Daniel I. Prajogo

The relationship between TQM practices, quality performance, and innovation performance: An empirical examination

This empirical study examines the relationship between total quality management (TQM) and innovation performance and compares the nature of this relationship against quality performance. The empirical data were obtained from a survey of 194 managers in Australian industry encompassing both manufacturing and non‐manufacturing sectors. The structural equation modeling technique was used to examine the relationships between TQM and quality performance as well as innovation performance, simultaneously. The findings suggest that TQM significantly and positively relates to both product quality and product innovation performance although it appears that the magnitude of the relationship is greater against product quality. In addition, significant causal relationships between quality performance and innovation performance were found, suggesting that achievement of one aspect of performance could impact the other.

Relationships between Innovation Stimulus, Innovation Capacity, and Innovation Performance

This paper examines the integration of the human and technological aspects of innovation management by modelling the innovation stimulus – innovation capacity relationship in determining innovation performance. The research framework developed in this study was tested amongst 194 managers of Australian firms. The survey responses indicate that both the relationships between innovation stimulus and innovation capacity and between innovation capacity and innovation performance are significant and strong. However, innovation stimulus does not show any direct effect on innovation performance, suggesting that its effect is mediated through innovation capacity. The overall practical implication that can be drawn from the findings is that to achieve high innovation performance, organizations first need to develop the behavioural and cultural context and practices for innovation (i.e. stimulus), and only within such conducive environments is it possible for organizations to develop innovative capacity in research and development and technology so as to more effectively deliver innovation outcomes and performance.

TQM and innovation: a literature review and research framework

Abstract This paper discusses the relationship between the implementation of Total Quality Management (TQM) and innovation performance. The discussion arises primarily based on the considerable controversy concerning this relationship that appears in the literature. As of interest to resolve this controversy, a research framework is developed preceded by a theoretical discussion of the multidimensionality of TQM when applied in different organizational contexts. The primary proposition of this framework is that the implementation of TQM practices will be influenced by the external and internal environment as well as the strategy adopted by the firm. The model of TQM implemented is then reflected in terms of different outcomes relating to quality performance and innovation performance.

The relationship between organization strategy, total quality management (TQM), and organization performance––the mediating role of TQM

The study presented in this paper examines the fit of total quality management (TQM) practices in mediating the relationship between organization strategy and organization performance. By examining TQM in relation to organization strategy, the study seeks to advance the understanding of TQM in a broader context. It also resolves some controversies that appear in the literature concerning the relationship between TQM and differentiation and cost leadership strategies as well as quality and innovation performance. The empirical data for this study was drawn from a survey of 194 middle/senior managers from Australian firms. The analysis was conducted using structural equation modeling (SEM) technique by examining two competing models that represent full and partial mediation. The findings indicate that TQM is positively and significantly related to differentiation strategy, and it only partially mediates the relationship between differentiation strategy and three performance measures (product quality, product innovation, and process innovation). The implication is that TQM needs to be complemented by other resources to more effectively realize the strategy in achieving a high level of performance, particularly innovation.

The multidimensionality of TQM practices in determining quality and innovation performance — an empirical examination

Abstract This paper examines the multidimensionality of TQM in association with organizational performance. The primary proposition examined in this study is that TQM embodies two different models of practices, mechanistic and organic, with each showing a different role in the association with two different types of performance, quality and innovation. Using empirical data gathered from 194 middle/senior managers in Australian firms, the findings support the proposition in pairing the mechanistic elements of TQM with quality performance and the organic elements with innovation performance. Further results, however, fail to support the proposition that organizations need to configure TQM practices in different ways for achieving different type of performance.

The comparative analysis of TQM practices and quality performance between manufacturing and service firms

Purpose – This paper seeks to examine the difference between manufacturing and service firms with respect to the implementation of total quality management (TQM) practices, and the relationship of these practices to quality performance.Design/methodology/approach – The empirical data were collected from 194 managers of Australian firms with an approximately equal proportion of manufacturing and service firms.Findings – The finding indicates no significant difference in the level of most of TQM practices and quality performance between the two sectors. This supports the positive argument concerning the applicability of TQM practices in the service firms despite several differences in the nature of their operations compared to their manufacturing counterparts. Furthermore, using structural equation modelling (SEM) technique, this study has shown that TQM construct based on the Malcolm Baldrige National Quality Award (MBNQA) criteria is valid across both industry sectors, and its relationship with quality pe...

The relationship between multidimensional organizational culture and performance

Purpose – This paper aims to examine the relationship between the four cultural dimensions of the competing values framework (CVF) (group, developmental, hierarchical, and rational cultures) and four types of performance: product quality, process quality, product innovation, and process innovation. Theoretically, this represents the contrasts among the four quadrants of CVF in terms of their respective outcomes, with quality and innovation reflecting the contrast between control and flexibility orientations, and product and process reflecting the contrast between external and internal orientations.Design/methodology/approach – Data were collected from 194 middle and senior managers of Australian firms who had knowledge of past and present organizational practices relating to quality and innovation‐related aspects in the organization.Findings – Developmental culture was found to be the strongest predictor among the four cultural dimensions, as it shows relationships with three of the performance measures: ...

The relationship between competitive strategies and product quality

Purpose – The purpose of this paper is to examine the underlying strategic intent of quality performance. Specifically, the study aimed to examine the individual impact of differentiation and cost leadership as well as their interaction effect on quality performance.Design/methodology/approach – This study employed a data set drawn from 102 managers of Australian manufacturing firms. Multiple regression analysis with moderating effect was used for analysing the relationship between the competitive strategies and quality performance.Findings – The findings indicated that product quality was predicted by differentiation strategy, but not cost leadership strategy. However, the effect of differentiation on quality was moderated by cost leadership whereby the higher the cost leadership, the stronger the effect.Research limitations/implications – The small sample size which was dominated by small‐to‐medium sized firms (SMEs) was the major limitation of the study. The sample size and distribution also inhibited ...

Internalisation of ISO 9000 standards: The antecedent role of functionalist and institutionalist drivers and performance implications

This study presents an investigation of the relationship between motivation for ISO 9000 certification and internalisation of practices underlying ISO 9000 standards. We use the theoretical lenses of resource-based view and institutional theory to develop our research hypotheses linking motivation with internalisation of ISO 9000 standards. These theories also provide a cogent means to understand the findings from the study. Further, the study presents the performance implications of internationalisation of ISO 9000 standards. A path model is developed that link motivation, internalisation of ISO 9000 standards and performance. Survey data from 281 ISO 9001 certified manufacturing and service organisations in Australia is used to test the research hypotheses of the study. The results suggest that internalisation of practices underlying ISO 9000 standards is affected by functionalist and institutionalist drivers. We find that internalisation of ISO 9000 standards is positively associated with operational performance, and operational performance, in turn, is positively associated with business performance. A closer examination by splitting the sample between high and low performing firms reveals that internalisation of ISO 9000 standards is associated with both functionalist and institutionalist motives in low performing firms, whereas only functionalist driver influence the internalisation of ISO 9000 standards in high performing firms. We offer theoretical and managerial implications of our findings. †Both authors contributed equally to the paper.

Supply chain operational risk mitigation: a collaborative approach

Along with increasing supply chain risks due to economic and environmental changes, it is imperative to answer the question of how to reduce supply chain risks. This study examines supply chain collaboration as a risk mitigation strategy. The study examines three types of risks, namely supply risk, demand risk and process risk in relation to three types of collaboration, namely supplier collaboration, customer collaboration and internal collaboration, as a mechanism to mitigate those risks. The proposed relationship model is tested with data collected from 203 manufacturing companies in Australia. The results show that each area of collaboration effectively reduces its respective supply chain risk, but only the mitigation of process risk and demand risk has a direct effect on supply chain performance. In addition, both supply risk and demand risk increase process risk. We offer theoretical and practical implications of the findings.