The Influence of TQM on Business Performance: A Study Of Manufacturing Companies In Indonesia  

Oleh:

Harsasi, Meirani ; Muzammil, Mohammad

Jenis: Article from Proceeding
Dalam koleksi: SIBR-Thammasat 2014 Conference on Interdisciplinary Business & Economics Research June 5th- 7th, 2014 di Emerald Hotel Bangkok, page 1-4.
Topik: TQM; business performance; manufacturing companies
Fulltext: b14-153.pdf (59.04KB)

Isi artikel

Total Quality Management (TQM) is one of the topics in the field of operations management and is often associated with firm performance. In relation to performance, some previous studies showed different results. Several studies have shown the strong influence of the application of TQM on performance, but a few others showed the opposite result. This research was designed as a causal research with the aim of the research was to analyze the influence of the application of TQM on business performance in manufacturing companies in Indonesia. This research involved two variables: TQM (leadership, strategic planning, customer focus, information and analysis, workforce management, process management) and performance (financial and marketing). The data was collected from respondents through a mail survey. As many as 1,253 copies of questionnaires were distributed and a total of 155 questionnaires were returned and usable. All manufacturing companies that have participated and taken as a sample in this study were large-scale manufacturing companies with the criteria of having at least 100 workforces. The statistical test of the data was done in 3 stages: the validity test, reliability test, and multiple linear regressions. The results of validity test indicated that there were three questions that must be removed from the analysis because it’s not clustered on the factors that should be. While the reliability test results indicated that all variables are reliable. The results of hypothesis testing using multiple linear regressions showed that together all the independent variables have a significant influence on the dependent variable at the level of a = 0.05. This means that all the elements of TQM has a positive influence on firm performance. This proved that a good and right implementation of TQM can improve the company performance in terms of financial and marketing.

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