The Moderating Role of External Environment on the Relationship between Total Quality Management and Business Performance. A PLS Approach

This study investigates the moderating role of external environment on the relationship between total quality management and business performance of SMEs in Pakistan. This study is greatly motivated by the inconclusive findings and the gaps in the contemporary literature relating to the relationship amid Total Quality Management (TQM) and business performance, which was an important unresolved issue that needed further investigation. This study adds to the literature by bridging the gap and presenting the importance of moderating role of external environment on TQM and business performance of SMEs in Pakistan. The data were collected from the SMEs in Pakistan through a self-administered questionnaire in order to achieve the objectives of the study. The finding from the study shows that the relationship between TQM and business performance was found to be significant, while external environment plays a moderating role between TQM and business performance. The findings provide insights into how far the external environment (EE) can be the catalyst in the implementation of total quality management for the overall success of business performance of SMEs. In addition, the limitations of this study provide some future research directions that can be investigated to get valid and reliable results.