Can TQM Act as stimulus to elevate firms’ innovation performance? An empirical evidence from the manufacturing sector of Pakistan

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.