Influence of TQM on increasing sustainable competitive advantage with transformational leadership as a mediation variable

Munawar Muchlish,Mazda Eko Sri Tjahyono

doi:10.20525/ijrbs.v10i8.1473

Abstract

The objective of this study was to determine and analyze the impact of TQM, Transformational Leadership (TL), and Executive Ability (EA) on improving sustainable competitive advantage (SCA) in MSMEs in Banten Province based on local leading potential. The method of distributing questionnaires is used in this study to collect primary data. This study's population consisted of all owners and managers of MSMEs in Banten Province. In contrast, the sample in this study is formed of the owners and managers of MSMEs of Local Leading Potential in Banten Province. Purposive sampling was being used in the study, as well as Warp PLS V. 7.0 and SPSS Version 25 test equipment. The findings of this study were as follows: (1) TQM had a significant positive effect on TL and SCA, but not on EA. (2) TL has a statistically significant positive effect on SCA and EA. (3) EA has a statistically significant positive effect on SCA. (4) TL mediates the effect of TQM on SCA and TQM on EA, and (5) EA does not mediate the effect of TQM on SCA. VAF (Variance Accounted For) has been used to calculate mediation effects.

Highlights

The economy of Banten Province has experienced a shift from the dominance of the agricultural sector to the industrial sector
The purpose of this research is to determine the relationship between Total Quality Management (TQM) and Sustainable Competitive Advantage, with Transformational Leadership serving as a moderating variable in SMEs based on local potential in Banten Province
Regarding the age of respondents with the majority age range being under the age of 30 years as 14 (24.6%), the age ranges from 30 to 45 years as many as 21 (36.8%), age range above 45 years as many as 22 (38.6 %)

Summary

Introduction

The economy of Banten Province has experienced a shift from the dominance of the agricultural sector to the industrial sector. For the agricultural and marine sectors to develop, one field that needs to be developed is the agro-industry. In Banten Province, the MSME sector has a major contribution to the Banten economy. Based on data from the Central Statistics Agency (BPS) in 2016, MSMEs contributed 57.65% of the Banten economy (GDP). This figure is the largest among other business units. To date, the development of SMEs, especially the SME sector based on local potential, in Banten Province is still lagging behind other provinces. Whereas the potential of local resources is very large and has a great opportunity to be developed because it will impact the development of other sectors such as tourism. (Rahayuningsih, 2018)

Objectives

Results

Discussion

Conclusion