**3.3 Procedures and design**

Congruent with the previous research in contingency theory [8], the present research considers quality management as an integrated organizational strategy. As *Exploring the Effects of Learning Capability and Innovation on Quality Management… DOI: http://dx.doi.org/10.5772/intechopen.102503*

such, the study used structural equation modeling to explore the independent and interaction effects of integrated quality management, innovations, and organizational learning on organizational performance. For parsimony, and to reduce the number of relationships, a hierarchical component model was created. Model I (**Table 1**, **Figure 1**) shows the results of the structural equation modeling analysis of the high component model, and standardized regression weights showing integrated quality management association with organizational learning capability, products and services innovations, and organizational performance. The hierarchical analysis of Model I also shows the relationship between each of the four constructs in this study with their sub-constructs.

#### **4. Analysis**

#### **4.1 Main constructs, sub-constructs, and variables**

*Integrated quality management.* According to the results shown in Model 1 (shown in **Table 1**), integrated quality management is positively and significantly associated with continuous education and employee training (*B* = 0.90), and continuous long-term employee support after the implementation of quality management (*B* = 0.72). Furthermore, continuous improvement programs (B = 0.61), managing the supplier relationship (*B* = 0.55), customer relations and satisfaction (*B* = 0.45), and employee involvement in the decisionmaking processes (*B* = 0.41) were positively and significantly associated with quality management.

*Organizational learning capability.* As shown in Model I (shown in **Table 1**), the organizational learning capability construct has a positive and significant relationship with long-term management commitment to involve employees in decision-making processes (*B* = 0.84). Results also indicated that within and inter-subunit knowledge transfer significantly influenced and enhanced organizational learning capability (*B* = 0.83). Furthermore, organizational learning capability is positively and significantly associated with the exploration of new ideas, and exploitation of the existing process to enhance further process improvements (*B* = 0.66). Results also indicated that subunits independently set divisional strategies and goals, and were responsible for co-align their strategies and goals with overall organizational strategies, goals, and mission (*B* = 0.71).

*Innovation.* Results (shown in **Table 1**) revealed that top managers encouraged and permitted exploration of new products and services (*B* = 0.92) and process innovation (*B* = 0.78). Furthermore, overall organizational innovations were significantly related to operational cost reductions and revenue generations (*B* = 0.79).

*Organizational Performance.* The results (shown in **Table 1**) indicated that the implementation of integrated quality management instituted organizational performance assessments were associated with continuous monitoring of the competitive dynamics in the marketplace (*B* = 0.63). Furthermore, results also indicated that the performance construct has a significant relationship with employee work satisfaction (*B* = 0.75), employee participation in decision-making processes (*B* = 0.63), customer expectations and satisfaction (*B* = 0.59), projected financial post-integrated quality management implementation (*B* = 0.65), and implementation of environmental sustainability programs (*B* = 0.92).


#### **Table 1.**

*Results of structural equation modeling-model I.*

For the accuracy of the constructed model and to make sure the data is presenting accurate and reliable drawing from the population under study the Kolmogrov-Smrinov (KS) test was performed [40, 41]. **Table 2** shows that all four variables' data are normally distributed.

*Exploring the Effects of Learning Capability and Innovation on Quality Management… DOI: http://dx.doi.org/10.5772/intechopen.102503*


#### **Table 2.**

*One-sample Kolmogrov-Smrinov biased analysis.*
