The impact of strategic quality orientation on innovation capabilities and sustainable business growth: Empirical evidence from the service sector of Pakistan
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 3 September 2018
Abstract
Purpose
The purpose of this paper is to present a new conceptual framework for service organizations to achieve sustainable business performance through strategic quality orientation and innovation capabilities on the basis of relevant literature review and integration of various innovation and business sustainability theories and models. The study tests if the strategic quality orientation enhances innovation capabilities in terms of exploitation and explorative innovation, which, in turn, can lead to sustainable business growth. Mediating impact of innovation capabilities between strategic quality orientation and sustainable business growth relationship is also examined.
Design/methodology/approach
A conceptual framework was developed to test and establish these relationships. Results were analyzed based on 442 questionnaires collected from five different service industries of Pakistan, and the structural equation modeling technique was used to empirically test the conceptual framework.
Findings
The results indicate that strategic quality orientation directly affects innovation capabilities and sustainable business growth and also indirectly impacts sustainable business growth through its effect on innovation capabilities.
Practical implications
The study suggests service organizations can jointly implement quality and innovation using a structured approach, with strategic quality orientation as the foundation. In this way, they can leverage from their strategic quality management, supplier relationship, corporate quality culture, continual improvement and people management in order to ensure innovation and sustainability in their business growth.
Originality/value
The study integrates strategic quality orientation and innovation capabilities, and validates a new organizational framework through empirical examination which can be used by service organizations to ensure their sustainable business growth.
Keywords
Citation
Khan, B.A. and Naeem, H. (2018), "The impact of strategic quality orientation on innovation capabilities and sustainable business growth: Empirical evidence from the service sector of Pakistan", International Journal of Quality & Reliability Management, Vol. 35 No. 8, pp. 1568-1598. https://doi.org/10.1108/IJQRM-07-2017-0126
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited