The proposed framework focuses on examining the mediating effect organization learning on the relationship
between TQM and SMEs performance. The competitive nature of modern-day business forces a firm to
continuously improve business performance. This can be done by developing a quality culture and applied the
principles of TQM. Companies large and small, in the manufacturing and service sector, multinational (Demirbag et
al., 2006) and developed and developing countries (Adam et al., 1996) have applied the principle of TQM that can
generate more benefits and advantages. This proposed study will deal with how SMEs gain benefits through TQM
practices in enhancing the success of organization learning capability, thus having a positive impact on performance.
Moreover, findings from this study may also provide better understanding of the effect of mediator on the
relationship between TQM and SMEs performance. The need of a mediator for this relationship is because previous
studies have a mixed and inconsistent result; thus, many scholars make some conclusion to include other factors as a
mediator to this relationship (TQM-business performance), (Maçães et al., 2007). The mediator variable of this
study, namely organization learning, will hopefully serve as a positive indirect relationship between TQM and
business performance and at last provide a new theoretical contribution. In fact, several gaps in this research field
remain due to few studies performed in such a way that the relative factors of TQM affect SME performance in
terms of the organization learning variable. Finally, previous authors in this field recommended that SMEs invest
and practice this managerial practice, namely TQM and organization learning. These valuable tools can be a source
of competitive advantage which can make SMEs competitive, just like large companies.
The proposed framework focuses on examining the mediating effect organization learning on the relationshipbetween TQM and SMEs performance. The competitive nature of modern-day business forces a firm tocontinuously improve business performance. This can be done by developing a quality culture and applied theprinciples of TQM. Companies large and small, in the manufacturing and service sector, multinational (Demirbag etal., 2006) and developed and developing countries (Adam et al., 1996) have applied the principle of TQM that cangenerate more benefits and advantages. This proposed study will deal with how SMEs gain benefits through TQMpractices in enhancing the success of organization learning capability, thus having a positive impact on performance.Moreover, findings from this study may also provide better understanding of the effect of mediator on therelationship between TQM and SMEs performance. The need of a mediator for this relationship is because previousstudies have a mixed and inconsistent result; thus, many scholars make some conclusion to include other factors as amediator to this relationship (TQM-business performance), (Maçães et al., 2007). The mediator variable of thisstudy, namely organization learning, will hopefully serve as a positive indirect relationship between TQM andbusiness performance and at last provide a new theoretical contribution. In fact, several gaps in this research fieldremain due to few studies performed in such a way that the relative factors of TQM affect SME performance in
terms of the organization learning variable. Finally, previous authors in this field recommended that SMEs invest
and practice this managerial practice, namely TQM and organization learning. These valuable tools can be a source
of competitive advantage which can make SMEs competitive, just like large companies.
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