Mediating Role of Innovation in the Relationship between Total Quality Management and Environmental Performance of Food and Beverage Manufacturing SMEs in Ghana
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This paper examined the effect of TQM on environmental performance (EP) and the mediating role of innovation (INN) in this relationship. We employed a quantitative research method and collected cross-sectional data from 320 SMEs in the food and beverages manufacturing industry OF Ghana. We further utilised PLS-SEM to analyse the data collected. The main results revealed that TQM has a favourable and substantial impact on EP (β = 0.812, p-value = 0.000) and on INN (β = 0.771, p-value = 0.000). Additionally, INN has a favourable and substantial impact on EP (β = 0.163, p-value = 0.000), and, finally, INN partially mediates the direct link between TQM and EP (β = 0.126, p-value = 0.000). However, this mediating effect was strongly influenced by continuous improvement, employee involvement and product innovation. Therefore, SMEs in the food and beverages manufacturing sector should consider investing more in continuous improvement and employee involvement initiatives. Also, pay close attention to and adapt to changes in taste and market trends related to their products.