The Influence of TQM Practices on Organizational Performance in Jordanian Industrial SMEs: Exploring the Mediating role of Innovation

Abstract

This study emphasizes the value of innovation in improving performance by examining the relationship between organizational performance, innovation, and Total Quality Management (TQM) in Jordanian industrial small and medium enterprises (SMEs). We selected the 381 prospective respondents, including managers, engineers, and technicians who make decisions, from the sampling framework using the standard random sampling technique. The study provided the self-managed questionnaires to the selected respondents, who replied within the allotted period. We obtained 344 valid answers after a few weeks. This study used the Covariance-Based Structural Equation Modeling (CB-SEM) method, as the model under examination was derived from established theories from previous studies. The study utilized IBM-SPSS-AMOS 25.0 to construct and assess hypotheses. Additionally, we examined the fitness, reliability, and validity of the constructs using confirmatory factor analysis (CFA). The findings suggest that all constructs demonstrated excellent fit, reliability, and validity, supporting their suitability for further analysis. The results showed that total quality management practices have a statistically significant effect on both the mediating role (innovation) and the performance of the organization when the mediator is present. The results showed that the mediating role (innovation) has a statistically significant impact on organizational performance in institutions. The impact of total quality management methods on organizational performance was not statistically significant.