•  
  •  
 

Abstract

This study aims to analyse the effect of Soft Total Quality Management (Soft TQM) on SME performance in Jakarta, both from financial and non-financial perspectives. We used a balanced scorecard (BSC) approach and collected 135 datasets through online surveys to the business owners/manager. Data analysis was carried out by Structural Equation Modelling (SEM) method. The results of the data analysis showed that soft TQM has a negative and not significant effect on SMEs financial perspective, however there is a positive and significant effect on SMEs non-financial perspective. This study also discovered that innovation and leaning perspective mediates the impact of soft TQM on financial perspective in a positive and significant way.

References

[1] Talapatra, S., Uddin, M. K., Antony, J., Gupta, S., & Cudney, E. A. An empirical study to investigate the effects of critical factors on TQM implementation in the garment industry in Bangladesh. International Journal of Quality and Reliability Management 2019; 37(9–10): 1209–1232. https://doi.org/10.1108/IJQRM-06-2018-0145

[2] Goetsch, D. L., & Davis, S. (2013). Quality Management for Organizational Excellence: Introduction to Total Quality. Pearson Education, Inc.

[3] Albuhisi, A. M., & Abdallah, A. B. The impact of soft TQM on financial performance: The mediating roles of non-financial balanced scorecard perspectives. International Journal of Quality and Reliability Management 2018; 35(7): 1360–1379. https://doi.org/10.1108/IJQRM-03-2017-0036

[4] Adem, M. K., & Virdi, S. S. The effect of TQM practices on operational performance: an empirical analysis of ISO 9001: 2008 certified manufacturing organizations in Ethiopia. The TQM Journal 2020. https://doi.org/10.1108/TQM-03-2019-0076

[5] Georgiev, S., & Ohtaki, S. (2019). Critical success factors for TQM implementation among manufacturing SMEs: Evidence from Japan. Benchmarking 2019; 27(2): 473–498. https://doi.org/10.1108/BIJ-01-2019-0037

[6] Rahman, S., & Bullock, P. Soft TQM, hard TQM, and organisational performance relationships: an empirical investigation. The International Journal of Management Science 2006; 33: 73–83. https://doi.org/10.1016/j.omega.2004.03.008

[7] Sciarelli, M., Gheith, M. H., & Tani, M. The relationship between soft and hard quality management practices, innovation and organizational performance in higher education. The TQM Journal 2020; 32(6):1349–1372. https://doi.org/10.1108/TQM-01-2020-0014

[8] Zeng, J., Anh, C., & Matsui, Y. The impact of hard and soft quality management on quality and innovation performance: An empirical study $. Intern. Journal of Production Economics 2015; 162: 216–226. https://doi.org/10.1016/j.ijpe.2014.07.006

[9] Zeng, J., Zhang, W., Matsui, Y., & Zhao, X. (2017). The impact of organizational context on hard and soft quality management and innovation performance. International Journal of Production Economics 2017; 185: 240–251. https://doi.org/10.1016/j.ijpe.2016.12.031

[10] Kaplan, R. S., & Norton, D. P. The balanced scorecard: Measures That drive performance. Harvard Business Review 2005; 83(7–8).

[11] Hoque, Z. Total quality management and the balanced scorecard approach: A critical analysis of their potential relationships and directions for research. Critical Perspectives on Accounting 2003; 14(5): 553–566. https://doi.org/10.1016/S1045-2354(02)00160-0

[12] Sipayung, F. (2009). Jurnal Manajemen Bisnis. Jurnal Manajemen Bisnis, 2(1), 7–14.

[13] Triono, R.A., Dalimunthe, Z., & Arif, H. (2018). Can Traditional Retailers Use Strategy to Fight against Modern Attack? Afebi Management and Business Review 3(1). 1-15. http://dx.doi.org/10.47312/ambr.v3i1.128

14] Fajarini, C., Dalimunthe, Z. & Haikal, S. What Information Needed to Present in a Fundraising Campaign through Equity Crowdfunding. Indonesian Capital Market Review 2021; 13(2), 94-103. https://doi.org/10.21002/icmr.v13i2.13357

[15] Hilman, H., Ali, G. A., & Gorondutse, A. H. The relationship between TQM and SMEs’ performance: The mediating role of organizational culture. International Journal of Productivity and Performance Management 2019; 69(1): 61–84. https://doi.org/10.1108/IJPPM-02-2019-0059

[16] Hakim, A. & Dalimunthe, Z. The Probability of Financing Sustainability of Micro firms Financially Supported by Islamic Social Fund. Etikonomi 2022; 21(1); 127-138. https://doi.org/10.15408/etk.v21i1.12316.

[17] Herzallah, A. M., Gutiérrez-Gutiérrez, L., & Munoz Rosas, J. F. Total quality management practices, competitive strategies and financial performance: The case of the Palestinian industrial SMEs. Total Quality Management and Business Excellence 2014; 25(5–6): 635–649. https://doi.org/10.1080/14783363.2013.824714

[18] Ahmed, S., Manaf, N. H. A., & Islam, R. Assessing top management commitment, workforce management, and quality performance of Malaysian hospitals. International Journal of Healthcare Management 2019; 14(1): 236–244. https://doi.org/10.1080/20479700.2019.1645380

[19] Aletaiby, A. A., Rathnasinghe, A. P., & Kulatunga, P. Influence of top management commitment towards the effective implementation of TQM in Iraqi oil companies. Journal of Petroleum Exploration and Production 2021; 11(4): 2039–2053. https://doi.org/10.1007/s13202-021-01131-3

[20] Bakotić, D., & Rogošić, A. Employee involvement as a key determinant of core quality management practices. Total Quality Management and Business Excellence 2017; 28(11–12): 1209–1226. https://doi.org/10.1080/14783363.2015.1094369

[21] Fauzan, D., Triono, R., & Dalimunthe, Z. How Does Public Service Motivation Explain Knowledge Sharing Behavior among Indonesian Civil Servants? Jurnal Bina Praja: Journal of Home Affairs Governance 2022; 14(1): 71-82. https://doi.org/10.21787/jbp.14.2022.71-82

[22] Aquilani, B., Silvestri, C., Ruggieri, A., & Gatti, C. A systematic literature review on total quality management critical success factors and the identification of new avenues of research. TQM Journal 2017; 29(1): 184–213. https://doi.org/10.1108/TQM-01-2016-0003

[23] Kaplan, R. S., & Norton, D. P. (2000). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press.

[24] Sahoo, S., & Yadav, S. Total Quality Management in Indian Manufacturing SMEs. Procedia Manufacturing 2018; 21: 541–548. https://doi.org/10.1016/j.promfg.2018.02.155

[25] Kaur, M., Singh, K., & Singh, D. Synergetic success factors of total quality management (TQM) and supply chain management (SCM): A literature review. International Journal of Quality and Reliability Management 2019; 36(6): 842–863. https://doi.org/10.1108/IJQRM-11-2017-0228

[26] Anil, A. P., & Satish, K. P. Investigating the relationship between TQM practices and Firm ’s performance: A conceptual framework for Indian organizations. Procedia Technology 2016; 24: 554–561. https://doi.org/10.1016/j.protcy.2016.05.103

[27] Gadenne, D., & Sharma, B. An investigation of the hard and soft quality management factors of Australian SMEs and their association with firm performance 2009; 26(9): 865–880. https://doi.org/10.1108/02656710910995064

[28] Zahoor, A., & Sahaf, M. A. Investigating causal linkages in the balanced scorecard: an Indian perspective. International Journal of Bank Marketing 2018; 36(1): 184–207. https://doi.org/10.1108/IJBM-09-2016-0128

[29] Abdallah, A. B. The Influence of “Soft” and “Hard” Total Quality Management (TQM) Practices on Total Productive Maintenance (TPM) in Jordanian Manufacturing Companies. International Journal of Business and Management 2013; 8(21): 1–13. https://doi.org/10.5539/ijbm.v8n21p1

[30] Fotopoulos, C. B., & Psomas, E. L. (2009). The impact of “soft” and “hard” TQM elements on quality management results. International Journal of Quality & Reliability Management 2009; 26 (2): 150-`63. https://doi.org/10.1108/02656710910928798

[31] Kim, D. Y., Kumar, V., & Kumar, U. Relationship between quality management practices and innovation. Journal of Operations Management 2012; 30(4): 295–315. https://doi.org/10.1016/j.jom.2012.02.003

32] López, S. P., Peón, J. M. M., & Ordás, C. J. V. Human resource management as a determining factor in organizational learning. Management Learning 2006; 37(2): 215–239. https://doi.org/10.1177/1350507606063443

[33] Gambi, L. D. N., Lizarelli, F. L., Junior, A. R. R., & Boer, H. The impact of quality management practices on innovation: an empirical research study of Brazilian manufacturing companies. Benchmarking 2020. https://doi.org/10.1108/BIJ-04-2020-0168

[34] Kumar, V., Choisne, F., De Grosbois, D., & Kumar, U. Impact of TQM on company’s performance. International Journal of Quality and Reliability Management 2009; 26(1): 23–37. https://doi.org/10.1108/02656710910924152

[35] How, S. M., & Lee, C. G. Customer satisfaction and financial performance-linear or non-linear relationship: a case study of Marriot International. Current Issues in Tourism 2021; 24(9): 1184–1189. https://doi.org/10.1080/13683500.2020.1735319

[36] Anderson, E. W., Fornell, C., & Mazvancheryl, S. K. Customer satisfaction and shareholder value. Journal of Marketing 2004; 68(4): 172–185. https://doi.org/10.1509/jmkg.68.4.172.42723

[37] Chi, C. G., & Gursoy, D. Employee satisfaction, customer satisfaction, and financial performance: An empirical examination. International Journal of Hospitality Management 2009; 28(2): 245–253. https://doi.org/10.1016/j.ijhm.2008.08.003

[38] Otto, A. S., Szymanski, D. M., & Varadarajan, R. Customer satisfaction and firm performance: insights from over a quarter century of empirical research. Journal of the Academy of Marketing Science 2020; 48(3): 543–564. https://doi.org/10.1007/s11747-019-00657-7

[39] Škrinjar, R., Bosilj-Vukšić, V., & Indihar-Štemberger, M. The impact of business process orientation on financial and non-financial performance. Business Process Management Journal 2008; 14(5): 738–754. https://doi.org/10.1108/14637150810903084

[40] Mehralian, G., Nazari, J. A., Nooriparto, G., & Rasekh, H. R. TQM and organizational performance using the balanced scorecard approach. International Journal of Productivity and Performance Management 2017; 66(1): 111–125. https://doi.org/10.1108/IJPPM-08-

Bahasa Abstract

Penelitian ini bertujuan untuk menganalisis pengaruh Soft Total Quality Management (Soft TQM) terhadap kinerja UKM di Jakarta, baik dari segi finansial maupun non finansial. Kami menggunakan pendekatan balanced scorecard (BSC) dan mengumpulkan 135 dataset melalui survei online secara langsung kepada para pemilik/manajer bisnis. Analisis data dilakukan dengan metode Structural Equation Modeling (SEM). Hasil penelitian dari analisis data diperlihatkan bahwa soft TQM berpengaruh negatif dan tidak signifikan terhadap perspektif finansial pada UKM, namun berpengaruh positif dan signifikan terhadap perspektif non-finansial UKM. Penelitian ini juga menemukan hasil bahwa perspektif inovasi dan pembelajaran memediasi pengaruh soft TQM terhadap perspektif finansial secara positif dan signifikan.

Download

Share

COinS