An assessment of the impact of quality standards on the business performance of small, medium and micro-sized enterprises in KwaZulu-Natal : selected cases in the Durban Metropolitan area

Abstract

The aim of this research is to assess the impact of quality standards on the business performance of SMMEs in KwaZulu-Natal, with specific reference to selected cases in the Durban Metropolitan Area. Over the years, organizations have been frequently criticised for failing to comply with the quality standards such as the SANS 9001 / ISO 9001 that are required for effective implementation of Quality Management Systems and SANS 342 which provides specifications for diesel fuel products. Quality standards are defined as a set of detailed specifications, requirements, various guidelines and characteristics to be adopted in order to provide assurance that the product, service or process is fit for purpose. The perception amongst organizations has often been that systems and products certification do not add value towards improved business processes, best practices and customer satisfaction. It is further argued that product certification is erroneously perceived by organizations as a marketing tool and strategy that is needed for business survival and larger market penetration. The focus of this study is to critically evaluate the correlation between quality standards and organizational performance. Whilst looking at the impact of quality standards, the study critically assesses the holistic approach used in the adoption of quality standards. In order to meet the objectives of this study, the research adopts a mixed method approach. However, the quantitative approach is predominant since data will be collected using completed questionnaires, which can be quantified. This study was restricted to a targeted population and therefore the sample size was limited to twenty SMMEs, comprising ten non-certified SMMEs and ten certified SMMEs. This study adopted a qualitative research approach to collect and analyse data. The research methodology involved the use of semi-structured interviews and questionnaires. The surveys used to collect data involved both certified and non-certified organizations regardless of the type and size of business. Hence the scope covered businesses that manufacture products as well as those rendering services. The hypotheses to be tested and the results emanating from the survey formed an integral part of the research conclusions, recommendations for intervention and contemplated areas for further research. The study established that there is a positive relationship between the adoption of quality standards and business excellence of SMMEs. Based on the findings, several recommendations have been made including the significant role of government in the mitigation of the challenges and barriers associated with the acquisition of statutory quality management systems and compliance of quality standards as experienced by SMMEs