Abstract
The concept of “total quality management (TQM)” is broadly used in business. Regardless of the fact that several studies have analyzed this topic, little research has been conducted on integrating total quality management and supply chain management (SCM) practices in business organizations. The role of innovation capabilities is considered to be highly valuable, because they are considered feasible approaches, which can be applied by top management to enhance organizational effectiveness and productivity. This study aims to develop a new business model that integrates the most important practices between total quality management and supply chain management, while emphasizing the role of innovation capabilities. This paper also suggests possibilities toward a new approach with regard to minimizing the cost and improving operational performance. Furthermore, it proposes a conceptual framework that shows the major variables in explaining the new business model of integration practices between TQM and SCM, and addressing the role of innovation capabilities to handle this model.

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