The relationship between TQM practices, quality performance, and innovation performance

This empirical study examines the relationship between total quality management (TQM) and innovation performance and compares the nature of this relationship against quality performance. The empirical data were obtained from a survey of 194 managers in Australian industry encompassing both manufacturing and non‐manufacturing sectors. The structural equation modeling technique was used to examine the relationships between TQM and quality performance as well as innovation performance, simultaneously. The findings suggest that TQM significantly and positively relates to both product quality and product innovation performance although it appears that the magnitude of the relationship is greater against product quality. In addition, significant causal relationships between quality performance and innovation performance were found, suggesting that achievement of one aspect of performance could impact the other.