The Impact of Total Quality Management on Productivity in Oil and Gas Manufacturing Industries: A Case Study from SME of Oman

Abstract

This study explores the relationship between Total Quality Management (TQM) practices and productivity in Omani SMEs within the oil and gas manufacturing sector. Using a five-point Likert scale, the research examines TQM dimensions such as top management support, customer focus, employee motivation, and continuous improvement, and their impact on productivity, human capital investment, product quality, and production size. Results show a strong link between TQM practices and productivity, with top management support having the most significant impact (mean = 4.28, SD = 0.82). Other dimensions, including customer focus (mean = 4.08, SD = 0.86), employee motivation (mean = 3.96, SD = 0.96), and continuous improvement (mean = 4.09, SD = 0.88), also scored highly. Human capital investment (mean = 4.02, SD = 0.96) and its impact on productivity (mean = 4.11, SD = 1.00) were strongly correlated with productivity. Key productivity drivers were identified as product quality (mean = 4.23, SD = 0.85) and production size (mean = 4.26, SD = 0.84). Regression analysis revealed a strong positive relationship between TQM practices and productivity, with an R square value of 0.696, indicating that TQM accounts for nearly 70% of productivity variation. ANOVA confirmed the robustness of the model. While the sector shows high TQM implementation and productivity, improvements are needed in employee involvement and customer feedback collection, offering valuable insights for SMEs in Oman.