The moderating role of environmental dynamism in the impact of total quality management applications on innovation and company performance

As a result of the increase in globalization, the world has become a small village for commercial purposes. This has led to an increase in the environmental dynamism of the markets in which the businesses operate. Today, under difficult competitive conditions, businesses struggle to survive. From this point of view, total quality management and innovation enterprises are important issues to be emphasized. The problem of this study is to investigate the impact of total quality management practices of firms operating in manufacturing industry on innovation and firm performance. In addition, the role of innovation performance in the impact of total quality management practices on firm performance has been examined in the analyzes made. The regulatory role of environmental dynamism between quality management practices innovation and firm performance has been tested. For this purpose, a pilot study was carried out with data obtained from 170 firms operating in the manufacturing industry in Gaziantep, Kahramanmaraş and Şanlıurfa. Then, the first 1000 industrial firms of Turkey, which was declared by the Istanbul Chamber of Industry in 2015, were determined as the universes of the research and the data obtained from 203 firms by questionnaire were analyzed with SPSS and AMOS package programs. As a result of the analyzes made, it was seen that the firms' total quality management practices significantly affected the innovation and firm performance in the positive direction. Innovation performance was found to significantly affect firm performance in the positive direction. The impact of total quality management practices on firm performance has been achieved as a result of innovation performance. The finding that quality management practices has a role in regulating environmental dynamism in the impact on innovation performance has been achieved. In addition, companies have found that innovation, financial, quality and customer performances differ significantly from R & D and technology investment rates and the number of new products they have developed. Keywords: total quality management practices, innovtion performance, environmental dinamism, research & development, technology, structural equation model