Mediating effects of total quality management between entrepreneurial and market orientations, and international performance: from the developing-country context

Abstract

This study aims to examine the direct effect of entrepreneurial orientation (EO) and market orientation (MO) on the international performance of apparel small and medium enterprises (SMEs). It also examines the mediating impact of total quality management (TQM) on the relationship between EO, MO and SMEs’ international performance. The research has used a cross-sectional survey method to collect data from apparel SME owners and senior-level managers in Bangladesh. Data have been collected from 360 exporting firms, and the partial least squares structural equation modeling method has been applied for the final analysis. This research has revealed a positive association among EO, MO and SMEs’ international performance. It has also found a positive mediating effect of TQM on the relationships between EO, MO and SMEs’ performance. The results of this study will provide guidelines for the apparel industry executives to apply strategic orientations and TQM to enhance their firms’ performance. TQM fosters a culture of accountability and collaboration, enhancing employee morale and stakeholder trust across diverse regions. It enables SMEs to meet global quality standards, improving customer satisfaction and competitiveness. This pioneering study examines the impact of EO, MO and TQM on the international performance of apparel SMEs in a developing country, with TQM as a mediating factor. Grounded in dynamic capability theory, it offers both theoretical and practical contributions to international entrepreneurship and strategic management literature.