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Total Quality Management (TQM) is increasingly adopted by higher education institutions (HEIs) to enhance institutional effectiveness under growing performance and accountability pressures. However, empirical evidence remains limited regarding the mechanisms through which TQM practices influence non-financial and financial performance outcomes. This study examines the mediating roles of Hard Quality Management practices and Non-Financial Performance in the relationship between Soft Quality Management practices and Financial Performance in higher education institutions. A quantitative research design was employed using survey data collected from academic and administrative staff across public and private HEIs. The hypothesised direct and indirect relationships were tested using mediation analysis implemented through Hayes’ PROCESS macro, enabling a robust examination of multiple mediation pathways. The results indicate that Soft Quality Management practices significantly enhance both Hard Quality Management practices and Non-Financial Performance. Hard Quality Management practices partially mediate the relationships between Soft Quality Management practices and both Non-Financial and Financial Performance, while Non-Financial Performance also serves as a significant mediator linking Soft Quality Management practices to Financial Performance. The persistence of significant direct effects suggests partial mediation, indicating that Soft Quality Management practices operate through both formalised systems and complementary behavioural and cultural mechanisms. Overall, the findings position TQM as a governance-oriented framework that strengthens institutional performance through interconnected quality pathways in higher education institutions.