IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v10y2020i4p2158244020963669.html
   My bibliography  Save this article

Can TQM Act as Stimulus to Elevate Firms’ Innovation Performance?: An Empirical Evidence From the Manufacturing Sector of Pakistan

Author

Listed:
  • Naveed Mushtaq
  • Wong Wai Peng

Abstract

The current research empirically investigated whether total quality management (TQM) as a multidimensional construct (organic and mechanistic) has a better explanatory power toward innovation performance dimensions with the mediating effect of business innovation capability (BIC) and moderating effect of business innovation culture. After an in-depth examination of the literature, a holistic TQM–BIC–innovation performance framework is being developed based on theoretical knowledge as well as empirical justification. This would help scholars and practitioners to comprehend ways through which quality and innovation are integrated. To this end, structural equation modeling–partial least squares (SEM-PLS) is used for analyzing the data. It has been found that both soft and hard TQM trigger innovation performance and firm BIC mediates this relationship. Lastly, the role of business innovation culture in enhancing firm’s radical innovation performance was empirically established. Thus, developing BIC and business innovation culture in a TQM-based firm could trigger innovating performance.

Suggested Citation

  • Naveed Mushtaq & Wong Wai Peng, 2020. "Can TQM Act as Stimulus to Elevate Firms’ Innovation Performance?: An Empirical Evidence From the Manufacturing Sector of Pakistan," SAGE Open, , vol. 10(4), pages 21582440209, November.
  • Handle: RePEc:sae:sagope:v:10:y:2020:i:4:p:2158244020963669
    DOI: 10.1177/2158244020963669
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2158244020963669
    Download Restriction: no

    File URL: https://libkey.io/10.1177/2158244020963669?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vesa Harmaakorpi & Sanna Pekkola, 2008. "Breaking inside the black box: towards a dynamic evaluation framework for regional innovative capability," Science and Public Policy, Oxford University Press, vol. 35(10), pages 733-744, December.
    2. Valentina Lazzarotti & Raffaella Manzini, 2009. "Different Modes Of Open Innovation: A Theoretical Framework And An Empirical Study," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 615-636.
    3. Paul Trott & Dap Hartmann, 2009. "Why 'Open Innovation' Is Old Wine In New Bottles," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 715-736.
    4. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    5. 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.
    6. Lau, Chung-Ming & Ngo, Hang-Yue, 2004. "The HR system, organizational culture, and product innovation," International Business Review, Elsevier, vol. 13(6), pages 685-703, December.
    7. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    8. Branzei, Oana & Vertinsky, Ilan, 2006. "Strategic pathways to product innovation capabilities in SMEs," Journal of Business Venturing, Elsevier, vol. 21(1), pages 75-105, January.
    9. Kevin Zheng Zhou & Fang Wu, 2010. "Technological capability, strategic flexibility, and product innovation," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 547-561, May.
    10. Chung, Seungwha (Andy) & Kim, Gyeong Mook, 2003. "Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint," Research Policy, Elsevier, vol. 32(4), pages 587-603, April.
    11. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    12. Silva, Maria José & Leitão, João, 2007. "What Determines the Entrepreneurial Innovative Capability of Portuguese Industrial Firms?," MPRA Paper 5216, University Library of Munich, Germany.
    13. Koellinger, Philipp, 2008. "The relationship between technology, innovation, and firm performance--Empirical evidence from e-business in Europe," Research Policy, Elsevier, vol. 37(8), pages 1317-1328, September.
    14. Salih Yeşil & Tuba Büyükbeşe & Alaeddin Koska, 2013. "Exploring The Link Between Knowledge Sharing Enablers, Innovation Capability And Innovation Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-20.
    15. 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.
    16. Hung, Richard Yu Yuan & Lien, Bella Ya-Hui & Yang, Baiyin & Wu, Chi-Min & Kuo, Yu-Ming, 2011. "Impact of TQM and organizational learning on innovation performance in the high-tech industry," International Business Review, Elsevier, vol. 20(2), pages 213-225, April.
    17. Anker Lund Vinding, 2006. "Absorptive capacity and innovative performance: A human capital approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 507-517.
    18. Choonwoo Lee & Kyungmook Lee & Johannes M. Pennings, 2001. "Internal capabilities, external networks, and performance: a study on technology‐based ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 615-640, June.
    19. Steinle, Claus & Schiele, Holger, 2002. "When do industries cluster?: A proposal on how to assess an industry's propensity to concentrate at a single region or nation," Research Policy, Elsevier, vol. 31(6), pages 849-858, August.
    20. Koellinger, Ph.D., 2008. "The Relationship between Technology, Innovation, and Firm Performance: Empirical Evidence on E-Business in Europe," ERIM Report Series Research in Management ERS-2008-031-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    21. Martín-de Castro, Gregorio & Delgado-Verde, Miriam & Navas-López, José E. & Cruz-González, Jorge, 2013. "The moderating role of innovation culture in the relationship between knowledge assets and product innovation," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 351-363.
    22. Titus Jr., Varkey K. & Covin, Jeffrey G. & Slevin, Dennis P., 2011. "Aligning strategic processes in pursuit of firm growth," Journal of Business Research, Elsevier, vol. 64(5), pages 446-453, May.
    23. Shaker A. Zahra & Donald O. Neubaum & Galal M. El–Hagrassey, 2002. "Competitive Analysis and New Venture Performance: Understanding the Impact of Strategic Uncertainty and Venture Origin," Entrepreneurship Theory and Practice, , vol. 27(1), pages 1-28, January.
    24. Prajogo, Daniel I. & Sohal, Amrik S., 2006. "The integration of TQM and technology/R&D management in determining quality and innovation performance," Omega, Elsevier, vol. 34(3), pages 296-312, June.
    25. Salaheldin Ismail Salaheldin, 2009. "Critical success factors for TQM implementation and their impact on performance of SMEs," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 58(3), pages 215-237, March.
    26. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    27. Yang, Ching-Chiao & Marlow, Peter B. & Lu, Chin-Shan, 2009. "Assessing resources, logistics service capabilities, innovation capabilities and the performance of container shipping services in Taiwan," International Journal of Production Economics, Elsevier, vol. 122(1), pages 4-20, November.
    28. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    29. Benn Lawson & Danny Samson, 2001. "Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 377-400.
    30. Billie Jo Zirger & Modesto A. Maidique, 1990. "A Model of New Product Development: An Empirical Test," Management Science, INFORMS, vol. 36(7), pages 867-883, July.
    31. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    32. Zeng, Jing & Anh Phan, Chi & Matsui, Yoshiki, 2015. "The impact of hard and soft quality management on quality and innovation performance: An empirical study," International Journal of Production Economics, Elsevier, vol. 162(C), pages 216-226.
    33. Paula Jarzabkowski & Julia Balogun, 2009. "The Practice and Process of Delivering Integration through Strategic Planning," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1255-1288, December.
    34. Robert M. Grant, 2003. "Strategic planning in a turbulent environment: evidence from the oil majors," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 491-517, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dibrell, Clay & Craig, Justin B. & Neubaum, Donald O., 2014. "Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance," Journal of Business Research, Elsevier, vol. 67(9), pages 2000-2007.
    2. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    3. Singh, Vedant & Kumar, Akshay & Singh, Tej, 2018. "Impact of TQM on organisational performance: The case of Indian manufacturing and service industry," Operations Research Perspectives, Elsevier, vol. 5(C), pages 199-217.
    4. Adel Ben Khalifa, 2019. "Direct and Complementary Effects of Investment in Knowledge-Based Economy on Innovation Performance in Tunisian Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 561-589, June.
    5. Antonelli, Cristiano, 2017. "Digital knowledge generation and the appropriability trade-off," Telecommunications Policy, Elsevier, vol. 41(10), pages 991-1002.
    6. Escrig-Tena, Ana B. & Segarra-Ciprés, Mercedes & García-Juan, Beatriz & Beltrán-Martín, Inmaculada, 2018. "The impact of hard and soft quality management and proactive behaviour in determining innovation performance," International Journal of Production Economics, Elsevier, vol. 200(C), pages 1-14.
    7. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    8. Neda Barqawi & Lars Mathiassen & Kamran Syed & Saloni Firasta Vastani, 2016. "Balancing Coordination And Autonomy During Post-Acquisition Within A High-Tech Firm," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-32, April.
    9. Younès El Manzani & Mostapha El Idrissi & Zakaria Lissaneddine, 2022. "Soft quality management practices and product innovation ambidexterity: the mediating role of market orientation ambidexterity," Post-Print hal-04317941, HAL.
    10. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    11. Camisón, César & Villar-López, Ana, 2014. "Organizational innovation as an enabler of technological innovation capabilities and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2891-2902.
    12. Tedjo Soelaksono & Achmad Sudiro & Mintarti Rahayu & Sudjatno Sudjatno, 2018. "The Influence of Capability Managerial on Competitiveness of the Company through the Planning Strategy, Investment, Innovation and Performance of the Company (a Study on Corporate Manufacturing Indust," International Review of Management and Marketing, Econjournals, vol. 8(2), pages 22-32.
    13. Heira Georgina Valdez-Bocanegra & Gonzalo Maldonado-Guzmán & Carmen Castrejón-Mata, 2020. "The Entrepreneurial Orientation and its Impact on Competitiveness and Growth: Empirical Evidence in the State of Aguascalientes in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(3), pages 1-6.
    14. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    15. Younès El Manzani & Mohamed Larbi Sidmou & Jean-Jack Cegarra, 2018. "Does IS0 9001 quality management system support product innovation? An analysis from the sociotechnical systems theory," Post-Print hal-03080217, HAL.
    16. Ru-Jen Lin & Rong-Huei Chen & Thao-Minh Ho, 2013. "Market Demand, Green Innovation, and Firm Performance: Evidence from Hybrid Vehicle Industry," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    17. Ifrah Quais & Danish Ahmed Siddiqui, 2017. "Measuring the Performance of Logistics Industry in the Context of Karachi," Information Management and Business Review, AMH International, vol. 9(5), pages 24-34.
    18. Kong YuSheng & Masud Ibrahim, 2020. "Innovation Capabilities, Innovation Types, and Firm Performance: Evidence From the Banking Sector of Ghana," SAGE Open, , vol. 10(2), pages 21582440209, May.
    19. Mathew, Nanditha & Paily, George, 2020. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," MERIT Working Papers 2020-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    20. , Aisdl, 2020. "The Impact of Innovation on the Performance of Manufacturing Enterprises in Vietnam," OSF Preprints byjhc, Center for Open Science.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:10:y:2020:i:4:p:2158244020963669. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.