The Mediation Effects of TQM on the Relationship between Differentiation Strategy and Financial Performance of Manufacturing Firms in Kenya

Abstract

The study aimed to establish the mediation effects of TQM on the relationship between cost leadership strategy and financial performance of manufacturing firms in Kenya. The target population for the study was 39 ISO certified, manufacturing firms in Kenya. The target respondents were the CEO, Strategic managers and Quality Assurance Managers from the 39 ISO certified manufacturing firms in Kenya. A total of 117 respondents. 102 questionnaires were properly filled and returned. Structural equation modelling (SEM) and multiple Regression analysis were used to analyse the relationships between cost leadership strategy, TQM and financial performance. The finding indicated that TQM partially mediates the relationship between cost leadership strategy and financial performance of manufacturing firms in Kenya.