Exploring quality administration management practices on customer retention and satisfaction : case study of small medium micro enterprises at eThekwini Metropolitan area

Abstract

Small Medium Micro Enterprises (SMMEs) play a significant role in many countries’ economic growth and development. However, customer retention and satisfaction remain critical challenges facing SMMEs. This study investigated the effectiveness of quality administration management practices in SMMEs located in the eThekwini Metropolitan Area. The objectives of the study were to examine how quality administration management practices impact customer retention and satisfaction in SMMEs located in the eThekwini Metropolitan area, to comprehend the influence of training and development of employees on quality management practices and customer retention and satisfaction in small and medium-sized enterprises (SMMEs), to recognise how internal and external factors impact quality management practices in SMMEs in the eThekwini Metropolitan area and, to determine the factors that contribute to and hinder customer retention and satisfaction in SMMEs in the eThekwini Metropolitan area and propose integrated, effective quality administration management practices to address these factors. The Quality Administration Management Theory (QAMT) was adopted as a theoretical framework in this study to assert the effective role of administration and management in achieving successful business quality management practices in SMMEs. QAMT’s focus was relevant to small and medium-sized enterprises (SMEs), which often face resource constraints and struggle to implement quality management practices effectively. Due to time constraints, the geographical scope of the study was limited to the eThekwini Metropolitan Area. Potential limitations included the possibility of response bias and a relatively small sample size. The research adopted a quantitative research approach and employed a survey questionnaire to collect data from customers of selected SMMEs. Data was analysed using descriptive statistics and inferential statistics, including t-tests, ANOVA, factor analysis, and regression analysis, through the Statistical Package for the Social Sciences (SPSS) software. The findings of the study indicated that hat continuous improvement with the quality administration management practice significantly influences the customer satisfaction and in return, it positively relates to customer retention. Secondly, the results revealed that the education levels significantly had increasing impact on customer retention perceptions. The study thereafter recommended for SMMEs in the eThekwini Metropolitan area to continue striving for improvement in quality management practices achievable by implementing strategies that cater for customers with different levels of education. Policy frameworks also need to be initiated to develop and promote customer customer retention.