<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study explores the mechanism of influence of total quality management (TQM) practices on a company’s financial performance (FP), considering innovation performance (IP) as a mediator variable. In addition, the proposed model seeks to determine whether the competition intensity (CI) moderates the relationship between TQM practices and FP. Based on the sample of 593 companies from various sectors in Bosnia and Herzegovina, structural equation modeling is used to analyze the relationships between the variables in the model. The results of this paper reveal the implicit and often omitted impact of IP on FP taking into account TQM practices, suggesting that the impact of TQM practices is manifested through full mediation of IP. The moderating effect of CI in the relationship between TQM practices and FP was not supported. The results indicate the role and the importance of IP in the mechanism of influence of TQM practices.</p>
</abstract>

This study explores the mechanism of influence of total quality management (TQM) practices on a company’s financial performance (FP), considering innovation performance (IP) as a mediator variable. In addition, the proposed model seeks to determine whether the competition intensity (CI) moderates the relationship between TQM practices and FP. Based on the sample of 593 companies from various sectors in Bosnia and Herzegovina, structural equation modeling is used to analyze the relationships between the variables in the model. The results of this paper reveal the implicit and often omitted impact of IP on FP taking into account TQM practices, suggesting that the impact of TQM practices is manifested through full mediation of IP. The moderating effect of CI in the relationship between TQM practices and FP was not supported. The results indicate the role and the importance of IP in the mechanism of influence of TQM practices.

Understanding the Mechanism of Influence of TQM Practices on Financial Performance: the Mediating Effect of Innovation Performance

Ph.D. student at School of Economics and Business University of Sarajevo and is now at USAID/BiH Activity MEASURE II

School of Economics and Business University of Sarajevo

Faculty of Economics and Social Science,| International Burch University

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This study explores the mechanism of influence of total quality management (TQM) practices on a company’s financial performance (FP), considering innovation...

Understanding the Mechanism of Influence of TQM Practices on Financial Performance: the Mediating Effect of Innovation Performance

Data publikacji: 14 cze 2022

Zakres stron: 149 - 176

DOI: https://doi.org/10.2478/zireb-2022-0010

Słowa kluczowe
total quality management, TQM, innovation performance, financial performance, full mediation effect

© 2022 Mirza Kulenović et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Understanding the Mechanism of Influence of TQM Practices on Financial Performance: the Mediating Effect of Innovation Performance

Data publikacji: 14 cze 2022

Zakres stron: 149 - 176

DOI: https://doi.org/10.2478/zireb-2022-0010

Słowa kluczowetotal quality management, TQM, innovation performance, financial performance, full mediation effect

© 2022 Mirza Kulenović et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Słowa kluczowe
total quality management, TQM, innovation performance, financial performance, full mediation effect