Soft TQM practices and organizational performance: serial mediation by hard TQM practices and operational performance

Purpose Public manufacturing companies in developing countries, such as Ethiopia, increasingly adopt total quality management (TQM) and ISO certification to enhance competitiveness and improve performance. However, limited empirical evidence explains how Soft TQM practices influence organizational performance through Hard TQM practices and operational performance, particularly in developing country contexts. Existing studies rarely examine these relationships using a serial mediation framework, and research focusing on ISO certified public manufacturing companies in Ethiopia is scarce. This paper aims to address this gap by investigating the effect of Soft TQM practices on organizational performance and evaluating the serial mediating roles of Hard TQM practices and operational performance, providing context specific evidence on how TQM practices contribute to performance improvement in emerging economy public manufacturing sectors. Design/methodology/approach A quantitative research design was used, collecting data from 340 employees across three ISO certified public manufacturing companies in Addis Ababa, Ethiopia. Data were gathered using a structured questionnaire and simple random sampling. Exploratory factor analysis, correlation analysis and serial mediation analysis were conducted, and the hypothesized mediation pathways were tested using the PROCESS Macro (Model 6) in SPSS version 26. Findings The results show that Soft TQM practices have a significant positive effect on organizational performance. Hard TQM practices mediate the relationship between Soft TQM practices and organizational performance, while operational performance also serves as a mediator. Additionally, Hard TQM practices and operational performance jointly provide a serial mediation pathway through which Soft TQM practices enhance organizational performance. Practical implications The findings offer important implications for ISO certified public manufacturing companies in developing countries. Strengthening Soft TQM practices such as top management support, customer focus, employee involvement, strategic quality planning, education and training can directly and indirectly improve organizational performance. Investing in Hard TQM practices, including process management, supplier quality management and continuous improvement, reinforces the effectiveness of Soft TQM initiatives. Prioritizing operational performance is also essential, as it serves as a key mechanism linking TQM practices to improved organizational outcomes. Originality/value To the best of the authors’ knowledge, this research paper is among the first to examine the serial mediating roles of Hard TQM practices and operational performance in the relationship between Soft TQM practices and organizational performance in a developing country context, offering new empirical insights into how TQM practices drive performance improvements.