Knowledge as a facilitator for enhancing innovation performance through total quality management

Many organisations are facing competitive challenges due to the rapid pace of technological change. Management theorists and practitioners alike have called for more creativity and innovation in product lines, management practices and production processes. However, total quality management (TQM) has long been a major management practice. Knowledge management (KM) initiatives have gained popularity in organisations recently. In addition, innovation has also received considerable attention as critical to securing sustainable competitive advantage in the marketplace. This study examined how KM initiatives, TQM and innovation performance are related. A survey of 223 managers from 1139 Taiwanese high-tech companies provided the empirical data needed. The study used structural equation modelling to analyse simultaneously the relationships between KM, TQM and innovation performance. Findings were that KM is positively associated with both TQM and innovation performance and that TQM is a mediator between KM and innovation performance. Keywords: knowledge managementtotal quality managementinnovation Acknowledgement The authors would like to thank the National Science Council of the Republic of China, Taiwan for financially supporting this research under Contract No. NSC 95-2416-H-464-001