The Role of TQM Practices in Technological Innovation: The Portuguese Footwear Industry Case

Abstract The relationship between TQM and innovation is complex. Literature suggests that the role of TQM varies according to the type of innovation we intend to introduce, essentially favouring incremental innovation while possibly being detrimental to radical innovation. The Portuguese footwear industry is dominated by small-to-medium units with a lack of resources to carry out radical innovations. Cases of success identified in the industry clearly show the importance of developing a close relationship with customers, suppliers, competitors and institutions, which allows the constant introduction of changes in processes and product designs. Based on the literature review and case studies research, we have developed a survey instrument that was administered to a set of small and medium size firms. Data thus collected is used in this paper to investigate the relationship between key TQM principles, especially those with regard to people management and work organisation issues, and firms' technological innovation.