Recently, enhancing innovation performance is considered as one of the main objectives of companies. To achieve that, several strategies are adopted and investigated. The Total Quality Management (TQM) practice is one of the effective strategies to enhance performance. However, the nature of this relationship between TQM and innovation performance is still inconsistent. Therefore, in order to extend our understanding regarding this relationship, this study aimed to investigate the interaction effect of the absorptive capacity. Results confirmed the positive effect of TQM and absorptive capacity on innovation performance. However, the moderating effect of the absorptive capacity on the relationship between TQM and innovation performance was not supported by this study. In the light of these results, several recommendations have been suggested.