Exploring the Links between TQM Practices, Business Innovativeness and Firm Performance: An Emerging Market Perspective

Abstract

It has been seen that due to intense forces of globalization, technological changes and changes in customers’ demand textile sector of Pakistan is far behind than its international competitors. The concept of TQM practices and innovation has become a major component of competitiveness from a variety of discipline. The objective of the current study is to explore the links between TQM practices, business innovativeness (BI), firm’s production performance (PP), market performance (MP) and financial performance (FP) with mediating role of BIand PP in the relationship between TQM and MP and between the TQM and FP of firms in textile sector of Pakistan. Data from 219 textile firms are collected through an adapted questionnaire. We have used the structural equation modelling approach using AMOS. The results reveal a positive and significant impact of TQM on firm performance measures and BI and also found PPand business innovativeness as partial mediators. The study will be helpful for researchers, practitioners, managers and policymakers.