The impact of TQM on financial and non-financial performance: the mediating role of corporate social responsibility

Abstract

PurposeThis article aims to examine the direct and indirect effect among total quality management (TQM), corporate social responsibility (CSR) and financial and non-financial performance.Design/methodology/approachThe empirical data were collected from a survey of 120 Tunisian certified firms using questionnaires. Structural equation path modeling PLS-SEM) was performed to test the research hypotheses.FindingsThe results indicate that TQM has no direct effect on financial performance (FP), while they positively impact non-financial performance (NFP) and CSR. The study also shows that CSR positively and significantly influences FP and NFP. In addition, it reveals the positive impact of FP on NFP. Furthermore, the results reveal an indirect effect of TQM on financial and non-financial performance through CSR.Originality/valueThe empirical study bridges the gap in the literature by analyzing the direct and indirect effect between TQM, CSR and performance in a single model. It also highlights the important role of CSR between TQM and financial and non-financial performance in the context of emerging countries.