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Original Research
The influence of Total Quality Management on firms’ intellectual capital
Submitted: 21 August 2018 | Published: 21 November 2018
About the author(s)
Emilio Ruiz, Department of Business Administration, University of Castilla–La Mancha, SpainJesus D. Sanchez De Pablo, Department of Business Administration, University of Castilla–La Mancha, Spain
Rosa M. Muñoz, Department of Business Administration, University of Castilla–La Mancha, Spain
Isidro Peña, Department of Business Administration, University of Castilla–La Mancha, Spain
Abstract
Background: After carrying out an extensive literature review, it is clear that Total Quality Management (TQM) has a significant influence on many areas of companies. The development of quality management practices can lead to the generation of intellectual capital and thus become a key competitive factor.
Objectives: The purpose of this research was to explore whether TQM practices have a positive influence on a company’s intellectual capital.
Method: We formulate three hypotheses considering the components of intellectual capital: human capital, social capital and organisational capital. This article develops an empirical analysis through the use of structural equation modelling using the partial least squares technique.
Results: The results show that TQM has a strong positive causal effect on intellectual capital.
Conclusion: This research, therefore, identifies a key determinant of one of the most important strategic variables for companies at present: intellectual capital.
Keywords
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