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Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms

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  • Sadikoglu, Esin
  • Zehir, Cemal
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    Abstract

    The results from studies of the relationship between total quality management (TQM) practices and firm performance and from those on the effects of TQM practices on various types of performance measures are mixed. There is no extensive empirical evidence about the effect of TQM practices on employee performance and innovation performance, and few empirical studies have investigated the mediating effect (indirect relationship) of one type of performance measure on the relationship between TQM practices and another type of performance measure. The objective of this study was to investigate the relationships between TQM practices and multiple performance measures and to examine the mediating effects of employee performance and innovation performance on the relationship between TQM practices and firm performance. The study used a cross-sectional survey methodology--we sent questionnaires to 500 randomly selected ISO 9001:2000 certified firms in different industries in the Marmara region in Turkey in 2005 and 2006 and obtained 373 usable questionnaires. After confirming the validity and reliability of the latent variables with confirmatory and exploratory factor analyses, we tested the model and hypotheses using structural equation modeling. Results of the study support the proposed hypotheses that employee performance and innovation performance partially mediate the relationship between TQM practices and firm performance. The study also provides managerial and research implications, research limitations, and suggestions for future studies.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 127 (2010)
    Issue (Month): 1 (September)
    Pages: 13-26

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    Handle: RePEc:eee:proeco:v:127:y:2010:i:1:p:13-26

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Total quality management Performance Structural equation modeling Empirical research;

    References

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    1. Anderson, Ronald D. & Jerman, Roger E. & Crum, Michael R., 1998. "Quality management influences on logistics performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(2), pages 137-148, June.
    2. Yang, Jie & Wong, Christina W.Y. & Lai, Kee-hung & Ntoko, Alfred Ngome, 2009. "The antecedents of dyadic quality performance and its effect on buyer-supplier relationship improvement," International Journal of Production Economics, Elsevier, vol. 120(1), pages 243-251, July.
    3. Conca, Francisco Jose & Llopis, Juan & Tari, Juan Jose, 2004. "Development of a measure to assess quality management in certified firms," European Journal of Operational Research, Elsevier, vol. 156(3), pages 683-697, August.
    4. Rahman, Shams-ur & Bullock, Philip, 2005. "Soft TQM, hard TQM, and organisational performance relationships: an empirical investigation," Omega, Elsevier, vol. 33(1), pages 73-83, February.
    5. Mazzanti, Massimiliano & Pini, Paolo & Tortia, Ermanno, 2006. "Organizational innovations, human resources and firm performance: The Emilia-Romagna food sector," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 123-141, February.
    6. Soltani, Ebrahim & van der Meer, Robert & Gennard, John & Williams, Terry, 2003. "A TQM Approach to HR Performance Evaluation Criteria," European Management Journal, Elsevier, vol. 21(3), pages 323-337, June.
    7. Kevin B. Hendricks & Vinod R. Singhal, 1996. "Quality Awards and the Market Value of the Firm: An Empirical Investigation," Management Science, INFORMS, vol. 42(3), pages 415-436, March.
    8. Kannan, Vijay R. & Tan, Keah Choon, 2005. "Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance," Omega, Elsevier, vol. 33(2), pages 153-162, April.
    9. Kevin B. Hendricks & Vinod R. Singhal, 1997. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards," Management Science, INFORMS, vol. 43(9), pages 1258-1274, September.
    10. Easton, George S & Jarrell, Sherry L, 1998. "The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation," The Journal of Business, University of Chicago Press, vol. 71(2), pages 253-307, April.
    11. Forza, Cipriano & Filippini, Roberto, 1998. "TQM impact on quality conformance and customer satisfaction: A causal model," International Journal of Production Economics, Elsevier, vol. 55(1), pages 1-20, June.
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    Cited by:
    1. Lin, Chin-Sen & Su, Chao-Ton, 2013. "The Taiwan national quality award and market value of the firms: An empirical study," International Journal of Production Economics, Elsevier, vol. 144(1), pages 57-67.
    2. Agarwal, Renu & Green, Roy & Brown, Paul J. & Tan, Hao & Randhawa, Krithika, 2013. "Determinants of quality management practices: An empirical study of New Zealand manufacturing firms," International Journal of Production Economics, Elsevier, vol. 142(1), pages 130-145.
    3. Sharif, Amir M. & Irani, Zahir, 2012. "Supply Chain Leadership," International Journal of Production Economics, Elsevier, vol. 140(1), pages 57-68.
    4. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    5. Llorenç Bagur & Jordi Perramon & Oriol Amat, 2013. "Impact of quality and environmental investment on business competitiveness and profitability: The case of travel agencies," Economics Working Papers 1376, Department of Economics and Business, Universitat Pompeu Fabra.
    6. Mackelprang, Alan W. & Jayaram, Jayanth & Xu, Kefeng, 2012. "The influence of types of training on service system performance in mass service and service shop operations," International Journal of Production Economics, Elsevier, vol. 138(1), pages 183-194.
    7. Hong, Paul & Doll, William J. & Revilla, Elena & Nahm, Abraham Y., 2011. "Knowledge sharing and strategic fit in integrated product development proejcts: An empirical study," International Journal of Production Economics, Elsevier, vol. 132(2), pages 186-196, August.

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