The relationship between EFQM enablers and business performance

The purpose of this paper is to examine the extent to which the five European Foundation for Quality Management (EFQM) model enablers, as the latent factor “enabler excellence,” are associated with business performance, taking into consideration the mediating role of innovation in this relationship.,The analysis followed in order to investigate the relations among the various constructs of the proposed model includes an initial exploratory factor analysis, followed by confirmatory factor analysis and finally structural equation modeling.,According to the study findings, “enabler excellence” and innovation performance directly contribute to business performance. Moreover, this paper concludes that innovation performance partially mediates the effect of excellence enablers on business performance.,This study does not separate between radical and incremental innovation; thus, it would be very interesting to explore this issue in future research. Moreover, it might be useful for researchers to reassess the proposed relationships examining the mediating role of organizational culture.,This study offers clear implications for managers, proving that they should give higher emphasis on quality management (QM) and the four dimensions of innovation in order to achieve increased performance.,Based on the multidimensional structure of the EFQM model, this empirical study determines the contribution of QM to business performance taking into consideration the role of innovation performance as a mediator in this relationship.

[1]  David Gadenne,et al.  An investigation of the hard and soft quality management factors of Australian SMEs and their association with firm performance , 2009 .

[2]  Jorge Iván Pérez Rave,et al.  A relevant literary space on the use of the European Foundation for Quality Management model: current state and challenges , 2017 .

[3]  K. B. Hendricks,et al.  Firm characteristics, total quality management, and financial performance , 2001 .

[4]  Sánchez Rodriguez,et al.  Efecto de los obstáculos financieros sobre la innovación y la productividad en las empresas manufactureras en Colombia , 2020 .

[5]  Uma Kumar,et al.  Relationship between quality management practices and innovation , 2012 .

[6]  Onno S. W. F. Omta,et al.  Innovation capabilities in food and beverages and technology-based innovation projects , 2014 .

[7]  Rodney McAdam,et al.  Investigation of the relationship between total quality and innovation: a research study involving small organisations , 1998 .

[8]  Robert Davies,et al.  Innovation in medium‐sized insurance companies: how marketing adds value , 2000 .

[9]  Mark Goh,et al.  Impact of value chain activities on quality and innovation , 2008 .

[10]  Richard M. Walker,et al.  Management innovation and firm performance: An integration of research findings , 2015 .

[11]  J. Cegarra-Navarro,et al.  Structured knowledge processes and firm performance: The role of organizational agility , 2016 .

[12]  J. Viaene,et al.  Determinants of innovation in small food firms , 2003 .

[13]  F. Bosch,et al.  Management Innovation: Management as Fertile Ground for Innovation , 2013 .

[14]  K. Kilic,et al.  Effects of Innovation Types on Firm Performance , 2011 .

[15]  C. Edquist Systems of Innovation: Technologies, Institutions and Organizations , 1997 .

[16]  Ana Abrunhosa,et al.  Are TQM principles supporting innovation in the Portuguese footwear industry , 2008 .

[17]  D. Prajogo The strategic fit between innovation strategies and business environment in delivering business performance , 2016 .

[18]  Wenyu Dou,et al.  The effects of firm capabilities on external collaboration and performance: The moderating role of market turbulence , 2015 .

[19]  Vimal Kumar,et al.  Relating management problem-solving styles of leaders to TQM focus: an empirical study , 2017 .

[20]  Prakash J. Singh,et al.  Relationship between TQM and innovation: an empirical study , 2004 .

[21]  Ismail Sila,et al.  Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study , 2007 .

[22]  A. Sohal,et al.  The relationship between TQM practices, quality performance, and innovation performance: An empirical examination , 2003 .

[23]  Barbara B. Flynn The Relationship between Quality Management Practices, Infrastructure and Fast Product Innovation , 1994 .

[24]  Daniel Indarto Prajogo,et al.  The effect of TQM on performance in R&D environments: A perspective from South Korean firms , 2008 .

[25]  D. Jiménez-Jiménez,et al.  Innovation, organizational learning, and performance , 2011 .

[26]  Giselle Rampersad,et al.  Managing innovation networks: Exploratory evidence from ICT, biotechnology and nanotechnology networks , 2010 .

[27]  Yoshiki Matsui,et al.  The impact of hard and soft quality management on quality and innovation performance: An empirical study ☆ , 2015 .

[28]  Ana B. Escrig-Tena,et al.  To what extent do enablers explain results in the EFQM excellence model?: An empirical study , 2005 .

[29]  Arturo Calvo-Mora,et al.  Contextual and mediation analysis between TQM critical factors and organisational results in the EFQM Excellence Model framework , 2015 .

[30]  T. C. Powell Total Quality Management as Competitive Advantage , 1995 .

[31]  P. Ahmed,et al.  Relationships between Innovation Stimulus, Innovation Capacity, and Innovation Performance , 2006 .

[32]  Arturo Calvo-Mora,et al.  The relationships between soft-hard TQM factors and key business results , 2013 .

[33]  D. Kafetzopoulos,et al.  Relationship between quality management, innovation and competitiveness. Evidence from Greek companies , 2015 .

[34]  Charlie Karlsson,et al.  Persistence of various types of innovation analyzed and explained , 2015 .

[35]  Merce Bernardo,et al.  Integration of management systems as an innovation: a proposal for a new model , 2014 .

[36]  Amrik S. Sohal,et al.  The relationship between organization strategy, total quality management (TQM), and organization performance--the mediating role of TQM , 2006, Eur. J. Oper. Res..

[37]  Jesús Perdomo-Ortiz,et al.  An analysis of the relationship between total quality management-based human resource management practices and innovation , 2009 .

[38]  Juan A. Martínez-Román,et al.  Analysis of innovation in SMEs using an innovative capability-based non-linear model: A study in the province of Seville (Spain) , 2011 .

[39]  Alain Yee-Loong Chong,et al.  Does TQM support innovation performance in Malaysia's manufacturing industry? , 2012 .

[40]  Arturo Calvo-Mora,et al.  Quantitative research on the EFQM excellence model: A systematic literature review (1991–2015) , 2017 .

[41]  Denis A. Coelho,et al.  Integrated total quality management: Beyond zero defects theory and towards innovation , 2011 .

[42]  Qin Su,et al.  The relationship between quality management and new product development: evidence from China , 2015 .

[43]  Micaela Martínez-Costa,et al.  Does quality management foster or hinder innovation? An empirical study of Spanish companies , 2008 .

[44]  P. Ahmed Culture and climate for innovation , 1998 .

[45]  C. Voss,et al.  Quality management re-visited: a reflective review and agenda for future research , 2002 .

[46]  Song Wei,et al.  Relationship between Innovation, Quality Practices and Firm Performance: A Study of Service Sector Firms in Pakistan , 2014 .

[47]  R. Evangelista,et al.  The economic impact of technological and organizational innovations. A firm-level analysis , 2010 .

[48]  José Luis Roldán,et al.  The role of strategic planning in excellence management systems , 2016, Eur. J. Oper. Res..

[49]  Ana B. Escrig-Tena,et al.  An empirical assessment of the EFQM Excellence Model: Evaluation as a TQM framework relative to the MBNQA Model , 2009 .

[50]  Cheng-Feng Cheng,et al.  Exploring the impact of innovation strategy on R&D employees’ job satisfaction: A mathematical model and empirical research , 2010 .

[51]  Amrik S. Sohal,et al.  The multidimensionality of TQM practices in determining quality and innovation performance — an empirical examination , 2004 .

[52]  Xiaofeng Ju,et al.  Entrepreneurial orientation and performance: Is innovation speed a missing link? , 2016 .

[53]  Ekrem Tatoglu,et al.  An analysis of the relationship between TQM implementation and organisational performance: evidence from Turkish SMEs , 2006 .

[54]  Evangelos L. Psomas,et al.  The impact of innovation capability on the performance of manufacturing companies , 2015 .

[55]  Knut Blind,et al.  ISO 9001 and product innovation: A literature review and research framework , 2016 .

[56]  Mohamed Gamal Aboelmaged,et al.  Linking operations performance to knowledge management capability: the mediating role of innovation performance , 2014 .

[57]  Xiande Zhao,et al.  The impact of organizational context on hard and soft quality management and innovation performance , 2017 .

[58]  Paulo J. Gomes,et al.  The role of TQM in strategic product innovation: an empirical assessment , 2014 .

[59]  George A. Marcoulides,et al.  Product development practices and performance: A structural equation modeling-based multi-group analysis , 2006 .

[60]  Bart Bossink,et al.  The strategic function of quality in the management of innovation , 2002 .

[61]  Joaquín Gómez,et al.  EFQM Excellence Model and TQM: an empirical comparison , 2017 .

[62]  César Camisón,et al.  Organizational innovation as an enabler of technological innovation capabilities and firm performance , 2014 .

[63]  Ranjay Gulati,et al.  THE INSTITUTIONALIZATION OF TOTAL QUALITY MANAGEMENT: THE EMERGENCE OF NORMATIVE TQM ADOPTION AND THE CONSEQUENCES FOR ORGANIZATIONAL LEGITIMACY AND PERFORMANCE. , 1996 .

[64]  Stefanie Bröring,et al.  Drivers of innovation in Italy: food versus pharmaceutical industry , 2016 .

[65]  Ana B. Escrig-Tena,et al.  The impact of hard and soft quality management and proactive behaviour in determining innovation performance , 2018, International Journal of Production Economics.

[66]  Esther P. Y. Tang,et al.  Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries , 2011 .

[67]  J. Linton,et al.  Service regime: An empirical analysis of innovation patterns in service firms. , 2012 .

[68]  Mohamed Limam,et al.  Quality management practices and their impact on performance , 2006 .

[69]  Van Cang Nguyen,et al.  Research framework for the impact of total quality management on competitive advantage , 2017 .

[70]  Bella Ya-Hui Lien,et al.  Impact of TQM and organizational learning on innovation performance in the high-tech industry , 2011 .

[71]  E. Garnsey,et al.  Process-based vs. product-based innovation: Value creation by nanotech ventures , 2012 .

[72]  T. Laosirihongthong,et al.  The impact of total quality management on innovation , 2006 .

[73]  Kuen-Hung Tsai,et al.  Firm innovativeness and business performance: The joint moderating effects of market turbulence and competition. , 2013 .

[74]  A. Sohal,et al.  The impact of TQM practices on performance: a comparative study between Australian and Singaporean organizations , 2006 .

[75]  D. Third OECD/Eurostat . Oslo Manual-Guidelines for Collecting and Interpreting Technological Innovation Paris, France: , 2005 .

[76]  J. Li,et al.  The influence of leadership on product and process innovations in China: The contingent role of knowledge acquisition capability , 2015 .

[77]  María Leticia Santos-Vijande,et al.  Innovativeness and organizational innovation in total quality oriented firms: The moderating role of market turbulence , 2007 .