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The literature emphasises the need to integrate innovation initiatives under the umbrella of the total quality management (TQM) philosophy. Such integration is instrumental towards achieving and sustaining a superior organisational performance. Using a sample of 229 Portuguese manufacturing organisations, factor and regression analyses procedures were used to assess the impact on organisational performance of innovation for small and large organisations in the Portuguese TQM business context. The results of this study point to the significance of the size of the organisation, and product and process innovations for organisational performance. Organisational innovation was not found to have a significant impact on organisational performance. These results might be attributed to specific ownership, which is associated with process and product innovation. Based on the results of this study, it is concluded that small organisations might want to consider directing their innovation investments towards management aspects such as processes and products. In this context, top-down organisational innovation might take more time and effort.
