Though total quality management (TQM) has been practiced for more than 20 years in the Western world, its value has not diminished over time. Unlike other management fads, many successful companies still regard TQM as one of the few top proven successful management methods. New quality management program like six sigma quality management emerges, but basically it is putting on new cloth to TQM. Notwithstanding its strategic value, many TQM practicing companies are having difficulties in bringing out new products successfully into the market. Their focus is restricted to process improvement to assure timely better quality products and cost reduction to stay competitive. Managers in these companies are frustrated by their quality culture that is hindering them to pursue more innovative product development. Empirical results of previous research studies have not provided an answer to overcome such practical difficulty to make a transition from quality-oriented to innovation-oriented organisation. Apart from the conflicting research results that confuse management practitioners, these previous research studies did not explore the underlying factors that drive TQM and innovation cultures in a coherent manner. In this study, we will use empirical evidence to identify and model these underlying factors. The objective is to formulate a framework so that management practitioners can make use of the research results to improve their TQM and innovation cultures in such a way that financial performance in new product development can be maximised. The empirical test confirmed that the four critical success factors that determine NPD performance can also determine TQM performance with high precision. Companies which have implemented TQM previously can make a faster and better transition to become more innovative. For those companies that did not introduce TQM into their operations, our empirical evidence will provide suggestion as to whether and how they can incorporate some TQM so as to maximise the impact of the introduction of innovation culture into their organisation.
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