- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Relationship of TQM on Managerial Perfomance: Evidence From Property Sector in Indonesia
MUSTAPA, Zainuddin
ILYAS, Gunawan Bata
PUTRA, Aditya Halim Perdana Kusuma
Abstract
Purpose: This study seeks to bridge between the research by Lawrence (1999) and Retegan (1992), where the focus of TQM on his studies rests on customer satisfaction. Whereas in this study trying to recompile TQM by involving the variables Innovation and competitive advantage to stimulate managerial performance improvement where performance measurements include various measurements such as financial performance, marketing performance, and production performance in the property industry. Research design, data, and methodology: Total sample are 105 respondents coming from middle to top level of management in the property sector in Indonesia. To empirically prove the results of this study using multiply regression analysis as a test tool for analysis. Results and Findings: The results of this study confirm that TQM has a positive effect on market competition, innovation, and company performance indirectly. However, it does not have a significant impact if it is directly related to TQM on company performance. In this case, TQM for property companies in Indonesia would not have been possible without the role of innovation and market competition. So that the managerial implications of this study also confirm that TQM is essential and feels obligatory to be implemented optimally.
- keywords
- TQM, Innovation, Competitive Advantage, Market Competition
Reference
Agus, A., & Hassan, Z. (2011). Enhancing Production Performance and Customer Performance Through Total Quality Management (TQM): Strategies For Competitive Advantage. Procedia - Social and Behavioral Sciences, 24(1), (pp.1650–1662). https://doi.org/https://doi.org/10.1016/j.sbspro.2011.09.019
Al-Naser, K., & Mohamed, R. (2017). The Integration between Strategic Cost Management Techniques to Improve the Performance of Iraqi Manufacturing Companies. Asian Journal of Finance & Accounting, 9(1), (pp.210–223). https://doi.org/10.5296/ajfa.v9i1.11003
Alam, R., Hamzah, N., Putra, A. H. P. K., Ginting, W. A., & Teng, S. H. (2019). What Is More Important In Business? The Fallacy In Interpreting Innovation As a Strategy. 1st International Conference on Life, Innovation, Change and Knowledge (ICLICK 2018). Atlantis Press. https://doi.org/10.2991/iclick-18.2019.59
Amin, M., Aldakhil, A. M., Wu, C., Rezaei, S., & Cobanoglu, C. (2017). The structural relationship between TQM, employee satisfaction and hotel performance. International Journal of Contemporary Hospitality Management, 29(4), (pp.1256–1278). https://doi.org/10.1108/IJCHM-11-2015-0659
Anderson, M., & Sohal, A. S. (1999). A study of the relationship between quality management practices and performance in small businesses. International Journal of Quality & Reliability Management, 16(9), (pp.859–877). https://doi.org/10.1108/02656719910289168
Aquilani, B., Silvestri, C., Ruggieri, A., & Gatti, C. (2017). A systematic literature review on total quality management critical success factors and the identification of new avenues of research. The TQM Journal, 29(1), (pp.184–213). https://doi.org/10.1108/TQM-01-2016-0003
Arfah, A., & Putra, A. H. P. K. (2019). Analysis of Productivity and Distribution of Female Workers in FB’s Industries. Journal of Distribution Science, 17(3),(pp.31–39). https://doi.org/10.15722/jds.17.3.201903.31
Baldwin, J. R., & Johnson, J. (1996). Business strategies in more-and less-innovative firms in Canada. Research Policy, 25(5), (pp.785–804). https://doi.org/10.1016/0048- 7333 (95) 00875-6
Bouranta, N., Psomas, E. L., & Pantouvakis, A. (2017). Identifying the critical determinants of TQM and their impact on company performance: Evidence from the hotel industry of Greece. The TQM Journal, 29(1),(pp.147–166). https://doi.org/10.1108/TQM-11-2015-0142
Brah, S. A., Tee, S. S. L., & Madhu Rao, B. (2002). Relationship between TQM and performance of Singapore companies. International Journal of Quality & Reliability Management, 19(4), (pp.356–379). https://doi.org/10.1108/02656710210421553
Camison, H.,S., Clemente, A.J. A., & Gonzalez,C.T. (2018). How technology-based firms become also highly innovative firms? The role of knowledge, technological and managerial capabilities, and entrepreneurs’background. Suma de Negocios, 4(3) (pp.162-170).https://doi.org/10.1016/j.jik.2018.12.001
Chong, V. K., & Rundus, M. J. (2004). Total quality management, market competition and organizational performance. The British Accounting Review, 36(2), (pp.155–172).https://doi.org/https://doi.org/10.1016/j.bar.2003.10.006
Corredor, P., & Goñi, S. (2011). TQM and performance: Is the relationship so obvious? Journal of Business Research, 64(8), (pp.830–838). https://doi.org/https://doi.org/10.1016/j.jbusres.2010.10. 002
Dereli, D.D. (2015). Innovation Management in Global Competition and Competitive Advantage. Procedia -Social and Behavioral Sciences, 195 (7), (pp.1365–1370). https://doi.org/10.1016/j.sbspro.2015.06.323
Distanont, A, & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, Article In Press (xxx) (pp.1-7). https://doi.org/10.1016/j.kjss.2018.07.009
Evans, J.R., & Lindsay, W.M.C. (2002). The management and control of quality (6th Edition). South-Western College Pub, ISBN: 9780324202236, 1-848
Grover, S., Agrawal, V.P., & Khan (2004). A digraph approach to TQM evaluation of an industry. International Journal of Production Research, 42(19), (pp.4031–4053). https://doi.org/10.1080/00207540410001704032
Gupta, K., & Krishnamurti, C. (2016). Chapter 19 - Product Market Competition and Corporate Environmental Performance. Handbook of Environmental and Sustainable Finance, (Chapter Book), (pp.385-404). https://doi.org/10.1016/B978-0-12-803615-0.00019-4
Hackman, J. R., & Wageman, R. (1995). Total quality management: Empirical, conceptual, and practical issues. Administrative Science Quarterly, 40(2), (pp.309–342). https://doi.org/10.2307/2393640
Hoang, T.D., Igel, B., & Laosirihongthong, T. (2006). The impact of total quality management on innovation:Findings from a developing country. International Journal of Quality & Reliability Management, 23(9), (pp.1092–1117). https://doi.org/10.1108/02656710610704230
Hussain, J., Rahman, W., & Shah, A.F. (2016). Market Orientation and Performance: The Interaction Effect of Entrepreneurial Orientation. Pakistan Journal of Commerce and Social Sciences. 10(2), (pp.388-403)
Iqbal, T., Huq, F., & Bhutta, M.K.S. (2018). Agile manufacturing relationship building with TQM, JIT, and firm performance: An exploratory study in apparel export industry of Pakistan. International Journal of Production Economics, 203(9), (pp.24–37).https://doi.org/10.1016/j.ijpe.2018.05.033
Jaworski, B.J., & Kohli, A.K.(1993). Market Orientation:Antecedents and Consequences. Journal of Marketing, 57(3), 53. https://doi.org/10.2307/1251854
Kanji, G.K. (1990). Total quality management: the second industrial revolution. Total Quality Management, 1(1), (pp.3–12). https://doi.org/10.1080/09544129000000001
Kanji, G.K. (1996). Can total quality management help innovation? Total Quality Management, 7(1), 3–10.
Kaufman, B.E. (2015). Market competition, HRM, and firm performance: The conventional paradigm critiqued and reformulated. Human Resource Management Review, 25(1), (pp.107–125). https://doi.org/https://doi.org/10.1016/j.hrmr.2014.08.001
Kotler, P. (2012). Marketing management, 14th edition. Pearson Education.
Kristianto, I., & Tarigan, Z. J. H. (2019). The impact TQM System on Supply Chain Performance through Supply Chain Integration and Employee Satisfaction. Petra International Journal of Business Studies, 2(1), (pp.8–17). https://doi.org/10.9744/ijbs.2.1.8-17
Kumar, V., Choisne, F., Grosbois, D.,& Kumar, U. (2009). Impact of TQM on company’s performance. International Journal of Quality & Reliability Management, 26(1), (pp.23–37). https://doi.org/10.1108/02656710910924152
Laitinen, E.K., Länsiluoto, A., & Salonen, S. (2016). Interactive budgeting, product innovation, and firm performance: empirical evidence from Finnish firms. Journal of Management Control, 27(4), (pp.293–322). https://doi.org/10.1007/s00187-016-0237-2
Lawrence, C. & Poh, L.K (1999). Implementing quality in property management: The case of Singapore. Property Management, 17(4), (pp.310–320). https://doi.org/10.1108/02637479910299624
Madhani, P.M. (2009). Resource Based View (RBV) of Competitive Advantages: Importance, Issues and Implications. Indian Management Research Journal. 1(2) (pp.13-21)
Mansur, D. M., Sule, E. T., Kartini, D., Oesman, Y. M.,Putra, A. H. P. K., & Chamidah, N. (2019). Moderating of the role of technology theory to the existence of consumer behavior on e-commerce. Journal of Distribution Science, 17(7), (pp.15–25).http://dx.doi.org/10.15722/jds.17.07.201907.15
Meiyani, E., & Putra, A. H. P. K. (2019). The relationship between islamic leadership on employee engagement distribution in FMCG industry: Anthropology business review. Journal of Distribution Science, 17(5), (pp.19–28). http://dx.doi.org/10.15722/jds.17.05.201905.19
Narver, J.C., & Slater, S.F. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4), (pp.20–35). https://doi.org/10.2307/1251757
Powell, T. C. (1995). Total quality management as competitive advantage: a review and empirical study. Strategic Management Journal, 16(1), (pp.15–37). https://doi.org/10.1002/smj.4250160105
Raja, M.W., & Wei, S. (2014). TQM Practices and Innovation Performance : A Review of Current Literature. British Journal of Economics, Management & Trade, 4(7), (pp.1018–1032).
Ramlawati, R., & Putra, A.H.P.K. (2018). Total Quality Management as the Key of the Company to Gain the Competitiveness, Performance Achievement and Consumer Satisfaction. International Review of Management and Marketing, 8(5), (pp.60–69). https://doi.org/10.32479/irmm.6932
Reed, R., Lemak, D. J., & Mero, N. P. (2000). Total quality management and sustainable competitive advantage. Journal of Quality Management, 5(1), (pp.5–26). https://doi.org/https://doi.org/10.1016/S1084-8568(00)00010-9
Tang, J. (2006). Competition and innovation behaviour. Research Policy. 35(1), (pp.68-82). https://doi.org/10.1016/j.respol.2005.08.004
Teece, D.J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal. 18(7), (pp.509-533).https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Terziovski, M., & Samson, D. (1999). The link between total quality management practice and organisational performance. International Journal of Quality &Reliability Management, 16(3), (pp.226-237). https://doi.org/10.1108/02656719910223728
Wiklund, H., Klefsjö, B., Wiklund, S.P., & Edvardsson, B.(2003). Innovation and TQM in Swedish higher education institutions–possibilities and pitfalls. The TQM Magazine, 15(2), (pp.99–107). https://doi.org/10.1108/09544780310461116
Yusr, M.M. (2016). Innovation capability and its role in enhancing the relationship between TQM practices and innovation performance. Journal of Open Innovation:Technology, Market, and Complexity, 2(1), (pp.2-6). https://doi.org/10.1186/s40852-016-0031-2
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations