Total Quality Management and Small and Medium-Sized Enterprises’ (SMEs) Performance: Mediating Role of Innovation Speed

Abstract

This study focuses on investigating the role of innovation speed in mediating the relationship between total quality management and small and medium-sized enterprise performance. Cross-sectional data from 484 Nigerian small and medium-sized manufacturing enterprises were collected using judgmental sampling, which was targeted at the owners and managers of small-scale manufacturing enterprises within Nigeria. The obtained data were evaluated using both descriptive and inferential statistical techniques. Hence, the heuristic model for the relationship was subjected to a string of tests using the partial least squares structural equation modeling technique. The results show that total quality management is positively related to operational performance as well as innovation speed, which has a substantial influence on the nexus between total quality management (TQM) and small and medium-sized enterprises’ (SME) performance. The study expands the understanding of innovation, regarding speed and its measures within total quality management, where the five basic dimensions of total quality management are top management quality practices, employee quality management, customer orientation, process management, and employee knowledge and training. Furthermore, the model contributes to the scarce literature on the mediating factors needed to boost the operational performance of small-scale manufacturing firms.