The Impact of Tqm on Innovation
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IJQRM 23,9
The impact of total quality management on innovation
Findings from a developing country
Dinh Thai Hoang and Barbara Igel
School of Management, Asian Institute of Technology, Klong Luang, Pathumthani, Thailand, and
1092
Received February 2005 Revised August 2005
Tritos Laosirihongthong
Industrial Engineering Department, Faculty of Engineering, Thammasat University, Klong Luang, Pathumthani, Thailand
Abstract
Purpose – The purpose of this paper is to investigate the relationship between total quality management (TQM) practices and innovation performance in the Vietnamese industry context. Design/methodology/approach – The method of confirmatory factor analysis was applied to refine TQM and innovation scales for empirical analysis in Vietnam. The structural equation modelling method was applied to test the theoretical models. Findings – This study confirms the results of previous studies that considered TQM as a set of practices. It confirms that TQM – considered as a set of practices – has a positive impact on the firm’s innovativeness. It discovers that not all TQM practices enhance firm innovativeness. Only leadership and people management, process and strategic management, and open organization showed a positive impact on the firm’s innovation performance. Research limitations/implications – The sample was not random. Future research should select different random samples to allow for more generalization of the results. The study assessed the concept of “newness” with the company boundaries. Future research should measure “newness” within the boundaries of the specific industry. The unclear evidence found in this study on the impact of the firm’s education and training policy on innovation needs to be further investigated. Practical implications – The findings are useful for business managers in developing countries such as Vietnam, who
IJQRM 23,9
The impact of total quality management on innovation
Findings from a developing country
Dinh Thai Hoang and Barbara Igel
School of Management, Asian Institute of Technology, Klong Luang, Pathumthani, Thailand, and
1092
Received February 2005 Revised August 2005
Tritos Laosirihongthong
Industrial Engineering Department, Faculty of Engineering, Thammasat University, Klong Luang, Pathumthani, Thailand
Abstract
Purpose – The purpose of this paper is to investigate the relationship between total quality management (TQM) practices and innovation performance in the Vietnamese industry context. Design/methodology/approach – The method of confirmatory factor analysis was applied to refine TQM and innovation scales for empirical analysis in Vietnam. The structural equation modelling method was applied to test the theoretical models. Findings – This study confirms the results of previous studies that considered TQM as a set of practices. It confirms that TQM – considered as a set of practices – has a positive impact on the firm’s innovativeness. It discovers that not all TQM practices enhance firm innovativeness. Only leadership and people management, process and strategic management, and open organization showed a positive impact on the firm’s innovation performance. Research limitations/implications – The sample was not random. Future research should select different random samples to allow for more generalization of the results. The study assessed the concept of “newness” with the company boundaries. Future research should measure “newness” within the boundaries of the specific industry. The unclear evidence found in this study on the impact of the firm’s education and training policy on innovation needs to be further investigated. Practical implications – The findings are useful for business managers in developing countries such as Vietnam, who