바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

ISSN : 1738-3110

Article Contents

Prev Next
Early Access e-Submission

Vol.18 No.1
Citation Share

Relationship of TQM on Managerial Perfomance: Evidence From Property Sector in Indonesia

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2020, v.18 no.1, pp.47-57
https://doi.org/https://doi.org/10.15722/jds.18.1.202001.47
FIRMAN, Ahmad
MUSTAPA, Zainuddin
ILYAS, Gunawan Bata
PUTRA, Aditya Halim Perdana Kusuma
FIRMAN,, A. , MUSTAPA,, Z. , ILYAS,, G. B. , & PUTRA,, A. H. P. K. (2020). Relationship of TQM on Managerial Perfomance: Evidence From Property Sector in Indonesia. The Journal of Distribution Science, 18(1), 47-57, https://doi.org/https://doi.org/10.15722/jds.18.1.202001.47
  • Downloaded
  • Viewed
PDF Download

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

1.

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

2.

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

3.

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

4.

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

5.

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

6.

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

7.

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

8.

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

9.

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

10.

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

11.

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

12.

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

13.

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

14.

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

15.

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

16.

Evans, J.R., & Lindsay, W.M.C. (2002). The management and control of quality (6th Edition). South-Western College Pub, ISBN: 9780324202236, 1-848

17.

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

18.

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

19.

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

20.

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

21.

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)

22.

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

23.

Jaworski, B.J., & Kohli, A.K.(1993). Market Orientation:Antecedents and Consequences. Journal of Marketing, 57(3), 53. https://doi.org/10.2307/1251854

24.

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

25.

Kanji, G.K. (1996). Can total quality management help innovation? Total Quality Management, 7(1), 3–10.

26.

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

27.

Kotler, P. (2012). Marketing management, 14th edition. Pearson Education.

28.

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

29.

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

30.

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

31.

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

32.

Madhani, P.M. (2009). Resource Based View (RBV) of Competitive Advantages: Importance, Issues and Implications. Indian Management Research Journal. 1(2) (pp.13-21)

33.

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

34.

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

35.

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

36.

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

37.

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).

38.

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

39.

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

40.

Tang, J. (2006). Competition and innovation behaviour. Research Policy. 35(1), (pp.68-82). https://doi.org/10.1016/j.respol.2005.08.004

41.

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

42.

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

43.

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

44.

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

The Journal of Distribution Science

Early Access e-Submission OA Policy