Synergy Relationship between TQM and Knowledge Management to Create Customer Value Perceptions

Abstract

Total quality management (TQM) has been trusted by many quality-oriented companies in the world in order to improve performance in terms of customer value.n However, studies on the implementation of TQM and knowledge management in relation to customer value are still very few. The main aim of this research is to understand how customer's perceived value is influenced by TQM and knowledge management. A literature review was conducted to identify key TQM and knowledge management practices and the concept of customer value. This study adopted a cross-sectional design with a quantitative approach to test the research model. Data was collected using the survey method by distributing questionnaires online and sent using their respective e-mail addresses and using the business WA group. Based on a survey of service sector business actors, the PLS estimation approach is used to achieve research objectives and test hypotheses. The empirical results show that TQM has a positive signaling effect on knowledge management and customer value perceptions. In addition, it was found that knowledge management has a significant effect on customer value perceptions. This study was limited to the food service sector in Bali, Indonesia and a cross-sectional design was used to examine the hypothesized relationships at one point in time. The research model developed can add insight to knowledge by practitioners and policy makers and the basis for making critical policies in the future. The paper addresses the gap in the literature by analyzing the relationship between TQM and knowledge management in the process of strengthening customer value perceptions.