Relationship between Innovation, Quality Practices and Firm Performance: A Study of Service Sector Firms in Pakistan

Abstract

This study explains the relationship between innovations, quality practices and firm performance of service sector firms in Pakistan. The study discusses various types of innovation practices in the service sector based on the Oslo manual and then different types of quality practices based on the EFQM model for quality excellence. In this study a detailed questionnaire was developed to measure the relationship between innovations, quality practices and firm's performance and data was collected from 157 service sector firms offering different types of services. The data was analyzed using different descriptive and inferential statistical techniques and reliability test, factor analysis, correlation analysis and regression analysis. The results show that innovations like organizational innovations have a positive relationship among management leadership, policy and strategy for quality then other innovation types while innovation results, employee results have a more positive relationship with process innovations and employee management techniques. Finally the study discusses the limitations and scope for future research in the area.

Service Innovation, Marketing Innovation and Customer Satisfaction: Moderating Role of Competitive Intensity

“…Additionally, our findings show that Marketing innovation foster Customer satisfaction. This result is consistent with other arguments in the literature (Zuñiga-Collazos & Castillo-Palacio, 2016) that Marketing innovation foster customer satisfaction and company’s image (Schubert, 2010; Varis & Littunen, 2010), facilitate entry to new markets (Lee et al, 2015; Raja & Wei’s, 2014; Senguo & Kilango, 2015). Microfinance banks can use social media to advertise their products and improve customer relationships.…”

The relationship between EFQM enablers and business performance

“…These kinds of relationships have rarely been examined in one single study and have important implications for academics and managers in today’s dynamic and competitive environment. Previous contributions have shown the lack of consensus over the potential effects of QM on innovation and business performance (Escrig-Tena et al , 2018; Raja and Wei, 2014; Santos-Vijande and Álvarez-González, 2007). The idea is that firms’ performance is embedded on their innovation capability and can be strengthened through effective implementation of EFQM enablers.…”

Implementasi Total Quality Management dan Innovation Capability dalam Meningkatkan Quality Performance

“…Dengan demikian, perusahaan telah memperhatikan bahwa kualitas kinerja adalah faktor utama yang penting untuk mengembangkan produk dan layanan untuk mendorong pencapaian yang berkelanjutan (Boateng-Okrah, 2012). Dalam mencapai kualitas kinerja yang bagus perusahaan harus mengimplementasikan Innovation Capability ( Raja, 2014;James Agarwal, 2014). Sehingga penting untuk dilakukan penelitian untuk mengetahui implementasi Total Quality Management dan Innovation Capability dalam meningkatkan Kualitas Kinerja.…”

“…Ho ditolak, sehingga hipotesis ketiga yang menyatakan bahwa innovation capability mempunyai pengaruh yang positif terhadap quality performance terbukti. Hal ini juga sesuai dengan hasil penelitian yang dilakukan oleh Raja (2014), menyatakan bahwa ada pengaruh positif dan signifikan dari innovation capability terhadap quality performance. Begitu juga penelitian yang dilakukan oleh James Agarwal, (2014), mengungkapkan bahwa dari tiga jenis innovation capability yang diteliti, semuanya memiliki pengaruh yang positif dan signifikan terhadap quality performance.…”