INNOVATION AS MEDIATING FACTOR BETWEEN TOTAL QUALITY MANAGEMENT AND COMPETITIVE ADVANTAGE AMONG MANUFACTURERS

This paper is aimed to explore the role of innovation as mediating role in relationship between TQM and competitive advantage within manufacturing sector in Malaysia. Quantitative method was used to find out the answer and questionnaires have been distributed to the management level in electrical and electronic (E&E) manufacturers in Malaysia. Statistical Package for the Social Science (SPSS) and ADANCO were the software used to analyze the data gathering from respondents. The result of analysis shown that total quality management (TQM) and innovation gave significant positive impact on competitive advantage. In addition, the innovation is mediate positively for the relationship between TQM and competitive advantage. Therefore, this research is expected to provide deep understanding regarding TQM, innovation, and competitive advantage for the manufacturing industry within Malaysia and acts as reference to future researchers.