The impact of hard and soft quality management on quality and innovation performance: An empirical study

This study examines the conflicting relationship between quality management (QM) and innovation on a global basis using a multidimensional view of QM. QM is divided into two dimensions: hard QM and soft QM. Quality performance as an intended consequence of QM implementation is also examined as a potential mediator between QM and innovation. A conceptual framework is developed to postulate causal linkages between soft/hard QM, quality performance, and innovation performance. Data collected from 283 plants in eight countries and a technique of structural equation modeling are used to test this framework. The results indicate different paths to innovation from different dimensions of QM. Hard QM affects innovation performance directly and indirectly through its effect on quality performance. Soft QM has indirect effect on innovation performance through its effect on hard QM. This means that quality performance depends directly on hard QM which can be promoted by soft QM. Quality performance shows a partial mediating effect on the relationship between hard QM and innovation performance. Quality and innovation are not a matter of trade-off, but they can coexist in a cumulative improvement model with quality as a foundation. Firms have no need to abandon QM endeavor to achieve innovation. Instead, they should devote continuous efforts to maintain a solid quality system in place integrating a set of QM practices and corresponding performance measures. Managers are advised to emphasize on quality control tools and techniques and use teamwork, training, employee empowerment and problem-solving approaches as an underlying support.