Inter-functional Coordination as a Pathway between Servant Leadership and the Implementation of TQM Practices

Abstract

Despite increasing studies on the importance of servant leadership as a fundamental contextual factor determining the implementation of TQM practices, recent studies have not thoroughly investigated the mechanisms that link servant leadership to implementing customer focus, people management, process management, strategic planning, information, and analysis. Hence, the main purpose of this study is to explore the role of servant leadership in the implementation of the five TQM practices and showcase whether inter-functional coordination mediates the link between servant leadership and these TQM practices. We surveyed 203 leaders in 104 firms located in Finfinne/Addis Ababa and surrounding cities to investigate the mediating roles of inter-functional coordination in the relationship between servant leadership and the implementation of customer focus, people management, process management, strategic planning, information, and analysis. To achieve this aim, we tested a structural model through an empirical investigation with SEM and bootstrapping methods. The results indicated that servant leadership was directly and positively related to implementing TQM practices. Furthermore, results showed that inter-functional coordination positively and partially mediated the relationship between servant leadership and the five TQM practices. These findings add to the literature by illuminating why servant leadership is positively associated with TQM practices.