Purpose: Given the positive organizational principles associated with total quality management (TQM) – customer focus, continuous improvement, and process management – one would assume TQM's application is universally beneficial across businesses. Generally, research supports that notion. However, given resource limitations and shallow management teams in small businesses, there are multiple challenges in implementing TQM in small and medium-sized enterprises (SMEs). Therefore, small business leaders should benefit from knowledge linking other management practices to TQM’s positive effect on small firm performance, which enhances these leaders' return on TQM investment.Design/methodology/approach: The authors apply partial least squares structural equation modeling (PLS-SEM) to explore TQM’s effect on small business performance and how other management practices enhance that relationship. Specifically, the authors explore how a comprehensive strategic approach (CSA) – a higher-order construct consisting of strategic planning, goal setting, and financial ratio analysis – moderates the relationship between TQM and small business performance. Given the complexity of the authors' model, the application of higher-order constructs, and the exploratory nature of this work, PLS-SEM is well suited for this study.Findings: Consistent with prior research, the authors found that TQM (also a higher-order construct, consisting of seven lower-order constructs) positively impacts small firm performance. In addition, the authors found that CSA positively moderates the relationship between TQM and financial performance.Originality/value: TQM’s effect on small business performance is enhanced when leaders implement a CSA. In other words, when small business leaders strategically plan, set goals, and analyze financial ratios, TQM's positive effect on firm performance is enhanced. This finding provides business leaders insights for how to maximize the TQM investment return.

Dynamic capabilities enable businesses to build a sustainable competitive advantage (Teece, 2007). This study investigates whether supply chain sensing (SCS) and supply chain agility (SCA) form a dynamic sensing and agility capability (DSAC) that enhances firm performance. Most empirical research on dynamic capabilities examines large organizations; this study investigates dynamic capabilities in small to medium enterprises (SMEs). SMEs form a significant part of the world economy and often have limited resources compared to large organizations. We utilize a survey of 139 respondents from SMEs in a single industry – the printing industry. Our analysis, both an EFA and PLS-SEM, find that SCS and SCA are different constructs that combine to form a dynamic sensing and agility capability. We found that this dynamic sensing and agility capability positively affects firm performance but not supply chain impact.

The impact of marketing planning on SME (small and medium-sized enterprises) performance is established. However, little research has examined how marketing planning and sales management, together, influence SME performance. Our study addresses this literature gap: how do marketing planning and sales management interact to affect SME performance? We analyzed data from 135 small businesses. Marketing planning fully mediates the relationship between sales management and SME performance. This shows that without effective marketing planning, salesforce management alone will not likely enhance SME performance. Our findings imply that marketing planning is critical for SMEs to enhance performance when applying sales management. Marketing planning helps sales managers align their salesforce capabilities and efficiently manage their selling approach to improve business performance.