ASSESSING THE IMPACT OF TOTAL QUALITY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN JORDANIAN SMALL AND MEDIUM INDUSTRIAL ENTERPRISES WITH INNOVATION AS A MEDIATOR

Abstract

the use of total quality management practices aims to improve the organization's efficiency and competitiveness. Implementing TQM practices is fraught with challenges, especially in developing countries. It is important to improve the efficiency of organizations and workers as well as the quality of production, improve operational effectiveness, provide high-quality products, and improve overall performance, which are the goals of implementing Total Quality Management (TQM) practices. On the other hand, companies face constant challenges, such as the rapid rate of technological innovation, competition for superior product quality, pricing, and service quality, and consumer expectations are always changing, so it is important and required to apply total quality management practices. In order to maximize the benefits of innovative solutions that improve organizational performance, the company’s long-term continuity and success, and its competitiveness locally and globally. The role of innovation has become an absolute necessity that requires the application of these practices. This research examines the role that innovation plays as a mediator in the relationship between organizational performance and total quality management practices in the context of small and medium industrial enterprises in Jordan. The study focuses specifically on industrial enterprises (SMEs) in Jordan. At the same time, the aim of this study was to provide insight into ways to enhance the organizational performance of the industrial sector in Jordan. In addition, the research aims to verify and test this model by collecting secondary data from owners, engineers, and technicians of Jordanian industrial companies. This will be done by applying structural equation modeling (SEM) to test hypotheses and determine the role that innovation plays as a mediating factor between TQM practices and organizational performance.  The purpose of this study is to develop and propose a conceptual framework and research model for TQM practices and organizational performance. It is necessary to conduct a comprehensive analysis of the literature on organizational performance, innovation, and TQM. In addition, by studying the function of innovation as a mediator, we can strengthen this connection. The results show that there is a beneficial mediation effect of innovation between organizational performance and TQM practices. Furthermore, TQM practices have a positive impact on the mediator's role, and the mediator has a positive impact on organizational performance. These results highlight how important it is to support fresh approaches to maximize the advantages of putting TQM practices into practice and innovation's contribution to the organization's overall performance improvement.

Keywords — Total Quality Management, TQM Practices, Innovation, Organizational Performance, Industrial SMEs, Mediating Role, Jordan.