The Mediating Role of Innovation in the Relationship Between TQM, Information Technology, and Operational Performance

The Case of SMEs in Makassar City, Indonesia

Abstract

The purpose of this paper is to the mediating role of innovation in the relationship between TQM, information technology, and operational performance: the case of SMEs in Makassar city, Indonesia. This paper used a quantitative research design. A total of 195 questionnaires were distributed to and collected from owners/managers of SMEs in Makassar, Indonesia to acquire requisite data for examining the hypothesized model of the study. Partial least squares structural equation modeling was used to analyze the research data. The results of the empirical study show that there is a positive and significant statistical impact of total quality management and information technology on operational performance. There was also a positive, direct and statistically significant effect of the information technology on total quality management. Meanwhile, Innovation plays a mediating role between TQM and operational performance.