Implementation of Total Quality Management (TQM), Organizational Culture and Performance: Evidence from Indonesian Micro, Small and Medium Enterprises (MSMEs)

Aziz, RZ Abdul and Maria, Delli and Rahayu, Sri (2020) Implementation of Total Quality Management (TQM), Organizational Culture and Performance: Evidence from Indonesian Micro, Small and Medium Enterprises (MSMEs). Darmajaya.

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Abstract

Abstract. Organizational performance is a description of a level of achievement of an implementation of an activity in actualizing goals and objectives of an organization contained in the strategic planning of an organization. The organizational performance can be seen from the extent to which the organization can achieve the goals. To measure this organizational performance, it can be used quantitative and qualitative approaches. Total quality management (TQM) and organizational culture include variables that affect an improvement of the organizational performance. TQM is a philosophy of quality management to improve all organizational performances based on leadership, customer focus, education and training, benchmarking, teamwork, continuous improvement processes, employee engagement, supplier quality management, recognition, and rewards. The organizational culture provides assertiveness and reflects specifications of an organization so that it differs from other organizations. The organizational culture encompasses all behavioral patterns of members of an organization and becomes a grip for each individual in interacting with both the internal and external environment within a Micro, Small and Medium Enterprises (MSMEs). Micro, Small and Medium Enterprises (SMEs) have a vital role in the growth and development of economy. Furthermore, MSMEs also exist not only in developing countries (Indonesia) but also in developed countries. Moreover, the role of MSMEs not only has a role in the growth and development of the economy, but also has a very important role in addressing unemployment problems. However, these situations are not supported by quality management as a factor to support a success in a MSMEs and the existence of an organizational culture which can help stand small and medium enterprises in a competition. The objective of this study was to determine the correlation and effect between the implementation of TQM and organizational culture on MSMEs’ organizational performance in Indonesia. The data analysing technique was descriptively carried out by multiple linear regression. The result of this study is expected to know the correlation and effect between implementation of TQM and organizational culture on organizational performance in Indonesia and to provide practical knowledge for Indonesian practitioners and academics to understand the eminence of the implementation of TQM and organizational culture on MSMEs’ performance. Keywords: Organizational Performance, TQM, Organizational Culture, MSMEs

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Artikel Ilmiah Dosen > Fakultas Ekonomi dan Bisnis
Depositing User:	mr R H
Date Deposited:	20 Nov 2020 07:10
Last Modified:	01 Jul 2021 03:35
URI:	http://repo.darmajaya.ac.id/id/eprint/2287

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