Moderated Mediation of Innovation Between Total Quality Management (TQM) and Business Performance

In this paper, the relationships among TQM practices, business performance, mediator variable of Innovation and moderator variable of ownership are examined. Despite attention is being paid to TOM practices, the determination on ownership as moderator among TQM, business performance and innovation has become another essential topic for practitioners and researchers. Therefore, the purpose of this paper is to identify the relationship between TOM practices, innovation, business performance and ownership. This paper investigate the effect of proposed moderator role of ownership namely locally-owned company and foreign-owned company; and innovation as mediator between the relationship of TQM and business performance. This proposed model attempt to determine the effect of moderated mediation between TOM practices and business performance. Hence, the firm can enhance TOM implementation effectiveness, and maintain a higher business performance. Consequently, the SEM-PLS (Structural Equation Modelling-Partial Least Squares Structural) is employed to evaluate the relationship among TQM, business performance with the effect of moderated mediation in establishing a new TQM model.