Mediating effects of organisational learning on the relationship between TQM, innovation and business performance: evidence from manufacturing SMEs in Nigeria

Kabir Musa Shuaib and Zhen He

International Journal of Business Performance Management, 2024, vol. 25, issue 1, 94-127

Abstract: Total quality management (TQM) and innovation are complementary concepts that drive organisational success. Similarly, based on previous studies' findings, TQM and innovation are predictors of firm performance. However, past studies reveal this tripartite relationship with mixed results. The current study predicts organisational learning mediating effect in the relationship between TQM, innovation and firm performance. The study collected empirical data from 385 manufacturing SMEs in Kano and Kaduna states in Nigeria. A partial least square (PLS) model was used to test the conceptual model to determine the examined relationship between TQM, innovation and firm performance with mediating effect of organisational learning. The results reveal that TQM practices do not directly affect business performance but indirectly through organisational learning. The study finds that innovation has a significant and positive effect on performance. Similarly, organisational learning mediates the relationship between innovation and business performance. The study's findings and contributions provide insights and critical practical implications for manufacturing SMEs and their managers. Practically, managers and practitioners may get some insights to include organisational learning with other strategies and organisational practices.

Keywords: business performance; innovation; organisational learning; SMEs; total quality management; TQM; Nigeria. (search for similar items in EconPapers)
Date: 2024
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