The Mediating Role of Innovation in the Relationship between TQM Practices and Organizational Performance in Industrial SMEs in Jordan

Within the arena of industrial Small and Medium-sized Enterprises (SMEs) in Jordan, this study analyzes the mediating function of innovation in the intricate relationship between total quality management (TQM) practices and organizational performance. Specifically, the research focuses on Jordanian SMEs in the manufacturing sector. The methods of Total Quality Management (TQM) have been recognized as a strategic strategy to enhance the efficiency and competitiveness of organizations. This study investigates whether or not innovation plays an important role as a vital mediator that channels the positive influence that TQM techniques have on enhanced organizational performance. The study reveals the extent to which innovation serves as a mediator of this relationship by conducting an extensive survey of small and medium-sized industrial businesses in Jordan. The findings indicate that innovation does play a mediating function, which sheds light on the significance of encouraging new activities to optimize the benefits of TQM implementation. Purpose: This study explores the relationships between TQM Practices, innovation, and organizational performance in Jordan's SMEs. It aims to understand the mechanisms influencing these components and the mediating function of innovation in the relationship between TQM practices and organizational performance. Methodology: The current study is an attempt to analyze the mediating role of innovation in the impact of the relationship between total quality management (TQM) practices and organizational performance on the industrial sector of small and medium enterprises (SMEs) in Jordan. This study is quantitative in nature. A quantitative analysis approach was used. The survey was tested by nine academic and administrative experts and three practitioners in the Jordanian industrial sector using a self-administered questionnaire. There are about 45,910 employees and 6,098 businesses among the population under study. Where the unit of analysis is the owner (managers) and engineers in the Jordanian small and medium industrial companies, the target population of the study are the owner (managers) and engineers in The Engineering, Electrical, and Information Technology Industry. Stratified random sampling technique was used to select a sample of 381 respondents from the population. Respondents were given a self-administered questionnaire to respond at their convenience, A total of 344 usable responses were received, Data were analyzed using structural equation modeling (SEM) in IBM-SPSS-AMOS 25.0 software. Result: The study shows that innovation is closely related to organizational performance. The relationship between total quality management practices and organizational performance is also important. Innovation provides a complete mediation of the relationship between TQM practices and organizational performance. Applications: The findings of this study may be helpful to people working in the field of research and academia as well as owners, managers, supervisors, and engineers in the industrial sector in Jordan. The findings of the research are helpful in that they suggest that innovation plays a very significant role as a mediator between total quality management and organizational performance. This is one of the ways in which the findings are valuable. Identifying other factors that influence organizational performance in Jordan's industrial SMEs will be one of the most significant contributions that may be made to the existing body of research in the not-too-distant future. Novelty and originality: At the present time, the research on the mediating function of innovation in the relationship between TQM practices and organizational performance is being considered for researchers, academics, owners, managers, supervisors, and engineers working in the manufacturing sector in Jordan. It is critical for Jordan's small and medium industrial enterprises to have strong organizational performance in order to maximize their chances of long-term survival and success in the global marketplace.