Are quality management practices enough to improve process innovation?

Abstract

The popularity of quality management as a system for continuous improvement has not been accompanied by deep theoretical understanding of its effects on process innovation. In this work, the resource-based view serves as the basis for the construction of a model designed to explain the effects of quality management practices (QMP) on process innovation performance and the mediating role of dynamic capabilities in this relationship. The empirical data were analysed using the structural equation modelling technique by examining 6 competing models that represent full, partial mediation and non-mediation relationships on a sample of 550 Spanish industrial companies. The findings indicate that the implementation level of QMP is not directly related to process innovation performance, but learning and technological capabilities fully mediate this relationship. Therefore, QMP needs to enhance and develop dynamic capabilities to effectively achieve the improvement and transformation of a firm’s processes.