International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
This study examines the relationship between Total Quality Management (TQM) and innovation capability affecting organizational performance. The empirical data were obtained from a survey of 437 automobile and autoparts industries and 462 electrical and electronic industries. Structural equation model is used to analyze structural between measured variable and latent constructs. The findings suggest that TQM and innovation capability have positive influence on organizational performance. The analysis of structural equation model and TQM, innovation capability and organizational performance gave consistent result with empirical information. The results from this research show that TQM have positive effects to the innovation capabilities and organizational performance. The result was shown that the criteria related with people management and supplier quality management have a stronger correlation with the performance. According organization should give the necessary quality-related training and rewarded for superior quality improvement. The leader should maintain close communication with suppliers about quality considerations and design changes.
How to cite this article:
Sarinya Sirisan and Nalin Pianthong. A Structure Equation Model of Total Quality Management and Innovation Capability
Affecting Organization Performance.
DOI: https://doi.org/10.36478/ibm.2019.612.619
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2019.612.619