There are different definitions of innovation present in the literature. In general, innovation could be defined as the central idea of implementing or adapting a new idea in a company, Hage (1999). Innovation is defined as well as a new idea that turns into benefits, revenues and profits, Lafley & Charan (2008). TQM supports this effort in generating new ideas, collecting and implementing them. Also, Management are committed to innovate and to implement these new ideas, (Yusr (2016) , Perdomo-Ortiz et al. (2006), Santos-Vijande and Alvarez-Gonzalez (2007)).
- consist of creating ideas and properly putting them into action, and
- outcomes of these ideas.
Innovation is the method and tools by which an idea is generated and implemented, while results are the innovative products, services or processes, Crossan & Apaydin (2010). There are essential inputs for innovation outcomes; the ability of an organization to maintain an innovative idea and to put it into action, second the ability to choose valuable ideas between different ones, Skarzynski & Gibson (2008).
TQM and Innovation
In fact, Yusr et al. (2016) highlight that Leadership, customer focus, people management, and process management, training, tools, communications systems as part of TQM practices contribute to innovation activities. Perdomo-Ortiz et al. (2006) found in their study that TQM creates a favourable and fertile atmosphere or platform for developing innovation. Also, management commitment is critical to improving innovation capabilities, in fact under the TQM concept, the top management have to provide necessary requirements and skills that can help to achieve innovation. Management put employee training as a top priority to be able to update the company with latest technologies, Kaynak (2003).
Thus, many studies focus on the relationship between TQM and innovation such as: Hoang et al. (2006), Martinez Costa and Martinez Lorente (2008), Santos Vijande and Alvarez Gonzalez (2007), Sadikoglu and Zehir (2010), Leavengood and Anderson (2011). Hoang et al. (2006) lead a research on the relationship between TQM and innovation in manufacturing and services companies in socialist-oriented market economy (Vietnam). They found that TQM has a positive impact on innovation. Martinez-Costa and Martinez-Lorente (2008) as well found a positive relationship between TQM and innovation. Their research studied manufacturing and services companies in a developed country (Spain). They found that TQM has a positive impact on product and process innovations. Furthermore, they found that TQM and innovation culture share the same values. Santos-Vijande and Alvarez-Gonzalez (2007) research focus on Spanish firms. They explain that the implementation of TQM may influence the organization’s basic beliefs and values related to the innovation activities; TQM through its dimension of people management is actively involved in offering the employees a real role in the organization management, as well as in guaranteeing their satisfaction as they are internal customers of the entity itself, reason why their continuous formation and adaptation to the post they hold is taken care of, Santos-Vijande and Alvarez-Gonzalez (2007). They also find that the relation between TQM and technological innovation depends on firms’ culture. Moreover, they found also that this relationship depends as well on market conditions. Sadikoglu and Zehir (2010) conducted a study on a panel of ISO 9001:2000 certified companies in Turkey as a newly industrialized country. They find that employee performance plays a mediating role in the relationship between TQM and innovation. Sadikoglu and Zehir (2010) highlight that a manager’s positive attitude towards employees’ leads to higher employees’ performance.
Types of innovation
- Radical Innovation versus Incremental Innovation: Innovation is radical when it is special and unique when compared to existing innovation. For example, Amazon is the first to start selling books online offering a wide range of books. Moreover, the company offered an eBook reader device connected through satellite, it allows users to read ebooks even without internet connection. Incremental innovations on the other side consist of revision or modification of existing products, service or process Burgelman, et al., (2009). Incremental innovation improves and develops an existing product, service or process. The main objective of continual improvement is always to reach customer satisfaction. Example of incremental innovations: Audio and video messaging service, improvement of existing computers, means of transport.
- Technological and administrative innovation: Technological innovation consists of adopting advanced technologies in processes or products Damanpour, (1988). Technological innovation gives the company competitive advantage that turns into success Grover et al. (2007). However, managerial or administrative innovation consists of improving processes or systems Elenkov et al. (2005).
- Product Innovation versus Process Innovation: Product innovation consists of creating a new product based on another good or service, it is based on improving another product Burgelman, Wheelwright, & Christensen, (2009). However, Process innovations Consists on increasing the effectiveness and efficiencies of production Tarafdar & Gordon, (2007).
Thus, many studies focus on the relationship between TQM and innovation such as: Hoang et al. (2006), Martinez Costa and Martinez Lorente (2008), Santos Vijande and Alvarez Gonzalez (2007), Sadikoglu and Zehir (2010), Leavengood and Anderson (2011). Hoang et al. (2006) lead research on the relationship between TQM and innovation in manufacturing and services companies in the socialist-oriented market economy (Vietnam). They found that TQM has a positive impact on innovation. Martinez-Costa and Martinez-Lorente (2008) as well found a positive relationship between TQM and innovation. Their research studied manufacturing and services companies in a developed country (Spain). They found that TQM has a positive impact on product and process innovations. Furthermore, they found that TQM and innovation culture share the same values. Santos-Vijande and Alvarez-Gonzalez (2007) research focus on Spanish firms. They explain that the implementation of TQM may influence the organization’s basic beliefs and values related to the innovation activities; TQM through its dimension of people management is actively involved in offering the employees a real role in the organization management, as well as in guaranteeing their satisfaction as they are internal customers of the entity itself, reason why their continuous formation and adaptation to the post they hold is taken care of, Santos-Vijande and Alvarez-Gonzalez (2007). They also find that the relation between TQM and technological innovation depends on firms’ culture. Moreover, they found also that this relationship depends as well on market conditions. Sadikoglu and Zehir (2010) conducted a study on a panel of ISO 9001:2000 certified companies in Turkey as a newly industrialized country. They find that employee performance plays a mediating role in the relationship between TQM and innovation. Sadikoglu and Zehir (2010) highlight that a manager’s positive attitude towards employees’ leads to higher employees’ performance.
