expectation. 58.3% of respondents agree in
that their intention is to exceed customer expectations. 33.3% of the managers were not
defining their view towards the meeting of customer expectations. 8.3% were disagreed
to the enquiry. The mean value and standard deviation is 3.58 and 0.766 respectively.

Questions Scale Freq. Per. Cum. Per. mean Sta. dev.
Underline Disagree 4 6.7 6.7

and align Neutral 10 16.7 23.3
the needs of Agree 34 56.7 80
customers Strongly Agree 12 20 100
current and
future needs Total 60 100 3.9 0.796
Disagree 5 8.3 8.3
Our aim is Neutral 20 33.3 41.7
to exceeded
customers‘ Agree 30 50 91.7
expectations Strongly Agree 5 8.3 100
Total 60 100 3.58 0.766
customers Strongly Disagree 3 5 5
are satisfied Neutral 35 58.3 63.3
with the Agree 22 36.7 100
relationship
we have Total 60 100 3.27 0.710
Customer
3.58 0.571
focus
Table 11 Respondents Perception Summary on Customer Focus: (Source: Survey Result)
The last question raised was whether customers are satisfied with the relationship they
have. Only 36.7% were responding that customers are satisfied with the relationship they
have. But 58.3% of the respondents were choosing neutral position. The mean value and
standard deviation is 3.27 and 0.710 respectively.
Model Summary
Std. Error of the
Model R R Square Adjusted R Square
Estimate
1 0.401a 0.361 0.327 0.66593
Table 12 Customer Focus Model Summary: (Source: Survey Result)
As show in the table 12, the value of R2 is 36.1% this describes the independent variables
including Underlining and aligning the needs of customers current and future needs,
aiming to exceed customers‘ expectations, satisfaction of customers with the relationship
they have explain the dependent variable export performance with 36.1% and the
remaining 63.9% variation could be explained by other explanatory variables out of this
model.

Coefficients
Coefficients Coefficients
Model 1 t Sig.
Std.
B Beta
Error
(Constant) -0.015 0.562 -0.026 0.979
Underline and align the needs of
customers current and future 0.412 0.114 0.404 3.606 0.001
needs
Our aim is to exceeded
-0.174 0.154 -0.164 -1.132 0.262
customer‘s expectations
customers are satisfied with the
0.584 0.16 0.511 3.649 0.001
relationship we have
Table 13 Customer Focus Coefficient Summary: (Source: Survey Result)
All the independent variables included in this model except, exceeding customer
expectation were statistically significant that they determine export performance
positively. Underlining and aligning the needs of customer‘s current and future needs,
satisfaction of customers with the relationship they have increased by one step in the
level of importance export performance increased by 41.2 % and 58.4% respectively.
According to respondents perception aiming to exceed customers‘ expectations doesn‘t
have any contribution to export growth. Respondents believed creating satisfaction to
customers in terms of relationship is more importantly affect the export performance
growth than aligning the current and future needs of customer.
Generally, in the recent fashion industry, one of the puzzling issues for most of infant
manufacturing firms in developing nations is bringing into line with the dynamics of
fashion market. The tremendously fluctuating periodic needs of the customers would
force the industries to modify their strategy sensibly and to manage the firm amenably.
As elucidated above, the Ethiopian garment and textile industry is placed at the primary
stage of development. Significant progresses have been seen in the past seven years and
the observed gain might be due to the extensive development in foreign direct investment
noticed. Conversely, a relative weight given to intensive development of firms was very
weak. Hence, coping with customer need has been much difficult and unthinkable for the
firms.

4.4.3. Engagement of peoples

Engagement of employees dimensions of quality management were comprises five
enquiries and brought to the respondents. The first enquiry was whether the managements
regularly communicate with employees to promote understanding of the importance of
their individual contribution. 40% were agreed and strongly agreed with the regular
communication towards promoting individual contribution. 45% of the respondents
remain neutral and 15% of the respondents did not believe the needs of this
communication in the promotion of individual contribution. The mean value and the
standard deviation is 3.3 and 0.962. Secondly, the respondents were asked whether they
facilitate open discussion and sharing of knowledge and experience within the
organization. Based on that, 58.3% were agreed and strongly agreed in facilitating the
open discussion and sharing of knowledge and experience. Whereas, 25% were not
clarify their perception and 16.7% were total disagreed with question. The mean value
and the standard deviation is 3.47 and 0.833 respectively. Thirdly, the respondents asked
whether they conduct survey to assess employee satisfaction and communicate the result
to take appropriate action. Accordingly, 42.6% of the respondent were agreed and
strongly agreed to conduct the survey and to take corrective action based on the result of
the survey. 36.7% were in the neutral position and 21.7% were disagreed and they don‘t
have such culture in their organization. The mean value and the standard deviation is 3.28
and 0.904 respectively. Fourthly, the managers were asked about empowering of
employees to enable them to take action without fear. 46.7% were agreed and strongly
agreed in empowering of employees to take their own action without fear. 26.7% had a
reservation on empowering of employees and again 26.7% were chosen a neutral position
to the question. The mean value is 3.35 but the standard deviation is above one that
indicates the diversified perception of managers in empowering of employees.

Cum. Sta.
Questions Scale Freq. Per.
Per. mean dev.
Strongly Disagree 3 5 5
Regularly communicate Disagree 6 10 15
with employees to Neutral 27 45 60
promote understanding of Agree 18 30 90 3.30 0.962
the importance of their
individual contribution Strongly Agree 6 10 100
Total 60 100
Disagree 10 16.7 16.7
facilitate open discussion Neutral 15 25 41.7
and sharing of knowledge Agree 32 53.3 95 3.47 0.833
and experience Strongly Agree 3 5 100
Total 60 100
Disagree 13 21.7 21.7
conduct Survey to assess
people satisfaction, Neutral 22 36.7 58.3
communicate the result Agree 20 33.3 91.7 3.28 0.904
and take appropriate Strongly Agree 5 8.3 100
action
Total 60 100
Disagree 16 26.7 26.7
Neutral 16 26.7 53.3
Empower employees to Agree 19 31.7 85
enable to take action 3.35 1.039
without fear Strongly Agree 9 15 100
Total 60 100
Disagree 11 18.3 18.3
Recognize and Neutral 19 31.7 50
acknowledge employees Agree 24 40 90 3.42 0.907
contribution ,learning and
improvement Strongly Agree 6 10 100
Total 60 100
Engagement of people 3.36 0.735
Table 14 Respondents Perception Summary on Engagement of People: (Source: Survey Result)
The last question with respect to engagement of employees was whether they recognize
and acknowledge employees contribution, learning and improvement. Accordingly, 50%
agreed and strongly agreed towards the application of this opinion. 31.7% remains neutral
and 18.3% were disagreed and hence, they don‘t believe that recognition and
acknowledge employee‘s contribution, learning and improvement have an impact on
export growth of the organization.

Model Summary
Adjusted R
Model R R Square Std. Error of the Estimate
Square
1 0.507a 0.369 0.311 0.67394
Table 15 Engagement of People Model Summary: (Source: Survey Result)
As show in the table 15 the value of R2 is 36.9% this describes the independent variables
including the facilitation of open discussion and sharing of knowledge and experience,
empowering employees and recognizing, acknowledging of employees contribution,
learning and improvement explain the dependent variable export performance with
36.1% and the remaining 63.9% variation could be explicated by other explanatory
variables out of this model.
Unstandardized
Standardized
Model Coefficients t Sig.
Coefficients
Std.
B Beta
Error
(Constant)1 0.664 0.471 1.408 0.165
Regularly communicate with
employees to promote
-0.007 0.127 -0.009 -0.058 0.954
understanding of the importance of
their individual contribution
Facilitate open discussion and
sharing of knowledge and 0.143 0.132 0.147 1.086 0.028
experience
Conduct Survey to assess people
satisfaction, communicate the result 0.006 0.166 0.007 0.035 0.097
and take appropriate action
Empower employees to enable to
0.081 0.162 0.104 0.501 0.051
take action without fear
Recognize and acknowledge
employees contribution ,learning 0.424 0.182 0.474 2.325 0.024
and improvement
Table 16 Engagement of People Coefficient Summary: (Source: Survey Result)
All the independent variables included in this model except regularly communicate with
employees to promote understanding of the importance of their individual contribution
and conducting survey to assess people satisfaction and communicating the result to take
appropriate action, were statistically significant that they determine export performance
positively. As facilitation of open discussion and sharing of knowledge and experience,


learning and improvement increased by one step in the level of importance export
performance increased by 14.3 %, 8.1% and 42.1% respectively. According to the
respondent‘s perception recognizing, acknowledging of employees contribution, learning
and improvement relatively contribute more than open discussions for sharing of
knowledge and experience and empowerment of employees. Further, the respondents also
indicated that regular communications with employees towards the promotion of the
understanding of the importance of their individual contribution and conducting survey to
assess employee‘s satisfaction and communicate the result and take appropriate action
have no contribution in the export performance of the organization. Hence, this negative
assertiveness towards employees, in terms of endorsing their contribution affects the
industry performance severely. As clearly revealed by the survey, this is common culture
of managers in the industry and this might be one of the reasons behind a high turnover in
the industry.
4.4.4 Process Approach

Process approach as a one dimension of quality management, it embraces four enquires
that helps to understand the perception of respondents. The first query was whether the
managers define objectives of the systems and processes necessary to achieve them.
Accordingly, 65% of the defendants were agreed and strongly agreed in defining
objectives of a systems and process necessary to the realization.. Secondly, the
respondents were asked whether they used to establish authority, responsibility and
accountability for managing each process. Consequently, 85% of the respondents
replayed agreed and strongly agreed. Whereas, 11.7% were not clarifying their opinion
they rather chosen neutral. The mean value and the standard deviation is 3.88 and 0.846
respectively. The third query raised was whether they ensure necessary information to
improve, monitor and evaluate performance. Accordingly, 68.3% were replayed agree
and strongly agree in ensuring relevant information to improve, monitor and evaluate
performance. Conversely, 13.3% were not agreed on ensuring these information usages.
18.3% were chosen the neutral position.


Disagree 11 18.3 18.3
Define objectives Neutral 10 16.7 35
of the system and
Agree 25 41.7 76.7
process necessary
to achieve them Strongly Agree 14 23.3 100
Total 60 100 3.70 0.930
Establish Strongly Disagree 3 5 5
authority, Neutral 7 11.7 16.7
responsibility and
accountability for Agree 41 68.3 85
managing each Strongly Agree 9 15 100
process Total 60 100 3.88 0.846
Ensure necessary Disagree 5 8.3 13.3
information to Neutral 11 18.3 31.7
improve, monitor
and evaluate Agree 33 55 86.7
performance Strongly Agree 8 13.3 100
Total 60 100 3.63 0.991
Assess the Strongly Disagree 3 5 5
organizational Neutral 20 33.3 38.3
capability and
Agree 31 51.7 90
determine
resource Strongly Agree 6 10 100
constraints prior
Total 60 100
to action 3.62 0.865
Process approach 3.708 0.801
Table 17 Respondent’s Perception Summary on Process Approach: (Source: Survey Result)
The last inquiry was whether the managers assess the organizational competency and
determine resource constraints prior to action. Consequently, 61.7% of the respondents
were agreed and strongly agreed and convince that they assess organizational ability and
determine resources before proceeding to action. 33.3% were not clearing their opinion.
The mean value and the standard deviation is 3.62 and 0.865 respectively.
Model Summary
Adjusted R Std. Error of the
Model R R Square
Square Estimate
1 0.553a 0.495 0.255 0.70066
Table 18 Process Approach Model Summary: (Source: Survey Result)
As show in the table 18, the value of R2 is 36.9% this describes the independent variables
including the facilitation of open discussion and sharing of knowledge and experience,


learning and improvement explain the dependent variable export performance with
36.1% and the remaining 63.9% variation could be explicated by other explanatory
Model 1
t Sig.
Std.
B Beta
Error
(Constant) 1.78 0.44 4.043 0
Define objectives of the
system and process 0.502 0.114 0.637 4.391 0.012
necessary to achieve them
Establish authority,
responsibility and
-0.536 0.273 -0.558 -1.967 0.059
accountability for managing
each process
Ensure necessary
information to improve,
0.226 0.154 0.276 1.47 0.047
monitor and evaluate
performance
Assess the organizational
capability and determine
0.138 0.213 0.148 0.649 0.019
resource constraints prior to
action
Table 19 Process Approach Coefficient Summary: (Source: Survey Result)
All the independent variables included in this model excluding establish authority,
responsibility and accountability for managing each process were statistically significant
that they determine export performance positively. As define objectives of the system and
process necessary to achieve them, ensure necessary information to improve, monitor and
evaluate performance, and assessing the organizational capability and determine resource
constraints prior to action increased by one step in the level of importance export
performance increased by 50.2 %, 22.6% and 13.8% respectively. According to the
respondent‘s perception define objectives of the system and process necessary to achieve
them relatively contribute more than ensure necessary information to improve, monitor
and evaluate performance, and assessing the organizational capability and determine
resource constraints prior to action. According to respondent‘s perception, establishing

authority, responsibility and accountability for managing each process has no

contribution to the growth of export performance.
4.4.5 Partnership and resource

Partnership and resource as one of the dimension of quality management it encompasses
three basic questions that helps understand the attitude of managers with respect to
relationship with partners. The first enquiry brought to managers was whether they
prioritized interested party relationships that need to be managed. And accordingly, 50%
were agreed and strongly agreed with the importance of this prioritization of partners.
46.7% were chosen a neutral position. The mean value and the standard deviation is 3.57
and 0.722 respectively. The second question was whether they establish relationship with
partners that balanced short-term gains and long-term deliberations. 53.3% were replayed
agree and strongly agree and their relationship to partners were constructed on short-term
and long term considerations. But 30% of the defendants were preferred a neutral
position. 16.7% were disagreed. The mean value and standard deviation is 3.42 and 0.829
respectively.
Questions Scale Freq. Per. Cum. Per. mean Sta.

dev.
Disagree 2 3.3 3.3
Neutral 28 46.7 50
Prioritized interested
Agree 24 40 90 3.57 0.722
party relationships
Total 60 100
Disagree 10 16.7 16.7
Establish relationship Neutral 18 30 46.7
that balanced short-
Agree 29 48.3 95 3.42 0.829
term gains and long-
term considerations Strongly Agree 3 5 100
Total 60 100
Establish collaborative Strongly
3 5 5
development and Disagree
improvement with Disagree 8 13.3 18.3
suppliers, partners Neutral 23 38.3 56.7 3.2 0.86
Agree 26 43.3 100
Total 60 100
Partnership and resource 3.39 0.615
Table 20 Respondent’s Perception Summary on Partnership and Resource: (Source: Survey Result)

The last question was whether they establish collaborative development and improvement
with suppliers, partners. And consequently, 43.3% of the respondents were agreed in that
they create joint development and enhancement with partners and suppliers. 38.3%
preferred neutral position. The mean value and the standard deviation remains 3.39 and
0.615 respectively.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.530a 0.485 0.142 0.15198
Table 21 Partnership and Resource Model Summary: (Source: Survey Result)
As elucidated in table 21, the value of R2 is 48.5% this describes the independent
variables including prioritizing interested party relationships, establishing relationship
that balanced short-term gains and long-term considerations, and, establish collaborative
development and improvement with suppliers, partners explain the dependent variable
export performance with 48.5% and the remaining 51.5% variations could be explicated
by other explanatory variables out of this model.
Coefficients
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 0.809 0.554 3.265 0.002
Prioritized interested party
0.333 0.19 0.029 0.174 0.043
relationships
Establish relationship that
balanced short-term gains and -0.105 0.16 -0.107 -0.656 0.515
long-term considerations
Establish collaborative
development and improvement 0.408 0.12 0.433 3.413 0.001
with suppliers, partners
Table 22 Partnership and Resource Coefficient Summary: (Source: Survey Result)
The values of β-coefficient of prioritizing interested party relationships and establishing

collaborative development and improvement with suppliers and partners are statistically
significant. An increase the value of importance in those variables by one increase export
performance by 33.3% and 40.8% respectively. According to the respondent‘s
perception, establishing relationship that balanced short-term gains and long-term

considerations is not statistically significant. Hence, the partnership would rest on mostly
in the short term profits and benefits, and this possibly obstructs a compassionate of two
side win-win relationship with partners. It persists as far as the short term benefits are
preserved. With this perspective, textile industry is identified as the utmost industry in
utilizing a plentiful kind of inputs from different corners of the world. As long as the
limit, the relationship with partnership and suppliers is a main determinant aspect in the
competitiveness of the firms. Proper management of relationship with those suppliers and
business partners is indispensable factor, even though; the respondents neglected the
management aspect of the relationship.
4.4.6 Policy and strategy
Under this category four questions were presented to the respondents to understand the
perception of policy and strategy implementation as one of quality management
dimensions. The first enquiry presented to respondents was whether they have an outlook
that without policy and strategy it is difficult to manage and improve. Accordingly,
71.7% of the respondents were agreed and strongly agreed with insight that it is
challenging to manage and improve organization without policy and strategy.18.3%
prefers a neutral position. The mean value and the standard deviation remains 3.88 and
0.768 respectively. The second question asked was whether the policy and strategy with
procedure and instruction manual the firm used improves the improvement process.
Accordingly, 68.3% were agreed and strongly agreed that the policy and strategy with a
guiding procedure and manuals helps the improvement process in their organization. In
opposition to that 28.3% were strongly disagree and disagree that is the policy and
strategy with a guiding procedure and manuals doesn‘t helps the improvement process in
their organization. 13.3% were chosen middle-of-the-road. The third question offered
was whether the policy and strategy they are exhausting provides prominence on
international competiveness. Consequently, 41.6% of the respondents were strongly
agreed and agreed that the policy and strategy implemented in their organization have a
special arrangement to support international competitiveness. In opposition to that, 26.7%
strongly disagreed and disagreed with the opinion that policy and strategy exhausted
didn‘t provide extraordinary consideration on international competiveness. 31.7% were

chosen middle-of-the-road. The mean value and standard deviation 3.28 and 0.916
respectively. The last question offered to respondent was whether they conduct periodic
risk assessment to invent a strategy. Accordingly, 40% were disagreed and strongly
disagreed so that they have no culture of assessing risk to devise the strategy. Conversely,
33.5% of the respondents answered agree and strongly agree that they incorporate a risk
assessment periodic program in the strategy, whereas, 26.7% were preferred neutral to the
question.
Questions Scale Freq Per. Cum. mean Sta.

. Per. dev.
without policy and strategy Neutral 11 18.3 28.3
it is difficult to manage and Agree 21 35 63.3
improve Strongly Agree 22 36.7 100
Total 60 100 3.88 0.768
Policy and strategy with Disagree 8 13.3 18.3
procedure and instruction Neutral 8 13.3 31.7
manual improves the Agree 35 58.3 90
improvement process Strongly Agree 6 10 100
Total 60 100 3.55 0.994
Disagree 10 16.7 26.7
Emphasis of policy and Neutral 19 31.7 58.3
strategy is on international
competiveness Agree 11 18.3 76.7
Total 60 100 3.28 0.916
Disagree 18 30 40
Conduct periodic risk Neutral 16 26.7 66.7
assessment to devise a
strategy Agree 15 25 91.7
Total 60 100 2.92 1.139
Policy and strategy 3.408 0.932
Table 23 Respondents Perception Summary on Policy and Strategy: (Source: Survey Result)
The mean value and standard deviation is 2.92 and 1.139 respectively. And this denotes a
highly segregated attitude and implementation of conducting periodic risk assessment in
organization. Even though most respondents agreed the importance of policy and strategy

as a means to improve export performance, they have a negative perception on how to

implement it flexibility.
Model Summary
R R Square Adjusted R Square Std. Error of the Estimate
a
0.656 0.52 0.47 0.69326
Table 24 Policy and Strategy Model Summary: (Source: Survey Result)
As revealed in table 24, the value of R2 is 52.0% and this designates the independent
variables comprising policy and strategy to management and improvement , policy and
strategy with procedure and instruction manual for the improvement process, the level of
emphasis of policy and strategy on international competiveness, and conducting periodic
risk assessment to devise a strategy explain the dependent variable export performance
52% and the remaining 48% variations could be expounded by other explanatory
Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) 1.561 0.331 4.71 0
Without policy and strategy it is
-0.069 0.139 -0.103 -0.497 0.621
difficult to manage and improve
Policy and strategy with procedure
and instruction manual improves the 0.255 0.214 0.319 1.190 0.039
improvement process
Emphasis of policy and strategy is on
0.323 0.126 0.508 2.561 0.013
international competiveness
Conduct periodic risk assessment to
-0.132 0.14 -0.186 -0.947 0.348
devise a strategy
Table 25 Policy and Strategy Coefficient Summary: (Source: Survey Result)
The values of β-coefficient of Policy and strategy with procedure and instruction manual
improves the improvement process and emphasis of policy and strategy is on international
competiveness are statistically significant. The increase in the value of importance in those
variables by one, increases export performance by 25.5% and 32.3% respectively.
According to the respondent‘s perception, conducting periodic risk assessment and the
importance of policy and strategy in managing and improving organization is not statistically
significant.

4.4.7 Evidence based decision making

Evidence based decision making as an instrument to elucidate export performance of a
business firm contain three questions. These questions were presented to managers to
distinguish their view with respect to export performance.
Questions Scale Freq Per. Cum. Per. Mean Sta. dev.

.
Defined performance Disagree 11 18.3 23.3
measurement at all Neutral 21 35 58.3
3.37 1.178
level with respect to Agree 11 18.3 76.7
export Strongly Agree 14 23.3 100
Total 60 100
Disagree 8 13.3 13.3
Use export data and Neutral 23 38.3 51.7
information relevant to Agree 23 38.3 90 3.45 0.852
decision making Strongly Agree 6 10 100
Total 60 100
making decisions and Disagree 6 10 10
taking actions based Neutral 23 38.3 48.3
on the results of
Agree 19 31.7 80 3.62 0.922
logical analysis
balanced with Strongly Agree 12 20 100
experience Total 60 100
Evidence based decision making 3.477 0.765
Table 26 Respondents Perception Summary on Evidence Based decision making: (Source: Survey
Result)
The first inquiry asked was whether they defined performance measurement at all level of
the organization pertaining to export performance. Based on that, 41.6% were agreed and
strongly agreed that they properly define performance measurements in accordance with
export performance across the firm. 23.3% were disagreed and strongly disagreed and
35% were preferred middle of the road. The slightly higher standard deviation indicates
the variation in perception with regard to the importance of defining measurement
performance. And the mean value is 3.37.
The second question presented to respondents was whether use export data and
information relevant to decision making in their business firm. Consequently, 48.3% of
the defendants agreed and strongly agreed the usage of export data and information by
the time they are making decision. Whereas 13.3% explain that they are not using such

kind of data and information while they are making organizational decisions. The
remaining 35% were not expressing their opinion. The mean value and the standard
deviation is 3.45 and 0.852. The last question presented was whether they make making
decisions and taking actions based on the results of logical analysis balanced with their
experience. Accordingly, 51.7% of the respondents were agreed and strongly agreed in
using logical analysis balanced with their experience. 38.3% have a reservation and
preferred the neutral position. 10% of the respondents were disagreed and they declared
that they have experience of using logical analysis in decision making. The mean value
and standard deviation is 3.62 and 0.922 respectively.
Model Summary
Model R R Square Adjusted R Square
1 0.598a 0.57 0.323
Table 27 Evidence based decision making Model Summary: (Source: Survey Result)
As shown in table 27, the value of R square is 57.0% and this designates the independent
variables containing defining performance measurement at all level with respect to
export, using export data and information relevant to decision making, making decisions
and taking actions based on the results of logical analysis balanced with experience
explain the dependent variable export performance 57% and the remaining 43%
variations could be explicated by other explanatory variables out of this model.
In the model exhibited below, the values of β-coefficient of defining performance

measurement at all level with respect to export and using export data and information
relevant to decision making are statistically significant. The increase in the value of
importance in these variables by one, increases export performance by 42.9% and 28.8%
respectively. Making decisions and taking actions based on the results of logical analysis
balanced with experience is statistically not significant in the model.

Coefficients
B Std. Error Beta
(Constant) 1.947 0.417 4.668 0
Defined performance measurement
0.429 0.081 0.622 5.272 0
at all level with respect to export
Use export data and information
0.288 0.126 -0.303 2.288 0.026
relevant to decision making
making decisions and taking actions
based on the results of logical 0.132 0.112 0.15 1.187 0.24
analysis balanced with experience
Table 28 Evidence based decision making Coefficient Summary: (Source: Survey Result)
4.4.8 Continuous Improvement

Continuous improvement as means to improve quality management of the organization
incorporates four imperative questions. Based on that, these four inquiries were presented
to factory managers to understand their insight with respect to export performance. The
first question offered was whether they adapt improvement considerations into the
development of new or modified goods, services and process in their work. Accordingly,
53.3% the respondents were agreed and strongly agreed, 18.3% were disagreed and
28.3% preferred neutral position. The mean value and standard deviation is 3.40 and
1.012 respectively. The slightly higher standard deviation is due to the reason that the
compassion of managers in the application of improvements with regard to export
performance is diversified. Subsequently, most of the apparel firms bounded with small
variety of garment products. Hence, modification and expansion of new products,
services and processes is not a developed thought in the factories. The second question
presented was whether they recognize and acknowledge innovation in the organization.
As a result, 55% of the respondents were strongly agreed and agreed in acknowledging
innovative ideas of the employees. In opposition to that 24.3% of the respondents
strongly disagreed and disagreed. Hence they explained that they have no experience of
recognition for innovative ideas in the organization. The remaining 21% prefer middle of
the road. This result clearly indicates the extent to which the industry rigorously affected
in terms of competitiveness in the global market. Innovation is the key successful factor
for the competitiveness of the industry. Now days the global garment industry is
tremendously in a dynamic state because of the vibrant alteration in fashion preference of

and the change in the livelihood of peoples. The unceasing shift should reinforce with
innovations. Hence, thus assertiveness of managers in Ethiopian textile and garment
firms distorts the industry competitiveness and export performance significantly.
Strongly
Integrate 3 5 5
Disagree
improvement
considerations into Disagree 8 13.3 18.3
the development of Neutral 17 28.3 46.7
new or modified Agree 26 43.3 90
goods, services and Strongly Agree 6 10 100
process
Total 60 100 3.40 0.972
Strongly
3 5 5
Disagree
recognize and Disagree 11 18.3 23.3
acknowledge Neutral 13 21.7 45
innovation Agree 30 50 95
Total 60 100 3.32 0.461
Strongly
3 5 5
Disagree
Train and encourage
employees on how to Disagree 8 13.3 18.3
apply their ability Neutral 14 23.3 41.7
achieve improvement Agree 26 43.3 85
objectives Strongly Agree 9 15 100
Total 60 100 3.50 0.677
Ensure people are Disagree 11 18.3 18.3
competent to Neutral 16 26.7 45
successfully promote
Agree 30 50 95
and complete
improvement Strongly Agree 3 5 100
objective Total 60 100 3.42 0.850
Continuous Improvement 3.408 0.828
Table 29 Respondents Perception Summary on Continuous Improvement: (Source: Survey Result)
The third question in this section was whether the managers train and encourage
employees on how to apply their ability to achieve improvement objectives in firm.
Accordingly, 58.3% of the respondents were agreed and strongly agreed to train and
encourage employees on how to apply their ability to achieve organizational objectives.
Conversely, 18.5% of the respondents were disagreed and strongly disagreed to
encourage employees. And 23.3% preferred the neutral position. The same way to the

above question the finding has the same impression towards export performance. The
mean value and the standard deviation is 3.50 and 0.677 respectively. The last question
offered to the respondents was whether they ensure employees are competent to
successfully promote and complete improvement objective. 55% of the respondents were
agreed and strongly agreed to ensure that employees are competent to promote and
complete improvement objectives. 18.3% of the respondents were disagreed and strongly
disagreed and the remaining 26.7% were chosen middle of the road. The mean value and
the standard deviation is 3.42 and 0.850 respectively.
Model Summary
R R Square Adjusted R Square Std. Error of the Estimate
0.523a 0.473 0.42 0.01672
Table 30 continuous Improvement Model summary: (Source: Survey Result)
As illustrated in table 30, the value of R square is 0.473 and this describes the
independent variables including integrating improvement considerations into the
development of new or modified goods, services and process, recognize and
acknowledge of innovation, train and encourage employees towards the application of
their ability to achieve improvement objectives, and ensuring that employees are
competent to successfully promote and complete improvement objective explain the
dependent variable export performance 47.3% and the remaining 52.7% variations could
be explicated by other explanatory variables out of this model. In the model
demonstrated below, the values of β-coefficient of integrating improvement
considerations into the development of new or modified goods, services and process,
recognize and acknowledge of innovation, and ensuring that employees are competent to
successfully promote and complete improvement objective are statistically significant.
The increase in the value of importance in these variables by one, increases export
performance by 1.7%, 42.9% and 28.4% respectively. Train and encourage employees
towards the application of their ability to achieve improvement objectives is statistically
not significant in the model. This indicates that employees are using their peculiar
capability that was gained previously through experience to undertake productions in the
factory. Factories very week in training and encouraging employees to enhance the
ability of their employees, however, they prefer to hire proficient workers from other
factories. Here, in spite of the fact that respondents significantly bold the issue of

recognizing and acknowledging employees, still integrating improvement programs to

realize new modifications, innovations is inadequate.
Coefficients
B Std. Error Beta
(Constant) 1.137 0.433 2.629 0.011
integrate improvement
considerations into the development
0.017 0.199 0.021 0.085 0.033
of new or modified goods, services
and process
recognize and acknowledge
0.429 0.19 0.529 2.253 0.028
innovation
Train and encourage employees on
how to apply their ability achieve -0.171 0.139 -0.224 -1.232 0.223
improvement objectives
Ensure people are competent to
successfully promote and complete 0.284 0.143 0.297 1.985 0.050
improvement objective
Table 31 Continuous Improvement Coefficient Summary: (Source: Survey Result)
4.4.9 Export performance

Export performance is the dependent variable in this study and it was measured with non-
financial indicators derived from the conceptual framework of the study. It was concise
with six different questions and presented to respondents with the intention of
understanding the level of export performance in those factories. The first query was
whether the export undertaking has improved the global competitiveness of the firm.
Accordingly, 36.7% were agreed and strongly agreed and they believed that it improved
their global competitiveness. Conversely, 23.3% were disagreed and strongly disagreed
to this opinion, whereas 40% of the respondents were preferred middle of the road. The
standard deviation is slightly higher that one with the mean value of 3.25. This might be
due to the varied insights in with respect to export performance of the firms. The second
question asked was whether export venture has strengthened firm‘s global strategic
position. The same way, only 31.7% were agreed and strongly agreed that the export
undertaking strengthened the firm‘s global strategic position. 23.3% were disagreed and
strongly disagreed and 45% were chosen middle of the road. The mean value and the
standard deviation is 3.15 and 0.917 respectively. .

Questions Scale Freq. Per. Cum. Per. mean St. dev.

Strongly Disagree 2 3.3 3.3
Export venture has Disagree 12 20 23.3
improved our Neutral 24 40 63.3
global Agree 13 21.7 85
competitiveness Strongly Agree 9 15 100
Total 60 100 3.25 1.052
Export venture has Disagree 12 20 23.3
strengthen our Neutral 27 45 68.3
global strengthen
our global Agree 13 21.7 90
strategic position Strongly Agree 6 10 100
Total 60 100 3.15 0.917
export venture has Disagree 14 23.3 26.7
significantly Neutral 25 41.7 68.3
increased our
global market Agree 16 26.7 95
share Strongly Agree 3 5 100
Total 60 100 3.07 0.918
Performance of Disagree 20 33.3 41.7
our export venture Neutral 24 40 81.7
is very satisfactory Agree 11 18.3 100
Total 60 100 2.68 0.873
Export venture has Disagree 11 18.3 36.7
been very Neutral 29 48.3 85
successful Agree 9 15 100
Total 60 100 2.60 0.960
Export venture has Disagree 13 21.7 40
fully met our Neutral 31 51.7 91.7
expectation Agree 5 8.3 100
Total 60 100 2.50 0.893
Export Performance 2.87 0.811
Table 32 Respondents Perception Summary on Export Performance: (Source Survey Result)
The third question asked was whether the export venture has significantly increased the
global market share of the firm. Accordingly, 31.7% of the respondents strongly agreed
and agreed that it significantly increased the global market share of the firm. Whereas

26.6% were strongly disagreed and disagreed to this opinion and 41.7% were chosen
neutral position. The mean value and the standard deviation is 3.07 and 0.917
respectively. The forth inquiry was whether the performance of the export venture of the
firm is very satisfactory. Based on that, only 18% of the respondent were strongly agreed
and agreed with the opinion that mentioned it is satisfactory and 42.6% were strongly
disagreed and disagreed, whereas 48.3% were chosen middle of the road. Here, the mean
value is 2.68, which is below the middle value and the standard deviation is 0.873. The
fifth question presented to respondents was whether the export venture has been very
successful. Accordingly, 36.6% were strongly disagreed and disagreed about the
successfulness of the export performance of the firm. Only 15% were agreed that, it is
successful and 48.3% were chosen the neutral position. The mean value is 2.60, which is
lower and the standard deviation is 0.960. The last question offered to defendants was
whether export venture has fully met the management‘s expectations. Consequently, only
8.3% were agreed and strongly agreed that it met the expectations. Whereas 40% were
strongly disagreed and disagreed hence, they didn‘t believe that it met their expectations.
Moreover 51.7% were preferred the neutral position. From the above enlightenments, the
findings disclose that most of the respondents were not contented with the current export
performance of the business firms with the mean value of 2.87 and the standard deviation
is 0.811.
E.C 2003 2004 2005 2006 2007 2008

Total sales/
in 000 USD/ 993,541 985,217 977,468 1,308,960 1,466,879 1,643,850
export/ in
000 USD/ 43,009 73,650 71,212 109,599 97,946 81,814
Export
intensity 0.0433 0.0748 0.0729 0.0837 0.0668 0.0498
Table 33 Ethiopian Textile and Garment six years export performance (source Ethiopian Textile
Industry development Institute report)
In addition to the above elucidation, the past six years export performance of the sector
indicates a decrease in export intensity. At the early years, there were a significant raise
in export intensity till the year 2006; this might be due to a substantial growth in inward
flow of foreign direct investment to the country. A steady decrement might indicate a

decline in the competitiveness of the firms that had been forced them to focus in to the
local market than export.
Export intensity
0.1000
Export intensity
0.0800
0.0600
0.0400
0.0200
0.0000
2003 2004 2005 2006 2007 2008
Export intensity 0.0433 0.0748 0.0729 0.0837 0.0668 0.0498
Figure 9 Graph indicate the export intensity of the industry
4.5 Test and analysis to examine the relationship and impact
In this study the student researcher used to analyze various tests of significance for
normality, autocorrelation in order to determine the validity of data. The data was sorted
to group questions according to applicable constructs under test. Finally correlation and
multiple regression analysis were performed.
4.5.1 Normality test
Frequency distributions come in many different shapes and sizes. It is quite important,
therefore, to have some general descriptions for common types of distributions. In an
ideal world our data would be distributed symmetrically around the center of all scores.
As such, if we drew a vertical line through the center of the distribution then it should
look the same on both sides. This is known as a normal distribution and is characterized
by the bell-shaped curve. This shape basically implies that the majority of scores lie
around the center of the distribution (so the largest bars on the histogram are all around
the central value. In a normal distribution, the values of skewness are 0. If a distribution
has values of skew above or below 0 then this indicates a deviation from normal (Field,
A, 2006). Bluman also describes that if the index is greater than or equal to +1 or less
than or equal to -1, it can be concluded that the data is significantly skewed. If it is with

that range, therefore, it can be concluded that the distribution is approximately normally
distributed (Allen G. Bluman, 2007).
Mean Std. Skewness Std. Error of Min Max
Variables Dev. Skewness
Leadership 3.55 0.704 -0.782 0.309 1.83 4.50
Customer focus 3.58 0.571 -0.056 0.309 2.33 4.67
Engagement of peoples 3.36 0.735 -0.086 0.309 1.80 4.80
Process Approach 3.70 0.801 -0.268 0.309 1.25 5.00
Partnership-Resource- 3.39 0.615 -0.396 0.309 2.00 4.33
Policy and Strategy 3.40 0.932 -0.615 0.309 1.00 5.00
Evidence based decision making 3.47 0.764 -0.446 0.309 2.00 5.00
Continuous Improvement 3.40 0.828 -0.371 0.309 1.75 5.00
Export Performance 2.87 0.811 -0.290 0.309 1.00 4.33
Table 34 Summary of Normality Test
Therefore, in the above table the data in all variables is a slightly negatively skewed, but
it is within the range of normality (+1 to -1) and it doesn‘t violate the assumptions of
normality and it can be concluded that, it is approximately, normally distributed.
4.5.2 Correlation Analysis

The correlation coefficient is utilized in the assessing the relationship between the
dependent and independent variables. This coefficient answers whether there is a
relationship between variables, the magnitude and direction of the relationship. The
correlation result revealed that the seven quality management practices have a positive
and significant relationship with export performance at 0.01 and 0.05 levels of
significances. These results are partly similar to those of Haile and Satya were ranging
from 0.383 to 0.862 in all manufacturing firms of Ethiopia (Haile Yeshanew & Satya
Raju R., 2016).

Pearson Sig.
Hypothesis H1 magnitude direction
Correlation value
LS as quality management
practices has a significant
0.656** 0 Accepted moderate positive
positive relationship with
EXPOP
CF as quality management
EXPOP
EP as quality management
0.572** 0.004 Accepted moderate positive
EXPOP
PA as quality management
0.329* 0 Accepted lower positive
EXPOP
PR as quality management
0.229 0.079 Rejected Not sig. Not sig.
EXPOP
PS as quality management
0.504** 0.01 Accepted moderate positive
EXPOP
ED as quality management
EXPOP
CI as quality management
EXPOP
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Table 35 Correlation Summary: (Source: Survey Result)
Based on the result leadership, customer focus and engagement of people have the
relatively highest correlation with export performance. The lowest relationship is
perceived with process approach, which is 0.329.

Pearson correlation
Pearson Correlation
coefficient
Pearson Correlation
0.656 0.572
0.515 0.504 0.445
0.329 0.363
LS CF EP PA PS ED CI
QM Principles
Figure 10 Graph illustrating Pearson correlation relativity of variables
4.5.3 Auto-correlation assumptions

Autocorrelation is a special case of correlation where the association is not between
elements of two or more variables but between successive values of one variable, while
correlation refers to the relationship between values of two or more different variables.
Durbin-Watson used to test for serial correlation between errors. The test statistic value d
can vary between 0 and 4, with a value of 2 meaning the residuals are uncorrelated. A
value greater than 2 indicates a negative correlation between adjacent residuals, whereas
a value below 2 indicates a positive correlation (Field, A, 2006). If serial correlation is
suspected, then the proposed multiple regression models are inappropriate and some
alternative must be sought. As it is observed in table 34, the research model the value of
the test is 1.892, so it can be safely assumed that there is no problem of autocorrelation.
4.5.4 Multiple Regression result
Multiple regression analysis is a technique that used to explore the nature of a

relationship between two groups of variables. Regression model is used to quantify the
relationship between the two groups. It was used to recognize the relative impact of the
quality management practices on export performance.
I. Coefficient of determination
Model summary table describes whether the model is successful in predicting dependent
variables. It gives a value of R square, which measure of how much of the variability in
the outcome is accounted for the predictors.

Model Summary
R Adjusted R Std. Error of the
Model R Square Square Estimate Durbin-Watson
1 0.775a 0.600 0.538 0.55189 1.892
Table 36 Quality Management Variables Model Summary: (Source Survey Result)
From the above table 36, the independent variables that were studied, and it explain 60%
of the variation export performance. In other words, 60% of the change in export
performance is due to quality management factors. This means that other factors not
studied in this research contribute 40% for the variation export performance. Therefore,
the two variables are significantly related. This value of R-squared substantiates the
model and the hypothesis of the study.
II. Regression Coefficients or Model
Standardized regression coefficient (Beta) is the estimated coefficient indicating the

strength of relationship between an independent variable and dependent variable
expressed on a standardized scale where higher absolute values indicate stronger
relationships(range is from -1 to 1).
Coefficients a
B Std. Error Beta
(Constant) 0.372 0.209 1.104 0.015
LS 0.275 0.129 0.261 3.793 0.001
CF 0.240 0.201 0.195 2.432 0.019
EP 0.159 0.194 0.143 1.685 0.038
PA 0.032 0.209 0.029 0.710 0.011
PR -0.463 0.249 -0.244 -1.455 0.152
PS 0.085 0.179 0.078 0.578 0.016
ED 0.037 0.149 0.024 0.393 0.036
CI 0.286 0.187 0.228 2.018 0.049
a. Dependent Variable: Export performance
Table 37 Quality Management Variables Coefficient Summary: (Source: Survey Result)
Table 37 shows the Beta Coefficients that present the contributions or positive or
negative relationship of each variable to the model. The t and p values showed the
influence of the independent variables on the dependent variable. At 5% level of

significance and 95% level of confidence, leadership had a 3.793 level of significance,
customer focus showed a 2.432 level of significance, continuous improvement showed a
2.018 level of significant and engagement of employees showed 1.685 level of
significance. Hence, the most significant factor observed is leadership. According to beta
coefficient results, except one statistically insignificant variable, all independent variables
are positively related to dependent variables and significantly determine export
performance. Variables were regressed using a model and all coefficients interpreted. The
equation was developed as follows:
Y= β0 + β1 χ1 + β2 χ2 + β3 χ3 + β4 χ4+ β5 χ5 + β6 χ6+ β7 χ7 +β8 χ8+є

Where: Y = Dependent Variable (Export Performance-EXP)
χ1-n= Independent variable (χ1 is Leadership-LS, χ2 Customer Focus-CF , χ3 is
Engagement of people-EP, χ4 is Process Approach-PA, χ5 is Partnership and
Resource , χ6 is Policy and Strategy-PS ,χ7 is Evidence Based decision making-
ED and χ8 is Continuous Improvement-CI)
β0 = the constant
β1-n= the regression coefficient or change included in Y by each χ
є = error term
The study developed below regression model:
Y= 0.372+ 0.275LS+ 0.240CF + 0.159 EP+ 0.032 PA+ 0.085 PS + 0.037 ED+ 0.286CI +є
Based on the model, as leadership, customer focus, engagement of employees, process

approach, policy and strategy, and evidence based decision implementations of the firms
increased by one step in the level of importance; the export performance increase by
27.5%, 24%, 15.9%, 3.2%, 8.5% , 3.7% and 28.6% respectively. However, partnership
and resource component of quality management is statistically insignificant and can‘t be
included in the model.

4.6 Summary of findings

Following to the data analysis in the above section of the research, summary of findings
is explained below.
In this study, leadership is significantly associated with export performance and the
finding is consistent with the previous studies of Blanten Godfrey and Joseph M. Juran
(Joseph M. Juran , A. Blanten Godfrey, 1979). A one step variation in the level of
importance of leadership brings a 27.5% variation in export performance. The mean
value 3.55 indicates the moderate application of leadership in the factories. And it is
correlated positively with export performance with coefficient of 0.656 (at 0.01 level of
sig.). Customer focus as a quality management instrument in this study is positively
correlated to export performance with coefficient of 0.515(at 0.01 level of sig.). A one
step variation in the level of importance of customer focus brings a 24% variation in
export performance. The mean value of implementing it equals to 3.58 with a standard
deviation of 0.571. The result is consistent with previous study of Chong and Rundus,
which found the positive relationship between the two variables in Sri Lankan‘s apparel
industry (Chong V.K, and Rundus M.J, 2004). Engagement of employees as a one
dimension of quality management in this research context is positively correlated to
export performance with a coefficient of 0.572(at 0.01 level of sig.). A one step variation
in the level of importance of engagement of peoples brings a 15.9% variation in export
performance. The mean value of implementing it equals to 3.36 with the standard
deviation of 0.735. And this result supports the previous research by Daniel and Fasika,
which agree that most Ethiopian manufacturers don‘t have a culture of supporting
involvement of employees in quality improvement (Daniel Kitaw & Fasika Bete, 2003).
Process approach as one aspect of quality management significantly correlated with

export performance positively. The correlation coefficient is 0.329(at 0.05 level of sig.).
A one step variation in the level of importance of process approach brings a 3.2%
variation in export performance. The mean value of implementing it accounts the highest
mean 3.70 with the standard deviation of 0.801. The research is consistent with the
previous findings of Ahmad M.F, Zakuan, and N. Jusoh, which conclude the positive
relationship between export performance and process approach (Ahmad M.F, Zakuan,

N.and Jusoh, 2013). Partnership and resource as one element of quality management in
this study, has statistically insignificant in the relationship with export performance. The
mean value of application 3.39 and the standard deviation is 0.615. Opposite result was
appreciated in the study of Talib F. and Rahman Z., that conclude a positive relationship
of these two variables (Faisal Talib, Zillur Rahman, 2010). Policy and strategy as a
quality management tool in this study has a positive significant relationship with export
performance and the relationship coefficient is 0.504 (at 0.01 level of sig.) A one step
variation in the level of importance of policy and strategy brings 8.5% variation in export
performance.
Evidence based decision as one component of quality management has a positive

correlation with export performance of firms and the relationship coefficient is 0.363 (at
0.01 level of sig.). A one step variation in the level of importance of evidence based
decision making brings a 3.7% variation in export performance. The mean value of
application 3.47 and the standard deviation is 0.764. The research is consistent with
Cadogan J.and A. Diamatopoulos‘s finding concluding the positive relationship of the
two variables (Cadogan, J. W. & Diamantopoulos, A., 1995). Continuous Improvement
as one element of quality management in this study has statistically insignificant in the
relationship with export performance and the relationship coefficient is 0.445 (at 0.01
level of sig.). A one step variation in the level of importance of continuous Improvement
brings a 28.6% variation in export performance. The mean value of application 3.40 and
the standard deviation is 0.0.828. the finding is consistent with Xayphone and
Kongmanila, that stress the positive relationship of continuous improvement and export
performance of a business firm (Xayphone & Kongmanila, 2009).

CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATION

5.1 Conclusions
This research has presented the results of the study conducted on Ethiopian Textile and
Garment exporters, with a primary objective of investigating the impact of quality
management practices in export performance of these firms. The result in general has
suggested that, firms in the survey are found to have implemented certain kinds of quality
management programs. This means, they are generally conscious of the importance of
quality management. However firms were not practiced the complete and comprehensive
components of quality management with the target of achieving enhanced export
performance. Therefore, with the next parts the paper indicates areas of lacking in
implementation of each component.
5.1.1 Leadership
The top management‘s culture in developing vision, mission and strategy of the firm to
meet export performance is limited. In addition, interconnecting the strategy to
employees, and developing a common shared value and purpose is not a customary
rehearsal. Most firms wrongly perceived that shared values, fairness, and ethical models
are less important factors, and they consider also continuously inspiring, encouraging and
recognizing employee role doesn‘t have any influence to export growth. Besides,
building a cloud of trust and integrity is neglected. Hence, it absolutely determines the
productivity of employees depressingly. A lower degree of practice is also seen in
allocating resources and providing training to employees. In general, the result confirms,
even though, its relevance is understood by the firms, leadership practice as a quality
management maneuver is not comprehensively pragmatic. This implies that Ethiopian
textile and garment export business still have a long way to go in the journey of quality
management.

5.1.2 Customer Focus
The study revealed a strong indication by most respondents that, aligning the needs of
customer‘s current and future need with organizational objective is critical factor in
export business. But, managers were not attempted to establish their strategy to excel at
and exceed the customer‘s expectation. And the existing relationships they have with
their customers, is not satisfactory even for themselves. In general this demonstrates that
Ethiopian garment and textile companies lack to give more attention for customer‘s need
hence, customer focus strategies were not revised continuously. It can be concluded that
firms still needs to struggle to implement customer focused programs to improve their
performance.
5.1.3 Engagement of Peoples
The verdicts of the study designates that the practice of engagement of peoples in the
firms has been left behind in facilitating open discussions and sharing of knowledge.
Learning and improvement, has been customary to some extent by the managers but, they
have still a reservation on sanctioning employees to take action without any restraint.
Recognizing and acknowledging employees for contributions is moderately accepted.
Most firms were not conduct continuous assessment to evaluate their employee‘s
satisfaction and to take remedial dealings that helps them to make the operational
environment more encouraging and promissory for workers.
5.1.4 Process Approach
The study evidently demonstrates that, firms have a strong belief in the importance of
standardizing and defining operating procedures and process design. And they also
established authority, accountability and responsibility in each core process and systems.
This might be due to the fact that most firms have a limited range of products, hence,
production lines, process and systems are established once to maintain the fabrication of
the same items. Consequently, variations in these processes are uncommon. As a result,
these probably hinder the employees to keep fit for a new processes and systems. In the
other way, problem arises in gauging organizational capability and ensuring inputs

handiness prior to production. Besides, it is observed that process efficiency analysis,

evaluation, and monitoring are uncommon practices.
5.1.5 Partnership and Resource
For sustained success, an organization needs to manage its relationships with interested
parties. The findings of this research indicate that, most firms don‘t have a relationship
scheme that prioritized interested parties. In addition to that, firms have no organized and
planed short and long term strategies on how to manage their relationships. Collaborative
programs with suppliers had not been developed yet. The partnership mostly would rest
on in the short term profits and benefits, and this possibly obstructs a compassionate of
two side win-win relationship with partners. And, it persists as far as the short term
benefits are preserved. With this perspective, textile industry is identified as the utmost
industry in utilizing a plentiful kind of inputs from different corners of the world.
Pointedly, the affiliation with partners and suppliers is a main determinant aspect in the
competitiveness of the firms. Proper management of relationship with those suppliers and
business partners is indispensable factor, even though; the respondents neglected the
management aspect of the relationship.
5.1.6 Policy and Strategy
Under policy and strategy, the firms emphasized boldly that without organizational policy
and strategy it is difficult for them to manage the export business. And the policy and
strategy they developed and used helped them improve their business. But, most firms
granted that this strategy and policy still did not make them proficient in the global
market. From this it can be concluded that, most Ethiopian textile and garment
manufacturing firms either use inefficient strategy or policy or they lack the ability to
implement the strategy competently. And the study observes that most firms fail to revise
and adjust in and risky conditions and emergency situations.

5.1.7 Evidence Based decision making
Judgments based on data and analysis is more likely to support the desired result. The
study indicates that familiarity of using data and logical analysis in most firms is
inadequate. Some of the firms did not use defined measurements; hence they neglect
proper and timely recordings. International business is practicable only and if only, the
firms have developed a means to utilize universal business information. There is no way
for a business to be out of this giant preliminary condition. Therefore, it can be concluded
that most Ethiopian textile and garment export firms have been far from exploiting
international business information, to improve their export performance.
5.1.8 Continuous Improvement
It is apparently known that, to create a successful organization, there has to be an ongoing

focus on improvement. In this study it is noticed that improvement in terms developing a
new process and product is moderately seen as important factor by the firms. And
integrating these improvements in a planned and comprehensive way is not in hand. Most
export firms confirm that they have no room for recognition and acknowledging
innovation. Factories training programs mostly were casual and focused on primary
dressing skills. The total ability of the firms to accommodate the dynamic forces of
global fashion demand is problematic. Therefore, it can be concluded that Ethiopian
textile and garment export business is still have a long way to go in the journey toward
continuous improvement.

5.2 Recommendations
The student researcher would like to forward the following propositions to
concerned body to discharge their responsibility in the development of quality
management toward the improvement of export performance.
To the business firm
 Leadership is a way of enhancement, which coordinates the capabilities of the

business organization. Therefore, either firms should give a superior consideration
to business leadership skills, while recruit managerial positions or, short term
trainings has to be consolidate in order to fill those skill gaps encountered.
 Developing strategy which encompasses vision and mission, and communicating
the strategy across the firm, develops a consistency of purpose in the organization.
Therefore, firms should follow scientific procedures to formulate its strategy and to
realize it towards the improvement of export performance.
 Firms should have to develop regular reward programs that enable to encourage and
recognize employee‘s role, innovations and contributions.
 Firms should develop active merchandizing, product forecasting and designing
team that regularly scan the global fashion market trends and respond accordingly.
 Firms should organize a research and development unit as a center of Excellency
that would assists training and innovation and probably it may serves as a brain of
the firm.
 Firms should think planned and thoughtful involvement of employees in export
planning, controlling, implementing and evaluating continuously.
 Firms should clearly identify functional relationship of processes and develop a
detailed standard to assist authority, accountability and responsibility in each core
process and systems, and accordingly should improve process monitoring,
evaluating and controlling systems.
 Firms should formulate partnership strategy based on short and long term outcomes.
The strategy should at least define; the priority levels of partners, the possible
upcoming problems if relationship failed and the way to reverse the problem, the
means and interval of communication.

 Firms should have to frame and make customary to use a standard internal
monitoring, reporting and recording formats to support the handover of important
information that helps decision making.
 Firms should have to join in international trade fairs and conferences to widen its
scope and to notice international experiences.
 Firms should bear a continuous attention to internal improvements with respect to
product, process and people.
To the Government
 The government should give a special prominence to assist leadership and

international marketing capacity building programs that would support internal
growth of the factories in terms of management efficiency.
 Benchmarking programs in quality management should have to consolidate to
capture and scale up experiences skillfully.
 A separate and centralized management focused research and development
supportive unit has to be established to serve the gap in the firms.
In generally speaking, the attainment of export performance objective can be realized

significantly, when the export firms comprehensively plan, implement, control and
evaluate quality management practices proficiently.
5.3 Limitations of the study

Limitations are potential influences that the researcher cannot control. In this study the
main source of restrictions were the availability of time to collect data, and inability to
acquire relevant information. Therefore, with these short comings and conditions
emphasis was given to the compensatory measures to mitigate those effects.
=====================================THE END====================================

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Annex 1
LEADSTAR COLLEGE OF MANAGEMENT & LEADERSHIP

DEPARTMENT OF BUSINESS LEADERSHIP
QUESTIONNAIRE
Dear Sir/Madam
I am a student at Leadstar College of Management and Leadership, pursuing Master degree in

Business Administration (MBA). As part of the course requirements, I am supposed to conduct a
study on “The Impact of Quality management in export performance, In the case of Ethiopian
Textile & Garment Industry”.
I request you to assist me to achieve my most desired goal of accomplishing the aforementioned
research by filling in this questionnaire. I would like to assure you that all information you
provide will be treated with great confidentiality and used only for the purpose mentioned earlier.
GENERAL INSTRUCTIONS
 There is no need of writing your name.

 In all cases where answer options are available please tick (√) in the appropriate box.
Section I: General Information
1. Sex: Male Female
2. Which of the following age categories describes you?
Under 25 25-34 35-44 45-54 Above 55 years
3. Number of years you have worked for the factory:
0-4 5-9 10-19 20-30 Above 30 years
4. Educational Qualification:
College Diploma BA/BSc Degree MSc/MA Degree PhD
5. Your field of specialization in terms of highest educational status_______________________

Section II- Based on your experience, please indicate, if the following major quality management elements have
been related with export performance
Strongly Strongly
Disagree Disagree Neutral Agree Agree
1 Leadership 1 2 3 4 5
1 2 3 4 5
we are using the organization‘s mission, vision, strategy, to
1.1 meet export plan
We strive to create and sustain shared values, fairness and 1 2 3 4 5
1.2 ethical models for behavior at all levels of the firm
we established a culture of trust and integrity, to eliminate 1 2 3 4 5
1.3 fear in the firm
We provide people with the required resources, training and 1 2 3 4 5
1.4 authority to act with accountability.
We continuously Inspire, encourage and recognize people‘s 1 2 3 4 5
1.5 contribution
I ensure that I am positive examples to employees in the 1 2 3 4 5
1.6 organization.
2 Customer Focus 1 2 3 4 5
We understand and align the needs of customers‘ current 1 2 3 4 5
2.1 and future needs with our organizational objective
2.2 Our aim is to exceeded customer expectations 1 2 3 4 5
2.3 Our customers are satisfied with the relationship we have 1 2 3 4 5
3 Engagement of Peoples 1 2 3 4 5
We regularly communicate with employees to promote 1 2 3 4 5
understanding of the importance of their individual
3.1 contribution.
We facilitate open discussion and sharing of knowledge and 1 2 3 4 5
3.2 experience we employees.
We Conduct surveys to assess people‘s satisfaction, 1 2 3 4 5
3.3 communicate the results, and take appropriate actions
We empower employees to enable them to take initiatives 1 2 3 4 5
3.4 without fear.
We recognize and acknowledge employee‘s contribution, 1 2 3 4 5
3.5 learning and improvement.
4 Process Approach 1 2 3 4 5
We defined objectives of the system and processes 1 2 3 4 5
4.1 necessary to achieve them
We establish authority, responsibility and accountability for 1 2 3 4 5
4.2 managing each processes
We ensure the necessary information is available to operate 1 2 3 4 5
and improve the processes and to monitor analyses and
4.3 evaluate the performance of the overall system.
We assess the organization‘s capabilities and determine 1 2 3 4 5
4.4 resource constraints prior to action.

5 Partnership and resource 1 2 3 4 5

We prioritize interested party relationships that need to be 1 2 3 4 5
5.2 managed.
We establish relationships that balance short-term gains with 1 2 3 4 5
5.3 long-term considerations
1 2 3 4 5
We establish collaborative development and improvement
5.4 activities with suppliers, partners and other interested parties
6 Policy and strategy 1 2 3 4 5
Without policy and strategy it is difficult to manage and 1 2 3 4 5
6.1 improve the organization overall activities
Our policy and strategy with procedure and instruction 1 2 3 4 5
6.2 manual improves the improvement process
Our emphasis of policy and strategy is on international 1 2 3 4 5
6.3 competitiveness
6.4 We conduct periodic risk assessment to devise a strategy 1 2 3 4 5
7 Evidence based Decision making 1 2 3 4 5
We defined performance measures at all levels that relate to 1 2 3 4 5
7.2 export performance
We use export market data and information relevant to 1 2 3 4 5
7.3 decision making
We making decisions and taking actions based on the results 1 2 3 4 5
7.4 of logical analysis balance with experience
8 Continuous Improvement 1 2 3 4 5
We integrate improvement considerations into the 1 2 3 4 5
development of new or modified goods, services and
8.1 processes.
8.2 We recognize and acknowledge innovations 1 2 3 4 5
We train and encourage employees at all levels on how to 1 2 3 4 5
8.3 apply their ability achieve improvement objectives
We ensure people are competent to successfully promote 1 2 3 4 5
8.4 and complete improvement objectives
Section III- Based on your experience, please indicate, if the following major export performance measurements
have been implemented
Strongly strongly
Disagree Disagree Neutral Agree Agree
9 Export Performance 1 2 3 4 5
our export venture has improved our global 1 2 3 4 5
9.1 competitiveness
our export venture has strengthen our global strategic 1 2 3 4 5
9.2 position
our export venture has significantly increased our global 1 2 3 4 5
9.3 market share
9.4 the performance of our export venture is very satisfactory 1 2 3 4 5
9.5 our export venture has been very successful 1 2 3 4 5
9.6 our export venture has fully met our expectations 1 2 3 4 5

Annex 2
Correlationsa
Export
LS CI ED PS PR PA EP CF
p
Pearson
1 .656** .445** .363** .504** 0.229 .329* .572** .515**
Exportp Correlation
Sig. (2-tailed) 0 0 0.004 0 0.079 0.01 0 0
Pearson
1 .284* .345** .435** 0.14 .261* .463** .398**
LS Correlation
Sig. (2-tailed) 0.028 0.007 0.001 0.287 0.044 0 0.002
Pearson
1 .596** .793** .762** .744** .746** .503**
CI Correlation
Sig. (2-tailed) 0 0 0 0 0 0
Pearson
1 .439** .625** .464** .462** .588**
ED Correlation
Sig. (2-tailed) 0 0 0 0 0
Pearson
1 .645** .819** .831** .638**
PS Correlation
Sig. (2-tailed) 0 0 0 0
Pearson
1 .796** .645** .567**
PR Correlation
Sig. (2-tailed) 0 0 0
Pearson
1 .694** .653**
PA Correlation
Sig. (2-tailed) 0 0
Pearson
1 .593**
EP Correlation
Sig. (2-tailed) 0
Pearson
1
CF Correlation
Sig. (2-tailed) 0
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

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Leadstar College of Management and Leadership

(Ashland University Collaboration)

The Impact of Quality management in export performance

Leadstar College of Management and Leadership

The Impact of Quality management in export performance

A thesis submitted to the department of Business Leadership, Leadstar College of

Sintayehu Hailemariam-2017 Page i

Name________________________________ Signature__________ Date__________

Name of the advisor_______________________ Signature ________Date__________

Sintayehu Hailemariam-2017 Page ii

Name of the supervisor____________________________________ Signature ________

Name of Internal Examiner _________________________________Signature ________

Name of External Examiner ________________________________Signature ________

Name of Head of Department _______________________________Signature ________

Sintayehu Hailemariam-2017 Page iii

I feel honored to acknowledge here tireless effort of my family specially my sister

Sintayehu Hailemariam-2017 Page iv

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2.2.5 Quality Management in Textile and Garment Industry .................................... 19

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4.4.4 Process Approach ............................................................................................. 55

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CAGR: Compound Annual Growth Rate

DP: Deming Prize

EBA: Everything but Arms (EU)

EFQM: European Foundation for Quality Management

EQA: Ethiopian Quality Award

GDP: Gross Domestic Product

GTP: Growth and Transformation Plan

ISO: International Organization for Standardization

MBNQA: Malcolm Baldrige National Quality Award

CS: Customer Focus

EP: Engagement of People

PA: Process Approach

PR: partnership and Resource

PS: Policy and Strategy

ED: Evidence based Decision Making

CI: Continuous Improvement

Sintayehu Hailemariam-2017 Page xi

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1.1 Background of the study

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1.2 Theoretical Background

Sintayehu Hailemariam-2017 Page 2

opportunities and recognized opportunities into actual improvement. In a specific way,

1.3 Overview of the industry

Sintayehu Hailemariam-2017 Page 3

1.4 Statement of Problem

Sintayehu Hailemariam-2017 Page 4

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The second contributing factor mentioned is the productivity and competitiveness of

1.5 Objectives of the Study

 To investigate the impact of quality management practice in the industry‘s export

Sintayehu Hailemariam-2017 Page 6

1.6 Research model and questions

1.6.2 Research Question

2. Do the identified quality management practices have significant positive relationship

Sintayehu Hailemariam-2017 Page 7

1.7 Research Hypotheses

H 1: There is a significant positive relationship between overall identified quality

Name____________________ Signature Date

Name of the advisor_____________ Signature Date

Name of the supervisor____________________________ Signature

Name of Internal Examiner _________________________Signature

Name of External Examiner ________________________Signature

Name of Head of Department _______________________Signature