The mediating role of sustainable product development on the relationship between quality management practices and organizational performance : A study in Malaysian automotive industry

The influences of production enhancements in the world, in ASEAN countries and especially in the Malaysia automotive industry have prompted this study to investigate the relationship between quality management practices and
organizational performance. The Malaysian automotive industry has become an important component of the country's economic
development. This study also examines the effects of sustainable product development as a mediator and organizational characteristics as moderator of the study relationships. This study is based on 91 automotive component manufacturing suppliers of simple random sampling method was scattered throughout Malaysia. The data obtained in this study were analyzed using techniques such as factor analysis, multiple regressions, the Pearson Product Moment Test and Hierarchical Multiple Regression. Factor analysis was run to decrease items into specifics factors. Multiple Regression analysis was employed to test the relationships between quality management practices and organizational performance. The Pearson Product Moment Test was used to determine which dimensions of quality management practices had strong, positive, significant correlation related to organizational performance. Hierarchical Multiple Regression analysis was employed to investigate the relationship of sustainable product development as mediator, organizational characteristics as moderator in relationship with chosen variables. The study revealed that quality management practices had positive, significant relationships with organizational performance. In addition, Sobel's test showed that the mediating variable of sustainable product development influenced the relationship between quality management practices and organizational performance. This study also revealed that organization characteristics did not act as moderator in the relationship between quality management practices and
organizational performance. The study also revealed that various theories such as RBV, Institutional theory and Stakeholder theory can be used to improve the performance of automotive supplier organizations in Malaysia. Meanwhile, this study also found that the implementation of quality management practices
could enhancement the organizational performance.