| Summary: | The purpose of this paper is to examine the reciprocal relation between total quality management (TQM) and knowledge management (KM) and their impact on process and product innovation. The data were collected from a survey of 190 research and development (R&D) unit managers in Malaysia. Confirmatory factor analysis was used to assess the reliability and validity of the measurement model, and in the next step, structural analysis was performed to evaluate the research model. The results revealed that there is a reciprocal relationship between TQM and KM. Additionally, TQM and KM showed a positive association with process and product innovation. Regarding the controversy of the relationship between TQM and innovation, this study supports the positive association between TQM and innovation. This study is among the first studies which provide empirical evidence to a reciprocal relationship between TQM and KM. The analysis shows that R&D firms by implementing TQM alongside KM not only are able to manage their activities efficiently, but also are able to effectively perform in an innovative manner.
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