Sustaining Customer-Focused Strategy In Tqm Practices: A Case Of Smes In Malaysia
Abstract
Total Quality Management (TQM) is a holistic managerial approach that emphasises continuous quality improvement and employee involvement to achieve long-term organisational success through enhanced customer satisfaction and stakeholder value. Although widely promoted, limited empirical research has explored the impact of TQM implementation on the performance of small and medium-sized enterprises (SMEs) in Malaysia. Existing studies indicate that while SMEs adopt quality management practices to improve operations and elevate product and service quality, their effectiveness is often hindered by constraints such as limited TQM knowledge, weak leadership commitment, insufficient customer focus, and restricted financial or human resources. This study reports findings from a survey involving 200 SMEs in the Klang Valley, with the aim of assessing the central role of customer-centricity in TQM implementation. The results show that improvements in customer satisfaction, ISO 9000 certification, and SME competitiveness are primarily driven by strong customer-focused strategies. Customer satisfaction emerged as the strongest predictor of business performance, whereas competitiveness exhibited a weaker direct effect. The study contributes to the literature by offering empirical evidence of the causal relationships among these constructs and demonstrates that competitiveness does not function as a major mediator in influencing performance. Overall, the findings highlight the importance of sustaining customer-focused TQM practices, integrating ISO 9000 standards with customer-driven initiatives, and fostering a strong organisational quality culture for long-term SME success
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Publication Date
01 September 2026
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European Publisher
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1st Edition
Pages
1-1
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Accounting and Finance, Business and Management, Communication, Law and Governance
Cite this article as:
Omar*, M., Abdullah, M., Mohd Darus, R., Muhammad, S. A. M., Muhammad, A., & Abu Seman, S. (2026). Sustaining Customer-Focused Strategy In Tqm Practices: A Case Of Smes In Malaysia. In Y. Naoyuki, A. Peng Hwa, & J. Matthes (Eds.), GLY-Upcoming Volume: Innovating Together: The Convergence of Management, Communication, and The Digital Transformation, vol -. European Proceedings of Social and Behavioural Sciences (pp. 0-0). European Publisher. https://doi.org/10.15405/epsbs.2026.09.49