The mediation role of innovation in the relationship between total quality management and performance of small and medium scale enterprises

Abstract

PurposeThis study examined the mediation-moderation role of innovation and market dynamism in the association between total quality management (TQM) practices and the performance of small and medium-scale enterprises' (SMEs') performance with empirical evidence from sub-Saharan Africa.Design/methodology/approachUsing a questionnaire, the research model developed was tested with responses from 203 owners and managers of SMEs in Ghana. The analyses were done using Statistical Package for the Social Sciences (SPSS) and Smart Partial Least Squares Structural Equation Modeling (PLS-SEM).FindingsThe innovation initiatives partially and fully mediated the relationship between TQM practices and the performance of SMEs. Also, the indirect effect of TQM practices of SMEs on performance through innovation initiatives was negatively moderated by market dynamism.Practical implicationsThe study contributes to the TQM literature by validating the indirect and direct relationship between TQM practices and performance in the context of SMEs in a developing region.Originality/valueThis paper presents a novel understanding of the relationship between TQM and SMEs in developing regions of the world. The paper serves as a guide for SME owners and managers to improve the performance of their organizations through TQM practices.