In a review of the literature covering the relationship
between TQM and innovation, Prajogo
and Sohal [13] identified two competing arguments.
The first argument suggests that TQM is
positively related to innovation performance because
it establishes a system and culture that will
provide a fertile environment for organizations
to innovate [14–18]. The opposing argument holds
that the implementation of TQM principles and
practices could hinder organizations from being
innovative [19,20]. Among several key principles
of TQM, customer focus philosophy has received
considerable attention in relation to its negative
impact on innovation [21–24]. As argued by these
scholars, the principles of customer focus could
trap organizations into captive markets where they
will focus on meeting the needs of existing customers
and therefore view their business only through
their current customers eyes. As a result, these
companies could fail to drive the search for innovative
and novel solutions by ignoring the unserved
potential in their markets.