The Role of Green Innovation Capabilities on The Relationship Between Total Quality Management And Sustainability Performance of Small And Medium Manufacturing Industry In Surabaya
DOI:
https://doi.org/10.24256/kharaj.v8i1.9660Keywords:
Total Quality Management (TQM), Corporate Sustainability Performance, Green Innovation CapabilityAbstract
This study aims to analyze the structural relationship between Total Quality Management (TQM) and corporate sustainability performance, with green innovation capabilities as a mediating variable, in the manufacturing industry of Small and Medium Enterprises (SMEs) in Surabaya. This study emphasizes the importance of TQM implementation and green innovation capabilities in driving organizational sustainability practices. The research method uses Structural Equation Modeling–Partial Least Squares (SEM-PLS). TQM is measured across four dimensions: product control management, process control management, vendor quality management, and customer relationship improvement. Corporate sustainability performance is measured through three dimensions, namely environmental, economic, and social sustainability, while green innovation capabilities are measured through green product innovation and green process innovation. The results show that TQM practices directly influence corporate sustainability performance across all dimensions and act as an antecedent of green innovation capabilities. Furthermore, green innovation capabilities are shown to mediate the relationship between TQM practices and corporate sustainability performance at both the construct and dimension levels. These findings indicate that TQM can be a holistic approach in improving the sustainability of small and medium industrial companies and building an innovative culture that encourages the creation of a circular social economy.
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, Vol. 242, 118458, doi: 10.1016/j.jclepro.2019.118458.
Abbas, J. (2020), “Impact of total quality management on corporate sustainability through the mediating effect of knowledge management”, Journal of Cleaner Production, Vol. 244, 118806.
Abbas, J. and Sagsan, M. (2019), “Impact of knowledge management practices on green innovation and corporate sustainable development: a structural analysis”, Journal of Cleaner Production, Vol. 229, pp. 611-620.
Abrunhosa, Ana, and Patrícia Moura E. Sá. "Are TQM principles supporting innovation in the Portuguese footwear industry?." Technovation 28.4 (2008): 208-221.
Alawag, A.M., Alaloul, W.S., Liew, M.S., Musarat, M.A. and Baarimah, A.O. (2023), “Implementation of total quality management (TQM) in Malaysian industrialized building system (IBS) projects”, Revista de la construcci on, Vol. 22 No. 1, pp. 74-86, doi: 10.7764/rdlc.22.1.74.
Albloushi, Badreya, et al. "Total quality management practices and corporate sustainable development in manufacturing companies: the mediating role of green innovation." Management Research Review 46.1 (2023): 20-45.
Ali, K., Johl, S.K., Muneer, A., Alwadain, A. and Ali, R.F. (2022), “Soft and hard total quality management practices promote industry 4.0 readiness: a SEM-Neural network approach”, Sustainability, Vol. 14 No. 19, 11917, doi: 10.3390/su141911917.
Bao, G., Zhang, W., Xiao, Z. and Hine, D. (2020), “Slack resources and growth performance: the mediating roles of product and process innovation capabilities”, Asian Journal of Technology Innovation, Vol. 28 No. 1, pp. 60-76.
Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120, doi: 10.1177/014920639101700108.
Ben Salem, A. (2022), “Entrepreneurial coaching mediating relationship between TQM soft practices and firm performance: cases of certified Tunisian companies”, The TQM Journal, Vol. 35 No. 8, pp. 2322-2335, doi: 10.1108/tqm-08-2022-0271.
Chin, W.W. (1998). The partial least squares approach for structural equation modelling, dalam Marcoulides, G.A. (Ed.), Modern Methods for Business Research, Lawrence Erlbaum, Mahwah, NJ, 295-336.
Cooper, Donald R., and Pamela Schindler. Business research methods. Mcgraw-hill, 2015.
Dahlgaard, J.J., Reyes, L., Chen, C.K. and Dahlgaard-Park, S.M. (2019), “Evolution and future of total quality management: management control and organisational learning”, Total Quality Management and Business Excellence, Vol. 30 No. sup1, pp. 1-16, doi: 10.1080/ 14783363.2019.1665776.
Dayuan, et al. "Impact of quality management on green innovation." Journal of cleaner production 170 (2018): 462-470.
EPA, U. (2003), “Lean manufacturing and the environment: research on advanced manufacturing systems and the environment and recommendations for leveraging better environmental performance”, United States Environmental Protection Agency.
Ershadi, M.J., Najafi, N. and Soleimani, P. (2019), “Measuring the impact of soft and hard total quality management factors on customer behavior based on the role of innovation and continuous improvement”, The TQM Journal, Vol. 31 No. 6, pp. 1093-1115, doi: 10.1108/TQM-11-2018-0182.
Farouk, S. and Jabeen, F. (2018), “Ethical climate, corporate social responsibility and organizational performance: evidence from the UAE public sector”, Social Responsibility Journal, Vol. 14 No. 4, pp. 737-752.
Fernando, Y., Jabbour, C.J.C. and Wah, W.X. (2019), “Pursuing green growth in technology firms through the connections between environmental innovation and sustainable business performance: does service capability matter?”, Resources, Conservation and Recycling, Vol. 141, pp. 8-20.
Guo, J., Chen, M., Sun, X., Wang, Z. and Xue, J. (2020), “Leveraging industrial-technological innovation to achieve sustainable development: a systems thinking perspective”, Plos One, Vol. 15 No. 12,p. 242-281.
Gürlek, M. and Çemberci, M. (2020), “Understanding the relationships among knowledge- oriented leadership, knowledge management capacity, innovation performance and organizational performance: a serial mediation analysis”, Kybernetes, Vol. 49 No. 11,
pp. 2819-2846.
Hair, J., Hollingsworth, C.L., Randolph, A.B. and Chong, A.Y.L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management and Data Systems, 117 (3), 442-458.
Hart, S.L. (1995), “A natural-resource-based view of the firm”, Academy of Management Review, Vol. 20 No. 4, pp. 986-1014, doi: 10.2307/258963.
Zhang, D., Rong, Z. and Ji, Q. (2019), “Green innovation and firm performance: evidence from listed companiesin China”, Resources, Conservation and Recycling, Vol. 144,pp. 48-55.
Zhang, W., Zhang, M., Zhang, W., Zhou, Q. and Zhang, X. (2020), “What influences the effectiveness of green logistics policies? A grounded theory analysis”, Science of the Total Environment, Vol. 714, 136731.
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Djojo Diharjo, Risa Watti, Nurul Azizah
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
