The impact of total quality management (TQM) practices on innovation performance

Abstract

The purpose of this study is to investigate the relationship between total quality management (TQM) practices and innovation performance in the manufacturing industry context. The method of confirmatory factor analysis was applied refine the TQM practices and innovation performance scales for empirical analysis in Rawang, Selangor. The correlation coefficient analysis by Person’s method and regression analysis was applied to test the theoretical models. This study confirms the results of previous studies that considered TQM as a set of practices. It confirms that TQM practices have a positive impact on the organization’s innovativeness. It discovers that all variables of TQM practices enhance organization innovativeness, especially people management has showed the highest positive impact on the organization’s innovation performance. The sample of this study was random. Future research should examine the TQM practices and relationship with innovation performance with other constructs in different settings. The study assessed the concept of “Product Innovation” and “Process Innovation” with the company boundaries. Future research should measure the innovativeness of organization including the “Marketing Innovation” and “Service Innovation” within the boundaries of the specific industry. The unclear evidence found in this study on the impact of the organization’s leadership on innovation needs to be further investigated. The findings are useful for business managers in developing countries such as Malaysia, who want to enhance business performance through implementing TQM practices that support their organization’s product and process innovation efforts.