This academic work delves into how quality management practices (QMP) in supply chains augment firm performance through knowledge sharing behaviour (KSB) and quality management capacity (QMC). The data was garnered from 276 small and medium-sized enterprises (SMEs) operating in high-pollution industries, including paper, fashion, and food manufacturing, across the USA. Draw on structural equation modelling, QMP was disclosed to significantly amends innovative performance (through KSB and QMC) and operational performance (through KSB). Nevertheless, the path conjoining QMP to operational performance via QMC was statistically inconsequential, exposing QMC's stronger function in driving innovations over routine operations. The outcomes deliver empirical evidence for SMEs in polluting sectors to deliberately allocate resources: KSB advances the entire performance elements, while QMC investments generate greater returns for innovations. These novel comprehensions help manufacturers balance operational efficiency with sustainability-driven innovations.
Koswara et al. (Thu,) studied this question.