Is Organisational Culture a Necessity in Explaining the Relationship between Market Orientation, Total Quality Management and Innovation Performance?

Abstract

The increasing significance of innovation notion within global market, endeavour on close scrutinises on organisations’ performance, specifically innovation performance. Previous academicians proposed on market orientation, total quality management and organisational culture as the influencer of innovation performance that will be extended and discussed in this study. The successful synergy between market orientation and total quality management assist the firms in transforming market-based knowledge into innovations finished-products following efficient management framework. The research utilises 105 manufacturing firms in Malaysia for data collection. PLS-Structural Equation Modelling is used to analyse the proposed research hypotheses. The findings revealed that market orientation and total quality management has significant indirect effect on innovation performance via organisational culture. The limitations and recommendations for future practices also explained in this research.