Abstract
TQM concept is known as a significant driver of performance of large-scale companies. This study points out two perspectives namely direct and indirect influence associated with TQM. Specifically, it delves into the innovation and spiritual capital in improving the performance of Intako. Path analysis was carried out to shed lights on the correlation among the aforementioned aspects. There were 98 samples involved in the study. The research results confirm the influence of innovation and spiritual capital on TQM. Likewise, the same results are evident on the influence of innovation, spiritual capital, and TQM on company performance.
 Key word: Innovation, Spiritual Capital, Total Quality Management, Performance, Small-and-Medium Enterprises
Highlights
Total Quality Management (TQM) is a quality management practice widely operationalized by large-scale companies in maintaining and optimizing customer satisfaction by implementing continuous improvements in the company's internal dynamics to produce high-quality products
The results show that innovation has the power to mediate TQM on SME performance
The Influence of Innovation on TQM The analysis shows that innovation has a significant effect on TQM
Summary
Total Quality Management (TQM) is a quality management practice widely operationalized by large-scale companies in maintaining and optimizing customer satisfaction by implementing continuous improvements in the company's internal dynamics to produce high-quality products. TQM aims to maximize competitiveness, which is reflected on customer satisfaction, employee involvement, and continuous improvement in the quality of products, services, people, processes and the company's environment. Companies which implement TQM must find ways to best meet the needs and expectations of consumers. This creates an impetus for the company to be innovative in developing and launching products to meet the customers’ needs (Setiawan & Daromes, 2019). The aspects of innovation which reflect openness to new things have a positive effect on TQM in improving performance
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