The purpose of this paper was to review the literature on the relationship between TQM and innovation in services
organizations, and to develop a research conceptual framework and initial conceptual model. Studies on TQM and
innovation relationship are still scarce in the literature. While service industries role in economics becoming more
important, all studies investigated the link between TQM and innovation conducted in manufacturing or in both
manufacturing and service organizations and no such a study focused on only service organizations. The theoretical
framework that drawn from the literature grounded by the perspective of TQM as a management philosophy within the
extensive management theory. The paper hypothesized and conceptualized the relationship between TQM practices and
innovation in a model comprised of top management leadership, employee involvement, employee empowerment, customer
focus, training, information analysis, and continuous improvement as independent variable, and radical product innovation ,
incremental product innovation, radical process innovation, incremental process innovation, administrative innovation, and
marketing innovation as dependent variable.