Financial and Market Performance-Driven TQM: The Mediating Roles of Supply Chain Resilience and Corporate Social Performance

Total quality management (TQM) is widely regarded as a critical approach for improving firm performance, yet evidence on the mechanisms linking TQM practices to financial and market outcomes remains fragmented, with most prior studies testing only direct effects. This study examines whether supply chain resilience (SCR) and corporate social performance (CSP) mediate the relationship between TQM practices and firms’ financial and market performance (FMP). Drawing on the resource-based view and stakeholder theory, a conceptual model was tested using partial least squares structural equation modeling (PLS-SEM) complemented by necessary condition analysis (NCA), based on survey data from 330 firms operating in Saudi Arabia. The results show that TQM practices do not have a significant direct effect on FMP but have strong positive effects on SCR and CSP. SCR and CSP, in turn, significantly predict FMP, and both fully mediate the TQM–FMP relationship (indirect effects: 0.381 via SCR; 0.252 via CSP). The NCA further identifies SCR and CSP as necessary conditions for achieving higher FMP. The findings indicate that the financial and market benefits of TQM are realized through building resilient supply chains and stronger social performance, rather than directly. These results offer managers and policymakers a clearer roadmap for translating TQM investments into sustainable performance outcomes.