The Effect of Total Quality Management on Corporate Green Performance: Organizational Innovation as a Key Mediator in Automotive Companies
DOI:
https://doi.org/10.52909/jemeb.v3i2.196Keywords:
TQM, OI, CGP, Automotive industryAbstract
This study examines the effect of Total Quality Management (TQM) on Corporate Green Performance (CGP) in automotive companies, with organizational innovation as a mediator. The background of this study is based on the need for automotive companies to improve Corporate Green Performance amidst sustainability challenges. Although many previous studies have examined TQM and Corporate Green Performance separately, there is a lack of understanding the role of organizational innovation as a bridge between the two. The research method used is path analysis with primary data collected through questionnaires from managers and employees of automotive companies. The results show that TQM has a significant positive effect on Corporate Green Performance and organizational innovation. In addition, organizational innovation is proven to mediate the relationship between TQM and Corporate Green Performance. This conclusion confirms that good TQM implementation not only improves Corporate Green Performance directly, but also through increased innovation. The implications of this study suggest that automotive companies should integrate TQM and innovation in their sustainability strategies, as well as provide insights for stakeholders and policy makers to support environmentally friendly practices. This study enriches the literature on the relationship between TQM, innovation, and sustainability in the automotive sector.
References
Abbas, J. (2020). Impact of total quality management on corporate green performance through the mediating role of corporate social responsibility. Journal of Cleaner Production, 242, 118458.
Abdallah, A. B., & Al-Ghwayeen, W. S. (2020). Green supply chain management and business performance: The mediating roles of environmental and operational performances. Business Process Management Journal, 26(2), 489–512.
Abu Salim, T., Sundarakani, B., & Lasrado, F. (2019). The relationship between TQM practices and organisational innovation outcomes: Moderating and mediating the role of slack. The TQM Journal, 31(6), 874–907.
Ahmad, F., Saeed, Q., Shah, S. M. U., Gondal, M. A., & Mumtaz, S. (2022). Environmental sustainability: challenges and approaches. Natural Resources Conservation and Advances for Sustainability, 243–270.
Antunes, M. G., Mucharreira, P. R., Justino, M. R. T., & Texeira-Quirós, J. (2021). Effects of Total Quality Management (TQM) dimensions on innovation—evidence from SMEs. Sustainability, 13(18), 10095.
Chen, Y. S., Lai, S. B., & Wen, C. T. (2006). The influence of green innovation performance on corporate advantage in Taiwan. Journal of Business Ethics, 67(4), 331–339. https://doi.org/10.1007/s10551-006-9025-5
Dormer, A., Finn, D. P., Ward, P., & Cullen, J. (2013). Carbon footprint analysis in plastics manufacturing. Journal of Cleaner Production, 51, 133–141.
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11–32.
Giampieri, A., Ling-Chin, J., Ma, Z., Smallbone, A., & Roskilly, A. P. (2020). A review of the current automotive manufacturing practice from an energy perspective. Applied Energy, 261, 114074.
Hair, J. F., Sarstedt, M., & Ringle, C. M. (2019). Rethinking some of the rethinking of partial least squares. European Journal of Marketing, 53(4), 566–584.
Hamdan, Y., & Alheet, A. F. (2021). Toward sustainability: The role of TQM and corporate green performance in the manufacturing sector. International Journal of Entrepreneurship, 25(3), 1–15.
Khalil, M. K., & Muneenam, U. (2021). Total quality management practices and corporate green performance: does organizational culture matter? Sustainability, 13(19), 11021.
Morioka, S. N., Evans, S., & Carvalho, M. M. De. (2016). Sustainable Business Model Innovation: Exploring Evidences in Sustainability Reporting. Procedia CIRP, 40, 659–667. https://doi.org/10.1016/j.procir.2016.01.151
Pattanayak, D., Koilakuntla, M., & Punyatoya, P. (2017). Investigating the influence of TQM, service quality and market orientation on customer satisfaction and loyalty in the Indian banking sector. International Journal of Quality & Reliability Management.
Severo, E. A., Perin, M. M. S., De Guimarães, J. C. F., & Taufer, E. (2020). The relationship between sustainable innovation and product or service innovation: a survey in companies in Rio Grande do Sul. Revista de Gestao, 27(4), 319–334. https://doi.org/10.1108/REGE-05-2019-0058
Sezen, B., & Cankaya, S. Y. (2013). Effects of green manufacturing and eco-innovation on sustainability performance. Procedia-Social and Behavioral Sciences, 99, 154–163.
Sürücü, L., & Maslacy, A. (2020). Validity and reliability in quantitative research. Business & Management Studies: An International Journal, 8(3), 2694–2726.
Zairi, M. (2002). Beyond TQM implementation: the new paradigm of TQM sustainability. Total Quality Management, 13(8), 1161–1172.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Nadya Rizkita, Diana Rachmawati, Adelia Dwi Valentin
This work is licensed under a Creative Commons Attribution 4.0 International License.
