Innovation mediating relationship between TQM and performance: cases of industrial certified companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Khalfallah ◽  
Anis Ben Salem ◽  
Hajer Zorgati ◽  
Lassaad Lakhal
Keyword(s):  
Financial Performance ◽  
Product Innovation ◽  
Process Innovation ◽  
Reciprocal Relationship ◽  
Mediating Effect ◽  
Operational Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Research Studies

PurposeThe purpose of this research is to analyze the reciprocal relation between total quality management (TQM) and innovation (product innovation and process innovation) and their impact on operational and financial performance.Design/methodology/approachThe data were obtained from a survey of 205 manufacturing companies. Structural equation modeling (SEM) was performed to evaluate the research model.FindingsThe results reveal that there is a reciprocal relationship between TQM and innovation. Moreover, the findings indicate a significant positive effect of product innovation and process innovation on operational performance and insignificant direct impact of TQM on operational performance. However, this effect is significant when it is mediated through product innovation and process innovation.Research limitations/implicationsThis paper helps practitioners to understand how TQM practices support both product and process innovation and the role of the latter in promoting the implementation of TQM practices and ensuring operational performance.Originality/valueThis study presents an innovative approach since it is among the first research studies that provide empirical evidence to a reciprocal association between TQM and innovation. Additionally, this paper examines the dimensions studied in different aspects. It considered financial performance and operational performance, and with respect to innovation, this dimension was analyzed through two different perspectives, namely product innovation and process innovation. This study is also among the first and few research studies that have studied the mediating effect of innovation.

The mediating role of product and process innovations on the relationship between knowledge management and operational performance in manufacturing companies in Jordan

2017 ◽  
Vol 23 (2) ◽  
pp. 349-376 ◽  
Author(s):  
Ahmad Fathi Al-Sa’di ◽  
Ayman Bahjat Abdallah ◽  
Samer Eid Dahiyat
Keyword(s):  
Knowledge Management ◽  
Product Innovation ◽  
Process Innovation ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Process Innovations ◽  
Product And Process ◽  
The Relationship

Purpose The purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated. Design/methodology/approach A questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro. Findings The results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship. Practical implications The findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP. Originality/value This is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

The effect of novelty on travel intention: the mediating effect of brand equity and travel motivation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yucheng Zhang ◽  
Jing Li ◽  
Chih-Hsing Liu ◽  
Yimo Shen ◽  
Guiquan Li
Keyword(s):  
Intrinsic Motivation ◽  
Brand Equity ◽  
Structural Equation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
The Relationship ◽  
Night Markets ◽  
Research Studies

PurposeResearch on the relationship between novelty and travel intention is lacking. This study attempts to fill this gap by developing a theoretical model to explain how novelty influences travel intention through two mediating paths: brand equity and tourist motivation.Design/methodology/approachIn this study, data were collected from 466 foreign visitors to Taiwanese night markets. To test the model, the authors applied structural equation modeling (SEM) to identify the critical attributes that predicted foreign tourists' travel intentions.FindingsThe SEM analysis indicated that novelty in tourism management was related to brand equity and intrinsic motivation, which increased foreign tourists' travel intentions and offered advantages for highly competitive, high-density night markets in Taiwan. In addition, brand equity was an important mediator that connected novelty and tourists' travel intentions. Finally, novelty indirectly affected travel intention and intrinsic motivation through brand equity.Research limitations/implicationsThere may exist potential moderators in the relationships among the brand equity and travel intention categories. Future research studies could explore whether any moderators influence the relationship mechanisms examined in this study.Originality/valueThis research expands on previous research studies that have focused on the value of travel intention. Furthermore, the study uses brand equity theory (BET) and the theory of planned behavior (TPB) to examine the mediating effect of intrinsic motivation on the relationship between novelty and travel intention.

Enhancing supply chain performance through collaborative planning, forecasting, and replenishment

2019 ◽  
Vol 25 (4) ◽  
pp. 625-646 ◽  
Author(s):  
Hassan Barau Singhry ◽  
Azmawani Abd Rahman
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Collaborative Planning ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Supply Chain Performance ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type

Purpose Despite the importance of collaborative planning, forecasting, and replenishment (CPFR), its influence on supply chain innovation capability (SCIC) and supply chain performance (SCP) has not been sufficiently examined. The purpose of this paper is to examine the antecedence of SCP through CPFR and SCIC. Design/methodology/approach Through cluster and stratified random sampling, 286 responses from top managers of 1,574 Nigerian manufacturing companies were analyzed. Data analysis was performed using structural equation modeling with AMOS graphics. Findings The results show that SCIC has a full mediating effect on the relationship between CPFR and SCP. Specifically, CPFR has a significant relationship with both SCP and SCIC, and SCIC also relates significantly to SCP. Practical implications This study offers implications for manufacturers in developing countries in general, and in Nigeria in particular, by providing a guideline on how to improve SCP through CPFR. Originality/value The paper contributes to the limited studies on CPFR and SCP by extending this line of study into the realm of innovation capability and innovation. It integrates the social exchange theory and the dynamic capabilities theory to examine the collaborative processes of CPFR in the supply chain context. This study stressed the importance of boundary theoretical spanning by extending CPFR and SCP into the domain of innovation capability.

Exploring the relationship among human resource flexibility, organizational innovation and adaptability culture

2016 ◽  
Vol 10 (4) ◽  
pp. 657-674 ◽  
Author(s):  
Ben-Roy Do ◽  
Pi-Wen Yeh ◽  
Jean Madsen
Keyword(s):  
Human Resource ◽  
Product Innovation ◽  
Organizational Innovation ◽  
Critical Role ◽  
Process Innovation ◽  
Equation Modeling ◽  
Smart Manufacturing ◽  
Innovative Technology ◽  
High Tech ◽  
Content Type

Purpose Human resource (HR) flexibility is a firm-level capability that consists of employee skill flexibility, employee behavior flexibility, and HR practice flexibility. HR flexibility allows organizations to adapt and be responsive to changes in their environments. Findings from this paper indicate that if the organization is highly innovative and has flexible HR policies, then that influences organizational culture, risk-taking and experimentation within a firm. This paper has also revealed that process innovation mediates between adaptability culture and product innovation. It also revealed that managers should emphasize processes to improve efficiency for resource exploitation. The lessons learned from process innovation activities indicated that having a strong knowledge base assists a firm in developing innovative technology such as automation for manufacturing, handling and testing or simply smart manufacturing. Design/methodology/approach Questionnaires were sent to employees at 23 Taiwanese companies in high-tech industries, where innovation is the key to their survival, and 293 valid surveys were collected. Structural equation modeling, (SEM) using IBM SPSS Amos, was used to test the hypotheses. Findings The results fully support the hypotheses that HR flexibility positively influences adaptability culture and contributes to organizational innovation. Furthermore, it was found that adaptability culture has a direct impact on process innovation and an indirect impact on product innovation through process innovation. Originality/value The critical role of HR flexibility and adaptability culture on organizational innovation in the high-tech sector were highlighted. The importance of HR flexibility is emphasized to provide managerial hints to top managers.

The relationship between innovation and total quality management and the innovation effects on organizational performance

2017 ◽  
Vol 34 (9) ◽  
pp. 1474-1492 ◽  
Author(s):  
Marina Godinho Antunes ◽  
Joaquín Texeira Quirós ◽  
Maria do Rosário Fernandes Justino
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Financial Performance ◽  
Organizational Performance ◽  
Product Innovation ◽  
Process Innovation ◽  
Total Quality ◽  
Content Type ◽  
Innovation Strategies ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between innovation and total quality management (TQM), and also to identify the effects of innovation on organizational performance. This research proposes a conceptual model that intends to study several research hypotheses. Design/methodology/approach The data were obtained through an online questionnaire, sent to small- and medium-sized Portuguese companies, having being conducted the study based on responses received from 287 valid questionnaires, and using a multivariate statistical analysis for statistical development. Findings The findings indicate that companies that adopt strategies of process innovation get improvements in their performance, both operationally and financially, while product innovation only provides improvements in the financial performance of organizations. It was also found that TQM practices encourage the definition of innovation strategies of products and processes. On the other hand, it was found that only companies that adopt innovation strategies of their processes promote the adoption of TQM practices, and there is a statistically significant relationship between product innovation and the implementation of TQM practices. Originality/value This research analyzed the dimensions studied in different aspects. It considered product innovation and process innovation, and with respect to performance, this dimension was analyzed through two different perspectives, namely, financial performance and operational performance. This research also provides a particular contribution to the literature with the analysis of the interdependencies between innovation and TQM in small- and medium-sized Portuguese companies.

Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs

2017 ◽  
Vol 13 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Priyanka Jain ◽  
Vishal Vyas ◽  
Ankur Roy
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Geographical Area ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.

Antecedents of kaizen culture and its effect on operational performance: perspective of manufacturing companies in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kong Siew Mui ◽  
Rajendran Muthuveloo ◽  
Josephine Ie Lyn Chan
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Online Survey ◽  
Dynamic Capabilities ◽  
Organizational Innovation ◽  
Operational Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Electronic Manufacturing

PurposeThe purpose of this research is to examine the effect of kaizen culture on innovation and operational performance of electrical and electronic manufacturing companies in Malaysia. A research framework, with underpinning theories of dynamic capabilities and socio-technical systems, was conceptualized to investigate the interplay of these relationships.Design/methodology/approachData were collected from 123 manufacturing companies using an online survey and analyzed with IBM SPSS Statistics version 24.0 and the partial least squares structural equation modeling (PLS-SEM) (SmartPLS) version 3.2.8.FindingsUltimately, the findings proved that kaizen culture is crucial for organizations to optimize their operational performance and can be nurtured through the implementation of process innovation and organizational innovation.Originality/valueUnlike past studies, this research examines the concepts of innovation, kaizen culture and operational performance in a single study; thus, provides further opportunities for new discoveries through such relationships. Also, the novelty is identifying that kaizen culture can be nurtured via innovation.

Mastering innovation in the manufacturing sector

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Product Innovation ◽  
Manufacturing Sector ◽  
Service Innovation ◽  
Process Innovation ◽  
Manufacturing Companies ◽  
Content Type ◽  
Essential Condition ◽  
Digital Service ◽  
Positive Effects ◽  
Machinery Manufacturing

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on understanding the types of innovation that can boost the profit margins of manufacturing companies in Spain. Digital service innovation can be a welcome factor that meshes with product innovation and process innovation, to enhance profits within defined manufacturing sub-sectors – namely computer manufacturing and machinery manufacturing. These processes should be introduced and pursued simultaneously, as an essential condition for producing positive effects on profitability. In other sub-sectors, the digital service innovation isn't required, since this merely adds a neutral impact to the profit-driving effects of the effective duo of process innovation and product innovation. Originality/value The briefing saves busy executives, strategists and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Innovation capability configuration and its influence on the relationship between perceived innovation requirement and organizational performance

2018 ◽  
Vol 29 (8) ◽  
pp. 1316-1331 ◽  
Author(s):  
Ming-Feng Su ◽  
Kuo-Chih Cheng ◽  
Shao-Hsi Chung ◽  
Der-Fa Chen
Keyword(s):  
Organizational Performance ◽  
Product Innovation ◽  
Information Quality ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Innovation Capability ◽  
Manufacturing Companies ◽  
Content Type ◽  
Innovation Capacity ◽  
The Relationship

Purpose When the management of an information technology (IT) manufacturing firm perceives a need for innovation due to any threat in the external environment, it will be prompted to use organizational resources to support innovation and improve organizational performance through the implementation of the innovation. The purpose of this paper is to explore whether an IT manufacturing firm’s budget slack, information quality of information system (IS), process innovation and product innovation would interact to collectively form an innovation capacity, which is termed “innovation capability configuration (ICC)”, and whether ICC mediates the relationship between perceived innovation requirement and organizational performance. Design/methodology/approach To answer these questions, a structural equation model was built and a questionnaire survey was conducted to collect data from research and development and production managers of IT manufacturing companies listed on the Taiwan Stock Exchange and Over-The-Counter markets. Findings The results showed that budget slack, IS information quality, process innovation and product innovation are all significantly related to ICC, in which high-quality information and low level of budget slack are the key factors that underpin the innovation capacity. In addition, ICC has a full mediation effect, that is, perceived innovation requirement positively influences ICC, which, in turn, improves organizational performance. Research limitations/implications Because all items in a questionnaire were answered by a manager, the common method variance might exist in this study. In addition, the effective recovery rate of the questionnaire was not high due to which the non-response bias might occur. Following the research limitations, several future research recommendations are proposed. Practical implications This study offers managerial implications for the development of an IT manufacturing firm’s innovation strategy and structure to smooth the implementation of innovation in the severe environment. Originality/value The study is the first attempt to integrate the four elements clearly illustrating the ICC, which is a more complete innovation strategy, thus contributing to improve the past fragmental studies and clarify some controversial points existing in the extant innovation research.

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