Digital Innovation and Quality Management Synergies: Evidence from High-Performance Organizations

Abstract

This paper will investigate the synergetic connexion between quality management practises and digital innovation and their joint effect on the performance of the organisation in a high-performance organisation. The study will be based on the Resource-Based View (RBV) and the Dynamic Capabilities Theory, which suggest that digital innovation capabilities complement the quality management systems, and their combination produces a synergistic effect, which reinforces business excellence performance. Relying on the quantitative survey design data were gathered in 312 managers of successful firms of manufacturing and service industries, and the suggested model was evaluated with the help of Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings indicate that digital innovation affects the performance of the organisation (β =0.34, p < 0.001) and quality management (β = 0.49, p < 0.001) influentially, and quality management, in its turn, affects the performance (β =0.41, p < 0.001) in an appropriate manner. The structural model describes 62% of the variance in the performance of the organisation (R²= 0.62) in justification of a considerable predictive power, and the interaction effect confirms a high level of synergy between digital innovation and quality management. On the managerial side, the results indicate that to derive optimal performance growth, organisations need to combine digital transformation efforts with an established quality system in their strategic efforts to generate value and maintain a competitive edge. The study makes a contributions to the quality and innovation literature by empirically confirming the digital; quality synergy framework, and providing a sound model based on PLS-SEM that assists in comprehending the role of integrated capabilities in bringing business excellence.