The Effect of Total Quality Management on Innovation Performance with Mediator Role of Organizational Learning: (Case Study: ABBAND Mazandaran)

The Effect of Total Quality Management on Innovation Performance with Mediator Role of Organizational Learning: (Case Study: ABBAND Mazandaran)

Mohsen Shafiei Nikabadi (Industrial Management Department, Semnan University, Semnan, Iran), Seyed Ahmad Mohammadi Hoseini (Educational Administration Department, Semnan University, Semnan, Iran) and Saeed Zangouri (Business Management Department, Semnan University, Semnan, Iran)
Copyright: © 2014 |Pages: 16
DOI: 10.4018/ijkbo.2014100104
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Abstract

The main objective of this study was to evaluate the effect of Total Quality Management (TQM) on innovation performance with the mediator role of organizational learning in ABBAND Mazandaran manufacturing and industrial Company. The research design was descriptive and correlation and specifically is based on structural equation model. The study population was all supervisors and employees of ABBAND Mazandaran manufacturing and industrial Company. For measuring variables of research, three questionnaires were used based on the Likert 5 options range and the questionnaires were distributed among 220 supervisors and employees of ABBAND Mazandaran Company. Content validity of the three questionnaires was carried out by a number of experts and management professionals and the reliability of TQM, Learning Organization and innovation performance questionnaires was determined by Cronbach's alpha coefficient as 0.96, 0.82, and 0.94, respectively. The results showed that there is a causal relationship between TQM, learning organization and innovation performance. Also, organizational learning mediates the effect of TQM on innovation performance.
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1. Introduction

Many researchers have shown that the strategy of TQM is an extremely powerful tool for the development of organizational learning and it increases the competitive profit (Hendricks & Singhal, 2001; Martinez-Costa & Jimenez-Jimenez, 2008). Today’s competitive market needs innovative technological improvements and the short life cycle of products constantly challenges the competitive profit (Prajogo & Sohal, 2003). According to researchers, learning ability can stimulate organizational innovation and preserve the competitive profit in today’s turbulent environment. Learning reinforces innovative activities and quality is one of the main characteristics of success in today’s competitive environment. As a result, organizations can sustain in today’s competitive environment by the continuous production of goods and the continuous management of their quality (Martinez-Costa & Jimenez-Jimenez, 2009). Therefore, quality and learning are effective factors that guarantee the success and improvement of each and every industrial and service system. Also the comprehensive nature of both factors shows the necessity to manage them properly (Nadi & Damady, 2009). In the current era, massive changes are forming that direct service systems toward further engineering (Wong & Chin, 2006). According to Salaman & Bulter, for an appropriate change, organizations should be capable of analyzing themselves and their processes, structure, and environment. They should also be able to recognize practical and effective solutions and to represent them, which mean organizations should be capable of learning. Without such an analytical capability, organizations cannot make a right choice regarding the structure, process, culture, and product and they will fail (Nadi & Damady, 2009). Therefore, effective and proper management can provoke an organization to be more flexible, innovative, and intelligent. By considering the aforementioned matters, the main questions of the current study are: whether total quality can affect innovation performance and whether organizational learning plays a mediatory role regarding the TQM and innovation performance. In order to answer these questions, ABBAND Mazandaran manufacturing and industrial company was chosen and investigated since no study has been carried out so far.

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