Relationship between quality management, innovation and competitiveness. Evidence from Greek companies

Abstract

Purpose– The purpose of this paper is to examine the extent to which five core dimensions of quality management, as a single factor, are associated with product innovation and process innovation; and finally how these two affect a firm’s competitive advantage in the market.Design/methodology/approach– The analysis followed in order to investigate the relations between the constructs of the proposed model, includes an initial exploratory factor analysis (EFA), followed by confirmatory factor analysis (CFA) and finally structural equation modelling (SEM)Findings– According to the study findings, quality management (QM) directly contributes to product and process innovation. Furthermore, product and process innovation have a direct impact on companies’ competitive advantage. Thus, the study proves that QM is an opportunity for a firm to improve its innovation and consequently its competitiveness.Research limitations/implications– This study relies on the perceptions of the respondents to operationalize the survey instrument. In addition, all variables are measured in the year that the survey was carried out. However, since the research exams the relationship between QM, technical innovation and competitive advantage across various organizations, it would be interesting to conduct a longitudinal study within these organizations.Practical implications– Our study offers clear implications for managers, proving that they should give higher emphasis on QM and innovation in order to prioritize their product, production and technology strategies, to achieve sustainable competitive advantage.Originality/value– Based on the multi-dimensional structure of QM, this empirical study determines the contribution of QM to specific innovation performance and overall competitiveness of companies.