Abstract
This study aims to analyze the influence of Total Quality Management (TQM) implementation to competitive advantage and company’s performance, especially to small and medium manufacturing company. Using Partial Least Square (PLS) tested the hypothesis of Structural Equation Modelling (SEM). There is significant influence between TQM implementation to competitive advantage. Likewise with a competitive advantage to the company's performance there is significant influence. But there is no significant influence directly between TQM to the company's performance. The study discusses about the implementation of TQM in small and medium manufacturing companies. In the practice, implementation of TQM in small and medium manufacturing companies are not as smooth as the large manufacturing company. DOI: 10.15408/ess.v8i1.5852
Highlights
This study aims to analyze the influence of Total Quality Management (TQM) implementation to competitive advantage and performance, especially to small and medium manufacturing company (SMMC) in Bekasi West Java and Jakarta
Respondents from Reka Indonesia Services (RIS), consisted of 50% of employees who have worked for 1-5 years, 37% worked for 6-10 years, 6% worked for 11-15 years, 5% worked for 21-25 years and 2% worked for 15-20 years
The research concludes that TQM implementation can improve the competitive advantage of SME
Summary
By implementing the ten components of TQM, the company can obtain the profit, good operational management, and good competitiveness. They found that TQM implementation in small & medium enterprises in Surabaya can increase the company’s competitive advantage. Mustapha et al (2011) conducted a research on the level of awareness and TQM implementation in small and medium sized manufacturing companies in Malaysia. Deros et al (2009) conducts research on the important role of senior managers in Small & Medium Enterprises (automotive components manufacturing sector) in Malaysia. This study aims to analyze the influence of TQM implementation to competitive advantage and performance, especially to small and medium manufacturing company (SMMC) in Bekasi West Java and Jakarta
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