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The Impact of Total Quality Management on Green Performance:
The Mediating Role of Green Innovation
1
Dorsaf Chaher*,
2
Lassaad Lakhal
1
Doctor, University of Sousse, Faculty of Economics and Management, Tunisia
2
Professor, University of Sousse, Faculty of Economics and Management, Tunisia
*Corresponding Authors
DOI:
https://doi.org/10.47772/IJRISS.2025.91100472
Received: 21 November 2025; Accepted: 28 November 2025; Published: 19 December 2025
ABSTRACT
The current environment is characterized by complexity and uncertainty, requiring companies to develop new
strategic choices and management approaches to remain competitive and fulfill their responsibilities to all
stakeholders. Today, customers, investors, and stakeholders are increasingly demanding greater transparency
and responsibility from companies, particularly regarding their green practices. Total Quality Management
(TQM) and Green Innovation (GI) are considered strategic orientations for adapting to environmental changes
and achieving green performance (GP). However, there is a gap in the literature regarding the study of the
relationships among these three concepts in a single analysis. To address this gap, we proposed a conceptual
model and formulated research hypotheses. The aim of this research is to analyze the relationships between
TQM, GI, and GP in the context of an emerging country, namely Tunisia. More specifically, this study highlights
the mediating effect of GI between TQM and GP. A questionnaire was administered to top managers of 105
certified manufacturing companies in Tunisia. The data were analyzed using structural equation modeling (SEM)
with the PLS approach to examine the effects of TQM on GI and GP. The results demonstrate that TQM
positively affects both GI and GP. Additionally, GI positively influences GP. Furthermore, the findings indicate
that GI partially mediates the relationship between TQM and GP. This study provides valuable guidance to
practitioners on improving green performance by integrating TQM practices and green innovation into their
business operations. It encourages managers to understand the potential connection between TQM and green
innovation and to leverage this relationship as a catalyst for achieving sustainable performance and gaining a
competitive advantage.
Keywords: Total quality management (TQM), green innovation (GI), Green performance (GP).
INTRODUCTION
Manufacturing companies remain a key factor contributing to environmental problems such as natural resource
depletion, climate change, and pollution (Aftab et al., 2023). Recently, the scope of Total Quality Management
(TQM) has been broadened to include dimensions beyond the organization's internal structure, such as the
incorporation of social responsibility and environmental policies (Tasleem et al., 2019). It is a management
system that focuses on continuous improvement, aiming to use resources effectively, reduce costs, and optimize
human effort (Abbes, 2019). The relationships between TQM practices and green performance (GP) have been
studied by many researchers within distinctive contexts, leading to mixed results, calling for more research
studies (Akanmu et al., 2023). However, Albloushi et al. (2023) suggest the existence of a positive link between
TQM and CSP. On the other hand, Makhlouf et al. (2023) report that there is a negative relationship between
TQM and GP. Green innovation is considered a mechanism to lead firms’ success in the long term (Aftab et al.,
2023). Green innovation is considered a key factor that can help companies introduce environmentally friendly
processes, technologies, products, and methods into production operations in order to protect the natural
environment (Chang, 2011). This approach is essential for meeting sustainable development challenges and is
often considered a key driver of business performance (Le, 2022; Albloushi et al., 2023). The studies that
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examined the link between GI and GP reveal a controversial relationship with mixed and inconclusive results
(Chang, 2011; Przychodzen et al., 2018; Padilla-Lozano & Collazzo, 2022). The literature addressing the
relationship between TQM and GP reveals significant gaps in specifying the causal links among these variables,
particularly in developing countries (Abbas, 2020). Consequently, it is essential to examine the interrelationship
between TQM, GI, and GP within a unified analytical framework.
Therefore, the current study aims to answer the following research questions:
1. What is the effect of TQM practices on GP?
2. Does GI mediate the relationship between TQM and GP?
This paper is organized into six sections. The second section presents the literature review and develops the
hypotheses. The research methodology is outlined in the third section. The fourth and fifth sections present and
discuss the results. Finally, the conclusion, implications, and limitations are presented in the last section.
THEORETICAL FRAMEWORK AND DEVELOPMENT OF RESEARCH HYPOTHESES
TQM and green performance
TQM is a relevant factor that enables companies to achieve their green performance goals (Abbes, 2020). It is
a management system that focuses on continuous improvement, aiming to use resources effectively, reduce costs,
and optimize human effort. According to Shafiq et al. (2019), TQM is a tool that can help companies improve
the quality of their products and services, reduce defect rates, and enhance customer satisfaction. Zhang et al.
(2020) stated that the successful implementation of TQM has the potential to achieve performance across the
three pillars of the triple bottom line (TBL) economic, social, and environmental. According to Qasrawi et al.
(2017), integrating corporate sustainability (CS)with quality management can significantly enhance firms’
performance in all TBL pillars. Abbas (2020) investigated the relationship between TQM in the Pakistani
manufacturing and service sectors. The results revealed a positive relationship between TQM and corporate
sustainability. Hassis et al. (2023) reported that TQM has a significant impact on CS in the Palestinian context
using a sequential mixed-method research technique. In contrast, the study by Makhlouf et al. (2023) showed a
negative relationship between TQM and CS in the Chinese industry. Aquilani et al. (2016) reported that TQM
practices help organizations achieve sustainable development (SD).
Thus, we propose the following hypothesis:
H1. TQM positively influences GP.
TQM and green innovation
TQM has been considered a key driver of green innovation (Abbas, 2020). However, the assessment of the
relationship between the two has been inconclusive (Prajogo and Sohal, 2001; Castillo-Rojas et al., 2012;
Manders et al., 2016). The philosophy of continuous improvement advocated by quality management may hinder
firms from pursuing radical green innovations Steiber and Alange (2013). Zeng et al. (2017) argued that the
adoption of TQM practices creates a conducive environment for companies to innovate, serving as a significant
catalyst for green innovation. In contrast, the study by Li et al. (2018) showed a negative relationship between
TQM and green innovation in the Chinese industry. Results from the study of Albloushi et al. (2023) showed
that TQM significantly enhances firms’ capabilities to innovate in the UAE industry. Azam et al. (2023)
described green theory as providing a theoretical basis for clarifying the relationship between TQM and GI and
reported that TQM practices positively impacted two aspects of GI, namely green product innovation and green
process innovation, in Pakistani manufacturing firms.
Hence, we propose the following hypothesis:
H2. TQM positively influences GI
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Green innovation and green performance
Green innovation is a powerful lever for achieving green performance(Hur et al., 2013). GI is one of the tools
that involves creating environmentally friendly products, processes, and management practices in order to
achieve long-term sustainability (Xie et al., 2019; Li et al., 2017). GI encompasses various areas, such as
reducing resource usage and minimizing waste and pollution (Rossiter and Smith, 2018). The study by Abbas
and Sagsan (2019),which focused on a sample of industrial companies in Pakistan, confirmed a positive
relationship between green innovation and corporate sustainability. Asadi et al. (2020) conducted an empirical
investigation based on a questionnaire administered to 183 Malaysian companies, and the findings showed that
GI significantly improves green performance. Azam et al.(2023) investigated how GI affects GP in the Pakistani
manufacturing sector. The authors reported that GI, including green product innovation and green process
innovation, positively impacts GP. Therefore, we hypothesize that,
H3. Green innovation positively influences corporate sustainability
The indirect effects of TQM on green performance
The relationship between TQM and green performance (GP) has been extensively studied in the literature by
several researchers, yet no consensus has emerged regarding the link between the two constructs (Alboushi et
al., 2023 ; Makhlouf et al., 2023). As a result, some researchers have recommended that mediating variables
may be essential for understanding the relationship between TQM and corporate sustainability performance
(CSP). Thus, it is relevant to examine the mediating effect of green innovation (GI) in this relationship. Azam
et al. (2023) argued that companies can increase their GI by implementing TQM. The study by Albloushi et al.
(2023) in the UAE context showed that GI partially mediates the relationship between TQM and GP. This
indicates that the efficient implementation of TQM practices can significantly enhance an organization's GI
activities, which in turn positively impacts corporate sustainability. Therefore, we hypothesize that.
H.4 TQM positively influences GP through GI.
direct effect H2 H3
indirect effect H4
H1
Figure 1. A conceptual model on the relationship between TQM, GI and GP
RESEARCH METHODOLOGY
Sample and Data collection
The study sample in the current research consists of certified manufacturing industries in Tunisia. We selected
the list of the target population from the Tunisian Industry Portal. Data were collected using a survey
questionnaire covering TQM, GI, and GP. We contacted and then sent a questionnaire to 345 certified
manufacturing companies. The questionnaire was administered by email to top management. We received 121
questionnaires; however, only 105 were retained due to missing and/or doubtful responses. Table 1 summarizes
the respondents’ and industries’ profiles.
TQM
GI
GP
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Table 1. Demographics results
Ethical Consideration
During the research,ethical standards were strictly followed.To ensure confidentiality, participants were
informed that all responses they provided would remain strictly confidential and be used exclusively for
academic purposes. They were also informed that their participation was voluntary and that they could withdraw
from the study at any time without any negative consequence. Furtheremore, no data that could personally
identify the participants was collected.
Variable measurement
In this study, six TQM practices were considered: leadership, strategic planning, customer focus, human resource
management, process management, and information and analysis, as these are the most widely cited in the
literature (chaher et Lakhal,2024 ; Abbes, 2021). To measure the TQM dimensions, we used the scales developed
by Abbas and Kumari (2021) and Chaher and Lakhal (2024). Strategic planning, customer focus, human resource
management, process management, and information and analysis were each measured using five items, while
leadership was measured using four items. Green performance was assessed using five items adapted from Yu
et al. (2017), Roscoe et al. (2019), and Singh et al. (2020). The green innovation dimension—namely green
product innovation and green process innovation—was measured using four items each, based on the scale
developed by Chen et al. (2006).
RESULTS
The collected data were analyzed using partial least squares structural equation modeling (PLS-SEM).
Descriptions
Characteristics
Values
Percentage %
Number of
employees
<50
50-199
200-500
More than 500
14
25
46
20
13.3
23.8
43.8
19.1
Gender
Female
Male
7
98
6.7
93.3
Age
20-29
30-39
40-49
More than 50
8
41
42
14
7.6
39
40
13.3
Job experience
Less than 3 years
3 to 5years
6 to 10 years
More than 10 years
12
33
19
41
11.4
31.4
18.1
39.1
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Assessment of the the measurement model
In accordance with Hair et al. (2019), measurement model reliability was assessed using Cronbach’s alpha and
composite reliability (CR). Table 1 confirms that all values exceed the recommended threshold of 0.7 (Hair et
al., 2018). Furthermore, validity was established through the examination of factor loadings, convergent validity,
and discriminant validity. Table 1 demonstrates that all factor loadings exceed the 0.7 cutoff suggested by Hair
et al. (2018), confirming that each item has a strong correlation with its corresponding construct.
Average Variance Extracted (AVE) was used to evaluate convergent validity. The findings reveal that all AVE
values exceed the threshold of 0.5, as suggested by Fornell and Larcker (1981), confirming convergent validity.
Table 2. Reliability and convergent validity analysis
Constructs
No. of items
Cronbach’s
Alpha
Factor
Loading
Composite
Reliability
AVE
Leadership
LD1
0.903
0.842
0.932
0.775
LD 2
0.895
LD3
0.910
LD5
0.873
Information and
analysis
IA1
0.888
0.764
0.918
0.693
IA2
0.853
IA3
0.829
IA4
0.844
IA5
0.867
Policy and strategy
PS1
0.849
0.776
0.894
0.630
PS2
0.771
PS3
0.732
PS4
0.895
PS5
0.873
Process
management
PM1
0.878
0.814
0.911
0.672
PM2
0.791
PM3
0.861
PM4
0.823
PM5
0.809
Human resource
management
HRM1
0.865
0.808
0.903
0.651
HRM2
0.865
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HRM3
0.712
HRM4
0.845
HRM5
0.797
Customer focus
CS1
0.859
0.855
0.904
0.702
CS2
0.793
CS3
0.870
CS4
0.832
Green product
innovation
GPI1
0.902
0.893
0.932
0.773
GPI2
0.876
GPI3
0.914
GPI4
0.887
Green performance
GP1
0.870
0.876
0.906
0.659
GP2
0.773
GP3
0.788
GP4
0817
GP5
0.802
Green Process
Innovation
GPRI1
0.814
0.768
0.872
0.642
GPRI2
0.829
GPRI3
0.786
GPRI4
0.820
The Fornell and Larcker criterion and the HTMT ratio are generally used to evaluate discriminant validity (Hair
et al., 2014). According to Fornell and Larcker (1981), to establish discriminant validity, the square root of the
AVE of each construct should be greater than its correlation with any other construct in the model ;According
to Hair et al. (2019), the HTMT ratio should be below the threshold of 0.90 to confirm discriminant validity.
Tableau 3. Fornelle-Larcker criterion analysis
CS
GP
GPI
GPRI
LD
MP
IA
PS
RH
CS
0,838
GP
0,214
0,812
GPI
0,238
0,329
0,879
GPRI
0,316
0,552
0,329
0,801
LD
0,180
0,414
0,230
0,404
0,880
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MP
0,207
0,504
0,270
0,448
0,670
0,820
IA
0,210
0,509
0,180
0,414
0,490
0,729
0,832
PS
0,289
0,461
0,195
0,406
0,602
0,648
0,602
0,794
HRM
0,195
0,532
0,257
0,455
0,606
0,733
0,705
0,647
0,807
Notes : LD : Leadership; CS : Customer Focus; GPI : Green Product Innovation; GPRI : Green Process
Innovation; MP : Process Management;
PS : Politics and Strategy; IA : Information and Analysis; HRM : Human Resources Management; GP : Green
Performance
Tableau 4. HTMT Ratio
CS
GP
GPI
GPRI
LDSH
MP
IA
PS
HRM
CS
GP
0,242
GPRI
0,382
0,651
0,368
LDSH
0,199
0,462
0,252
0,471
MP
0,234
0,578
0,302
0,534
0,749
IA
0,238
0,577
0,202
0,493
0,546
0,826
PS
0,329
0,533
0,224
0,492
0,682
0,743
0,687
HRM
0,224
0,605
0,285
0,542
0,668
0,826
0,793
0,743
Structurel Model
The coefficient of determination (R²) and the cross-validated redundancy (Q²) were checked to evaluate the path
model's predictive accuracy. Chin et al. (1998) suggested that an the R² values of 0.26, 0.13, and 0.02 indicate
substantial, moderate, and weak relevance , respectively. According to Hair et al. (2014), a Q² value greater than
0is considered satisfactory. The data in Table 5 indicate that TQM and GI together are responsible for 42% of
the variation in GP.
Table 5. Coefficient of determination (R²)
R Square
R Square Adjusted
Résults
GI
0. 341
0.334
substantial
GP
0.420
0.409
substantial
Table 4 show that Q2 Values for all endogenous construct exceeding zero indicating that the path model meets
predictive relevance.
Table 6. Cross-validated redundancy(Q²)
Variables endogènes
Q2
Résultat
GI
0,103
Significatif
GP
0,270
Significatif
In the end, a bootstrapping procedure was conducted to test the direct and indirect relationships between TQM,
GI, and GP. The results reveal a positive and significant relationship between TQM and GP (β = 0.413; T =
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4.433; p < 0.001), confirming Hypothesis 1. Additionally, a positive relationship was found between TQM and
GI (β = 0.491; T = 7.958; p < 0.001), supporting Hypothesis 2. The results also indicate a positive and significant
relationship between GI and GP (β = 0.336; T = 3.662; p < 0.01), confirming Hypothesis 3. Finally, regarding
the mediation hypothesis, the results show that TQM has an indirect effect on GP through the mediating role of
GI (β = 0.165; T = 2.905; p < 0.01).
Table 7. Hypothesis testing.
Hypothesis
Constructs
Original
Sample
(O)
Sample
Mean
(M)
Standard
Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P Values
Hypothesis
Decision
Direct effect
H1
TQM GP
0,413
0,403
0,093
4 .433
0,000
Accepted
H2
TQM GI
0,491
0,500
0,062
7.958
0,000
Accepted
H3
GI GP
0,336
0,352
0,092
3.662
0,002
Accepted
Mediation
H4
TQM GI GP
0,165
0,178
0,057
2.905
0,004
Partial
Mediation
DISCUSSION
The aim of this study is to analyze the effect of TQM on GP through the mediating role of GI. The results show
that TQM has a positive relationship with GP. This finding is consistent with the study of Abbas (2020) which
confirmed that the implementation of TQM practices promotes green performance. Furthermore, the results
indicate a positive relationship between TQM and GI. This finding aligns with the study of Nazarian et al. (2025),
which demonstrated that TQM is a pivotal factor in enhancing green innovation in Pakistani manufacturing
companies. However, this result contradicts the findings of Li (2018), who reported that TQM has no significant
effect on GI.TQM is based on a set of principles, including continuous improvement, customer focus, employee
involvement, and leadership, which can enhance a company’s capacity to foster a culture oriented toward green
innovation (GI) and corporate sustainability. The results also show that GI has a positive effect on GP. This
finding is consistent with the study by Hussain et al. (2022), which suggests that GI can promote environmental,
social, and economic sustainability in manufacturing companies in the UAE. Finally, the results of this empirical
study illustrate that TQM has an indirect effect on GP through the mediating role of GI. The introduction of GI
as a mediating variable strengthens the impact of TQM on GP. These results are consistent with the findings of
Albloushi et al. (2023) in the UAE context, which showed that GI partially mediates the relationship between
TQM and GP. Overall, the findings of the current study indicate that adopting TQM practices enables companies
to promote green innovation, which, in turn, contributes to achieving green performance.
CONCLUSION
The main aim of this study is to analyze the relationship between TQM GI and GP in developing country context.
The findings showed that TQM positively associate with GI and GP. Additionally, the study shows that GI
positively influences GP. Furthermore, the results indicate that GI partially mediates the association between
TQM and GP
Theoretical contribution
This study contributes to the current literature in several ways. First, this study provides a conceptual model to
examine the relationship between TQM, GI and GP, by explaining the path of this relationship. Second, the
conceptual model highlights the mediating effect of GI between TQM and GP
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Managerial contribution
This research provides managerial contributions. It encourages managers to understand the potential connection
between TQM and green innovation and to leverage this relationship as a catalyst for enhancing the GI of their
companies. The study highlights the importance of TQM in promoting green innovation and corporate
sustainability. Businesses are encouraged to adopt a comprehensive set of TQM practices—such as continuous
improvement, top management commitment, employee involvement, and evidence-based decision-making—to
foster a culture that supports green innovation and achieves long-term sustainability goals. Furthermore, this
research emphasizes the significant role of green innovation in enhancing green performance. Managers are
encouraged to actively integrate green innovation into operational activities, such as the use of eco-efficient
technologies, green materials innovation, waste-reduction practices, and energy-efficient processes. By
incorporating these green practices into daily operations, managers can strengthen their organizations’ social,
economic, and environmental sustainability. Finally, the study urges managers to consider TQM and GI as
strategic investments that contribute to sustainable development and provide a competitive advantage
Limitations and Future Perspectives
This study has certaines limitations. First, the sample size was relatively small (105 companies). Future research
could test this model on a larger sample to enhance the generalizability of the results. Second, a cross-sectional
design was employed. Future studies are encouraged to adopt a longitudinal approach to more accurately
examine the causal relationships between total quality management, green innovation, and green performance
over time. Finally, although this study focused on certified manufacturing companies located in Tunisia, future
research could explore other industries or regions to assess whether the findings hold across different contexts.
Additionally, other potential mediators, such as green entrepreneurial orientation or green knowledge
management, could be investigated in the relationship between TQM and GP.
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