The impact of total quality management adoption on small and medium enterprises’ financial performance

2011 ◽  
Vol 52 (2) ◽  
pp. 421-438 ◽  
Author(s):  
Ralph Kober ◽  
Thanesvary Subraamanniam ◽  
John Watson
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Financial Performance ◽  
Small And Medium Enterprises ◽  
Total Quality ◽  
Medium Enterprises ◽  
The Impact

Facilitating SMEs' profitability through total quality management: the roles of risk management, digitalization, stakeholder management and system deployment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kari Lepistö ◽  
Minna Saunila ◽  
Juhani Ukko
Keyword(s):  
Risk Management ◽  
Quality Management ◽  
Total Quality Management ◽  
Continuous Improvement ◽  
Small And Medium Enterprises ◽  
Stakeholder Management ◽  
Total Quality ◽  
Content Type ◽  
Medium Enterprises ◽  
The Impact

PurposeThis study investigates the effect of total quality management (TQM) on small and medium enterprises (SMEs) ' profitability by examining whether the new TQM dimensions of risk management, digitalization, stakeholder management and system deployment, facilitate the impact of traditional TQM dimensions on profitability.Design/methodology/approachA structured survey of 271 Finnish SMEs divided into industry companies and service companies was used.FindingsRisk management facilitates the relation between continuous improvement and company profitability. Digitalization does not facilitate the relation between TQM dimensions and company profitability. Stakeholder management facilitates the relation between management/leadership and company profitability, customer focus and company profitability and continuous improvement and company profitability. System deployment does not facilitate the relation between TQM dimensions and company profitability.Originality/valueMost prior studies are based on the traditional TQM classification. The TQM dimensions of this study are more comprehensive than previous studies and take into account the latest trends in business development. The findings of this study differ from most previous studies and provide a source of reflection for SME management on how TQM should be implemented so that it affects the company's profitability.

scholarly journals Total quality management practices in Indonesian local SME: Understanding the employees Role

2019 ◽  
Vol 10 (2) ◽  
pp. 129-136
Author(s):  
Safitri Lamsah ◽  
Zakky Zamrudi
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Organizational Performance ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Employee Performance ◽  
Total Quality ◽  
Total Respondent ◽  
Two Factors ◽  
Medium Enterprises

Abstract Understanding the schemes of Small and Medium Enterprises (SME’s) managerial capability is becoming important aspects today. Implementing proper strategies and internal policy may create a significant change in SME’s performance. Total Quality Management (TQM) has been being a one of specific measurement on organizational performance. This research was proposed to understand the factor that can affect the TQM’s performance in SME’s by identifying the two factors that can change it. Based on the recent studies, the developed model was employed PLSSEM to analyze the data by total respondent 95 respondent consist of owner and manager. The sample was taken in the area of Sasirangan SME’s in Banjarmasin, Kalimantan Selatan province, Indonesia. Sasirangan is a local fabric developed by its ancestor. The population of Sasirangan SME’s was huge in amount. The results of these studies indicate that both motivation and employee performance can increase the TQM in the SME’s which one of them has a more significant effect. The complete description of finding in this research will be discussed in this research.

scholarly journals INOVASI MEMEDIASI TQM DAN KINERJA PERUSAHAAN PADA SEKTOR UKM

2019 ◽  
Vol 3 (2) ◽  
pp. 155-163
Author(s):  
Yolanda Masnita (Universitas Trisakti - Indonesia) ◽  
Abdul Rahman (Universitas Trisakti - Indonesia) ◽  
Andhika Veraldy (Universitas Trisakti - Indonesia)
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Small And Medium Enterprises ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Company Performance ◽  
Total Quality ◽  
Food And Beverage ◽  
Convenience Sampling ◽  
Medium Enterprises

Abstract In strategy competition, innovation must be clear and precise in accordance with consumer demand and expectations. Limited organizational resources require organizations to manage innovation clearly. The company's efforts to change or increase product output, both from its processes and services, are interpreted as innovation. This study aims to examine the effect of total quality management on company performance with two approaches, additional innovation and radical innovation. The hypothesis was tested from data collected from 108 food and beverage SMEs registered at the Indonesian Food and Beverage Entrepreneurs Association - GAPMMI using convenience sampling data processed with AMOS. The results of the study show that additional innovation as a TQM mediator has an influence on company performance. In addition, testing shows that radical innovation has no effect on company performance. Therefore, additional innovation is the best way that SMEs can choose as a TQM approach to influence company performance. This research can contribute to small and medium enterprises in the selection of innovations in the practice of TQM. This will help entrepreneurs get better company performance Key words: total quality management; incremental innovation; radical innovation; firm performance; SMEs AbstrakDalam kompetisi strategi, inovasi harus jelas dan tepat sesuai dengan permintaan dan harapan konsumen. Terbatasnya sumber daya organisasi menuntut organisasi mengelola inovasi dengan jelas. Upaya perusahaan untuk mengubah atau meningkatkan output produk, baik dari proses dan layanannya, ditafsirkan sebagai inovasi. Penelitian ini bertujuan untuk meneliti pengaruh manajemen kualitas total terhadap kinerja perusahaan dengan dua pendekatan, inovasi tambahan dan inovasi radikal. Hipotesis diuji dari data yang dikumpulkan dari 108 UKM makanan dan minuman yang terdaftar di Gabungan Pengusaha Makanan dan Minuman Indonesia – GAPMMI dengan menggunakan convenience sampling data diolah dengan AMOS. Hasil penelitian menunjukkan bahwa inovasi tambahan sebagai mediator TQM, memiliki pengaruh terhadap kinerja perusahaan. Selain itu, pengujian menunjukkan bahwa inovasi radikal tidak berpengaruh pada kinerja perusahaan. Oleh karena itu, inovasi tambahan adalah cara terbaik yang dapat dipilih oleh UKM sebagai pendekatan TQM untuk mempengaruhi kinerja perusahaan. Penelitian ini dapat berkontribusi untuk usaha kecil dan menengah dalam pemilihan inovasi dalam praktik TQM. Hal ini akan membantu pengusaha mendapatkan kinerja perusahaan yang lebih baik Kata kunci: manajemen kualitas total; inovasi tambahan; inovasi radikal; kinerja perusahaan; UKM

scholarly journals Driving Force of TQM in Improving SME's Performance: The Roles of Innovation and Spiritual Capital

2020 ◽  
Vol 1 (1) ◽  
pp. 38
Author(s):  
Fikrotul Ulyah ◽  
Ahmad Toha ◽  
Sasongko Sasongko
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Driving Force ◽  
Large Scale ◽  
Small And Medium Enterprises ◽  
Company Performance ◽  
Total Quality ◽  
Spiritual Capital ◽  
Key Word ◽  
Medium Enterprises

TQM concept is known as a significant driver of performance of large-scale companies. This study points out two perspectives namely direct and indirect influence associated with TQM. Specifically, it delves into the innovation and spiritual capital in improving the performance of Intako. Path analysis was carried out to shed lights on the correlation among the aforementioned aspects. There were 98 samples involved in the study. The research results confirm the influence of innovation and spiritual capital on TQM. Likewise, the same results are evident on the influence of innovation, spiritual capital, and TQM on company performance. Key word: Innovation, Spiritual Capital, Total Quality Management, Performance, Small-and-Medium Enterprises

Strategic planning to investigate the decision index of organization for effective total quality management implementation – in context of Indian small and medium enterprises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lalit K. Toke ◽  
Shyamkumar D. Kalpande
Keyword(s):  
Quality Management ◽  
Total Quality Management ◽  
Present Status ◽  
Small And Medium Enterprises ◽  
External Environment ◽  
Total Quality ◽  
Situation Analysis ◽  
Internal Factors ◽  
Content Type ◽  
Medium Enterprises

Purpose The aim of this paper is to present an empirical assessment and strategic planning for measuring the impact of total quality management (TQM) practices on small and medium enterprises (SMEs) and its effectiveness for business excellence. The authors investigate the present status of quality system in SMEs and find the thrust areas for TQM implementation in SMEs of strengths, weaknesses, opportunities and threats analysis. Also, it examines the effect of external environment on internal factors of SMEs by situation analysis. This study helps to develop a model for assessing the components of TQM in SMEs after identifying their weightage. Design/methodology/approach The qualitative and quantitative techniques have been used together for robust conclusions. The survey data has been collected through the properly designed questionnaire. After studying the present status of TQM in SMEs, situation analysis has been carried out for examining the effect of the external environment on internal factors of SMEs. The weightage of TQM critical success factors was calculated by pair-wise comparison method of analytical hierarchical process (AHP) analysis for framework development. Findings The study offers useful insights and guidelines for identification of the contribution of TQM critical factors in SMEs performance. It has been observed that the attribute understanding of customer need and its fulfillment ability has the highest priority, whereas supplier partnership and the ability to reduce waste having the least priority in SMEs. Validation study facilitates to channelize TQM initiatives, to improve environmental and operational performance. Originality/value The authors provide a comprehensive typology of TQM practices, and its performances on SMEs. This paper can increase the awareness of the significance of TQM strategy which could help managers of SMEs to have a better understanding of the benefits of implementing TQM and therefore unable patient satisfaction with their organizations.

Sign in / Sign up

Export Citation Format

Share Document