Mediator effect of TPM between TQM and business performance in Malaysia automotive industry

Abstract

Total Quality Management (TQM) is vital management tool in ensuring a company can success in the continuously growing competition in the global market. In order to survive in the global market with intense competition amongst regions and enterprises, the adoption of tools and techniques are essential in improving business performance. However, only few previous studies have examined the mediators and moderators between TQM and business performance. This present research proposed a TQM performance model with mediator effect of TPM with structural equation modelling, which is a more comprehensive model for developing countries, specifically for Malaysia. A questionnaire was prepared and sent to 1500 companies from automotive industry and the related vendors in Malaysia, giving a 21.3 per cent rate. The result concludes that TPM is partial mediation between and TQM and Business Performance with indirect effect (IE) is 0.25 which can be categorised as high mediator effect.