DAMPAK KARAKTERISTIK LINGKUNGAN DALAM PENERAPAN TOTAL QUALITY MANAGEMENT(TQM) DAN PENGARUHNYA TERHADAP KINERJA PERUSAHAAN (Studi pada Perusahaan Jasa di Pekanbaru)

Abstract

Nowadays, the quality of products has become one of the critical subjects in organizations to satisfy customers and gaining profit. In this respect, Total Quality Management (TQM) is recognized as one of the popular and effective systems in organizations. Nonetheless, most research has focused on analyzing the relationships between the implementation of different elements and several types of performance. This paper incorporates the effect of organizational environment as a variable for explaining the impact of TQM on financial performance. The model is tested using structural equations model with PLS (partial Least Square), employing a survey of managers in 58 services firms in Pekanbaru. The results show that dynamism, munificence and complexity have not impact on customer focus and people management^- Complexity has significant effect on leadership .furterher more impact TQM principles on performance show that customer focus has not significant but leadership has significant effect on performance.