The current study focuses on the relationship between total quality management (TQM) and sustainable performance (SP) and examines how TQM practices can facilitate firms' achievement of sustainable performance. Knowledge management (KM), with its four dimensions, i.e. knowledge creation (KCR), knowledge acquisition (KAC), knowledge sharing (KSH) and knowledge application (KAP), is also an essential factor for organizations. Therefore, this study also focuses on the mediating role of KM in the relationship between TQM and sustainable performance.
This study used a survey method to collect data from the managers of 485 manufacturing SMEs working in five major industrial cities in Pakistan. Collected data were analyzed through PLS-SEM with the help of smart-PLS.
The study's findings reveal that TQM practices positively influence the environmental and economic sustainability of the firm. At the same time, there is no evidence that TQM practices positively affect the social sustainability of the firm. Results further elaborate that TQM practices significantly affect all four dimensions of KM. Moreover, KM positively affects the two dimensions of SP, i.e. economic and social sustainability, but surprisingly, the impact of KM on environmental sustainability is not found. Finally, results indicate the significant mediating role of KM between TQM and SP.
This study contributes to bridging research gaps in the literature and advances how TQM, directly and indirectly, helps firms improve sustainable performance via the mediating role of KM.
