Enhancing firm performance through Total Quality Management practices
Nurullaily Kartika (a*) Faradilah Hanum (b)
a) b) Faculty of Economics and Business
Airlangga University
nurullaily[at]feb.unair.ac.id
Abstract
The need of performance improvement is required due to radical changes in the business competition. TQM has been recognized as a competitive advantage for an firm-s success. TQM and improved firm performance has been the subject in various literature. This paper focuses on gaining insight into the impact of TQM on the firm performance. Success of TQM implementations appears that TQM implementation improved firm performance. The objectives of this study are to investigate the relationship between TQM practice and firm performance. The study obtained 300 questionnaires and tested the model and hypotheses using structural equation modeling. Results of the study support the hypotheses that there is positive relationship between TQM and employee performance, and there is positive relationship between TQM and operational performance. The implications of the study for managers and researchers, as well as study limitations, are also discussed.
Keywords: Total Quality Management, employee performance, operational performance, firm performance
Topic: Operation Management