Measuring the Impact of Continuous Quality Improvement Practices on Innovation Outcomes and Competitive Advantage

Abstract

The continuous Quality improvement (CQI) practises are widely spread to achieve the efficiency of operations and the product reliability, and their strategic role in the innovation performance and sustainable competitive advantage is under-investigated. This paper talks of the effects of CQI practises on the innovation results and competitive advantage based on the theoretical perspective of Resource-Based View (RBV) and the Dynamic Capabilities Theory. The proposed relationships were tested in Structural Equation Modelling (SEM) when the quantitative survey was carried out in 268 manufacturing and service companies. The findings reveal that CQI practises have significant and positive effects on product and process innovation results. On their part, the outcomes of the innovation have a significant positive impact on the competitive advantage. Moreover, the mediation analysis establishes that innovation outcome is a partial mediation between CQI practises and competitive advantage that implies that quality-based company routine increases competitiveness both directly and indirectly facilitated by the development of innovation capability. These are some of the findings that re-rank CQI as a strategy-enabled tool that promotes innovation-driven differentiation and long-term performance rather than merely being a tool of operational effectiveness in most instances. The research paper leverages the existing literature on the quality management field and innovation by empirically elucidating the mechanism by which continuous upgrading programmes lead to the prevalence of competitive advantage. The implications to managers involve the necessity to incorporate CQI models and innovation strategy to optimise the development of long-term organisational value.