Being green requires agility: does organizational agility matter for the relationship between TQM and green innovation

Abstract

Purpose: This research seeks to examine the relationship of total quality management (TQM) with green innovation (GI), including its dimensions: green product innovation (GPI), green process innovation (GPSI) and green managerial innovation (GMI), in the context of Malaysian manufacturing SMEs, a critical yet underexplored sector in an emerging Southeast Asian economy. Additionally, it explores whether organizational agility (OA) moderates the TQM-GI relationship. Design/methodology/approach: Data were collected from 219 valid responses out of 300 distributed questionnaires and analyzed using the partial least squares structural equation modeling (PLS-SEM) approach. Findings: The results indicated that TQM has a strong positive influence on all aspects of GI (GPI, GPSI and GMI). Notably, OA significantly moderates the relationship between TQM and both GPI and GPSI but not GMI. Specifically, a lower level of OA strengthens the relationship, whereas a higher level of OA helps maintain its stability. Originality/value: This study uniquely examines the TQM-GI relationship within Malaysian manufacturing SMEs, introduces OA as a moderator, extending the literature beyond linear TQM-GI models, and applies a framework grounded in resource-based view and dynamic capabilities theory to capture the interaction between structured quality management and dynamic organizational capabilities in driving GI. It offers practical insights for firms and policymakers in emerging markets.