The relationship between total quality management (TQM) and innovation is complex. Literature suggests that conflicting arguments exist and that the impact of TQM on innovation depends both on the specific quality management elements under consideration and on the type of innovation. In this research, our goal is to analyse at what extent the introduction of TQM is indeed supporting innovation in the Portuguese footwear industry. Since this is a mature industry, whose traditional competitive base is disappearing and where familiar to medium units dominate, our emphasis is on the study of the organisational requirements to adopt constant changes in process technology. This study is based on empirical data collected from a set of firms by means of a survey instrument, especially developed with this purpose, after an extended contact with the industry where case studies and interviews were conducted with carefully selected organisations and sector experts. Findings give support to the view that in fact TQM principles have a positive association with the adoption of technological innovation. Yet, both the prevalence of features of the mechanistic model and the lack of maturity of most initiatives in the Portuguese footwear firms restrains the role of TQM in supporting innovation. r

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The balanced scorecard was first devised by Kaplan and Norton (1992, Harvard Business Review, Jan.-Feb., pp. [71][72][73][74][75][76][77][78][79] as a nzeasurement franzework that was expected to overconze some of the dejiciencies of traditional perjormance systems. It gives a holistic view of the organization by sinzultaneously looking at four important perspectives financial, customer, internal processes, innovation and learning). Apart >om being a measurenlens framework, the balanced scorecard achieved recognition as a strategic management system. The new approach to pe$ormance measurement suggested in the balanced scorecard is consistent with the initiatives under way in many companies: cross-functional integration, continuous inlprovement, customer-supplier partnerships and team rather than individual accountability. In this sense, it fits well into the quality management philosophy, embracing some of the business excellence principles of Kanji's Business Excellence Model. Nevertheless, the balanced scorecard, as presented by Kaplan and Norton, is not without limitations. The causality links suggested among rhe four perspectives are particularly problematic and ambiguous. Additionally, it fails to recognize explicitly the contributions of important stakeholders, such as employees and suppliers. Taking into account the potentialities and linzitations of the traditional balanced scorecard, we propose the development of a new framework integrating the elements of Kanji's Business Excellence Model (Kanji, 1998, Total Quality Management, 9, pp. 633-643) and taking advantage of the strengths of its sound methodological support. The business scorecard may be improved by integrating the total quality nzanagement principles and critical success factors that constitute Kanji's Business Excellence Model. The Karljik Business Scorecard (KBS) we present in this paper is not only a conceptuczl model, but also a measurement model. Furthermore, Kanji's approach has the potential to give a deeper understanding of how achievenzents in the dzfferent areas feed each other to form a cycle of continuoi~s improvement. Finally, the implementation of K B S can help organizations to develop, cascade and implen~ent a strategy for business excellence.

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