Relationship of total quality management with corporate sustainability in the MSME sector: does innovation capability play a mediating role?

Abstract

PurposeThis study attempts to find the structural relationship between Total Quality Management (TQM) and Corporate Sustainability (CS) by analyzing the role of Innovation Capability (IC).Design/methodology/approachThe authors conducted the study in the context of manufacturing industries in the Indian Micro Small and Medium Enterprises (MSME) sector. In the process, The authors attempt to throw light on the significance of TQM and IC in bringing out sustainable practices in organizations. The authors used Structural Equation Modeling with AMOS to study the relationship between TQM and CS.FindingsThe authors measured TQM through product control management, process control, vendor quality management and customer relationship improvement. We did find a direct relationship between TQM and CS, along with its three dimensions: environmental sustainability, economic sustainability and social sustainability. TQM was found to be antecedent to IC. IC, measured through product innovation, process innovation and managerial innovation, did not mediate the relation between TQM and CS. However, the link between TQM and social and environmental sustainability partially mediates through IC at the dimension level.Practical implicationsTQM can provide a holistic means of nurturing participation and satisfaction of stakeholders for achieving corporate sustainability and in the process, can create an innovative culture for stimulating a circular social economy.Originality/valueThis study fills the gap in the literature by providing a structural model that explains the relationship between TQM and corporate sustainability and highlights the role of innovation capability in achieving it.

The impact of big data analytics on innovation capability and sustainability performance of hotels: evidence from an emerging economy

“…(2019) explored the relationship between innovation strategies and economic sustainability in the hospitality industry and discovered a positive and significant association between them. Hudnurkar et al . (2022) investigated the role of innovation capability in mediating the relationship between total quality management and corporate sustainability in the micro, small and medium enterprises (MSME) sector.…”

“…A middle element (such as a business's capacity for innovation) is necessary to understand how company BDAC could enhance a firm's sustainability performance. Thus, innovation Capability is frequently seen as a vital element of Dynamic Capability (Hudnurkar et al, 2022). Furthermore, Dangelico et al (2017) claimed that "sustainable-oriented dynamic competence" should be built to plan, design and implement both external and internal organizational resources to enhance business sustainability.…”

“…A middle element (such as a business’s capacity for innovation) is necessary to understand how company BDAC could enhance a firm’s sustainability performance. Thus, innovation Capability is frequently seen as a vital element of Dynamic Capability (Hudnurkar et al. , 2022).…”

“…(2017) claimed that “sustainable-oriented dynamic competence” should be built to plan, design and implement both external and internal organizational resources to enhance business sustainability. Dynamic capabilities theory is more commonly applied in analyzing technically proficient organizations and their firm performance (Hudnurkar et al. , 2022).…”

Role of Total Quality Management Towards Organizational Performance Through Knowledge Transfer and Innovation Capabilities

“…Prior research indicates the need for more studies analysing the effects of the many aspects of quality management on one another and on other factors such as innovation. Thus, researcher examine mediating effect of innovation abilities amid quality management and organizational performance (Hudnurkar et al, 2022).…”