Mediator Effect of TPM between TQM and Business Performance in Malaysia Automotive Industry
Total Quality Management (TQM) is vital management tool in ensuiing a company
can success in the continuonsly growing competition in the global market. In order to survive
in the global market with intense competition amongst regions and enterprises, the adoption of
tools and techniques are essential in improving business performance. Howe~er, only few
previous studies have examined the mediators and moderators between TQM and business
performance. This present rcsearch proposed a TQM performance model with mediator effect
of TPM with structural equation modelling, which is a more comprehensive model for
developing countries, specifically for Malaysia. A questionnaire was prepared and sent to 1500
companies from automotive industry and the related vendors in Malaysia, giving a 21.3 per
cent rate. The result concludes that TPM is partial mediation between and TQM and Business
Performance with indirect effect (IE) is 0.25 which can be categorised as high mediator effect