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RESEARCH PRODUCT

TQM and Innovation: Controversial Issues Surrounding the Impact of Formalization over Radical Innovation

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The purpose of this chapter is to better understand the influence of total quality management (TQM) practices on innovation, examining the conflicting issues that surround the impact of process management implementation and the effects of subsequent formalization on radical innovation. We consider several arguments that appear in the literature, as well as empirical research findings on this topic, discussing how TQM can stimulate a context that favors innovation, putting all the experience and competences of the firm at the service of innovation goals, or conversely, considering the potential barriers that process management and formalization can build against radical innovation. An extensive review of the literature leads us to conclude that appropriately applied TQM, and particularly process management, is capable of fostering incremental innovation and does not hamper radical innovation, although consideration must be given to adapting TQM programs to particular circumstances, such as uncertain and rapidly changing environments. Further research is needed to garner a more comprehensive understanding of the complexity of leadership decision-making in terms of change and adaptation, as well as the role of possible mediating factors in the relationship between TQM and innovation.