The purpose of this paper is to investigate the impact of entrepreneurial orientation and total quality management on quality performance of pharmaceutical manufacturers in Pakistan. It also investigates the mediating role played by total quality management in the EO-QP relationship.
A structured questionnaire was used to collect data from 115 pharmaceutical manufacturers in Pakistan. Partial least squares structural equation modeling was used to analyze data.
The results show entrepreneurial orientation that and total quality management positively and significantly affect quality performance. Moreover, the effect of entrepreneurial orientation on quality performance is partially mediated by total quality management.
The study uses cross-sectional data. Therefore, the long-term effect of entrepreneurial orientation and total quality management on quality performance could not be determined. Moreover, quality performance has been measured based on perceptual data, which may be prone to biases, entrepreneurial orientation (EO), quality performance (QP), total quality management (TQM).
The study is unique in providing empirical evidence linking entrepreneurial orientation with quality performance through the mediating role of total quality management. Quality performance is vital in the pharmaceutical industry; thus, the study makes a valuable contribution by identifying a new mechanism to achieve it. Moreover, although both entrepreneurial orientation and total quality management are very important, only a few studies have so far investigated their interrelationship. By providing evidence from a new cultural and industrial context, the study makes a valuable contribution to an under-researched yet important area.
