Understanding the Mechanism of Influence of TQM Practices on Financial Performance: the Mediating Effect of Innovation Performance

Kulenović Mirza, Veselinović Ljiljan (), Šunje Aziz and Cero Ermin
Additional contact information
Kulenović Mirza: Ph.D. student at School of Economics and Business University of Sarajevo and is now at USAID/BiH Activity MEASURE II
Veselinović Ljiljan: School of Economics and Business University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina, +387 33 253 766
Šunje Aziz: School of Economics and Business, University of Sarajevo
Cero Ermin: Faculty of Economics and Social Science,| International Burch University

Zagreb International Review of Economics and Business, 2022, vol. 25, issue 1, 149-176

Abstract: This study explores the mechanism of influence of total quality management (TQM) practices on a company’s financial performance (FP), considering innovation performance (IP) as a mediator variable. In addition, the proposed model seeks to determine whether the competition intensity (CI) moderates the relationship between TQM practices and FP. Based on the sample of 593 companies from various sectors in Bosnia and Herzegovina, structural equation modeling is used to analyze the relationships between the variables in the model. The results of this paper reveal the implicit and often omitted impact of IP on FP taking into account TQM practices, suggesting that the impact of TQM practices is manifested through full mediation of IP. The moderating effect of CI in the relationship between TQM practices and FP was not supported. The results indicate the role and the importance of IP in the mechanism of influence of TQM practices.

Keywords: total quality management; TQM; innovation performance; financial performance; full mediation effect (search for similar items in EconPapers)
JEL-codes: D22 L15 L25 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/zireb-2022-0010 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:zirebs:v:25:y:2022:i:1:p:149-176:n:1009

DOI: 10.2478/zireb-2022-0010

Access Statistics for this article

Zagreb International Review of Economics and Business is currently edited by Jurica Šimurina

More articles in Zagreb International Review of Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().