The effect of total quality management on financial performance of downstream oil and gas companies in Ghana: the role of regulatory compliance

This study examines the impact of Total Quality Management (TQM) on the financial performance of downstream oil and gas companies in Ghana, with a focus on the moderating role of regulatory compliance. The key TQM components investigated include customer focus, employee involvement, leadership commitment, process management, and supplier management. Data were collected from 650 respondents working in various companies within the downstream oil and gas sector in Ghana through a structured questionnaire. The relationships between TQM components, regulatory compliance, and financial performance were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The study reveals that customer focus, employee involvement, leadership commitment, process management, and supplier management all have direct positive effects on financial performance. Furthermore, the interaction between regulatory compliance and employee involvement, regulatory compliance and supplier management, and regulatory compliance and customer focus showed a significant positive impact on financial performance. However, the interactions of regulatory compliance with leadership commitment and process management were positive but not statistically significant. This study is the first to explore the moderating role of regulatory compliance in the relationship between TQM components and financial performance in Ghana's downstream oil and gas sector, offering valuable insights into how TQM practices and regulatory adherence drive business success.