The Influence of Total Quality Management, Product Innovation and Process Innovation on the Performance of Recycling-Based SMEs in Sleman Regency
DOI:
https://doi.org/10.31315/jubir.v3i1.12058Abstract
TQM has been proposed as a global advanced strategy to achieve quality goods and services that result in superior operational performance of SMEs. This study aims at the effect of TQM on product innovation, process innovation, and operational performance of SMEs and examines the effect of product innovation and process innovation on SME performance. Tests were also conducted to examine the influence of product innovation mediation variables and innovation processes on the relationship between TQM and SME operational performance. The study approach was carried out by collecting data through questionnaires through surveys. The respondents in this research were recycling-based SMEs in Sleman Regency, totaling 80 SMEs. The data analysis technique uses Partial Least Square (PLS). The results of this study indicate that TQM has a positive and significant effect on product innovation, process innovation, and operational performance of SMEs and product innovation and process innovation also has a positive and significant effect on SME performance. In addition, product innovation and process innovation positively and significantly mediate the relationship between TQM and SME operations. The results of this study have a theoretical contribution for future researchers and a practical contribution for business people, especially SMEs in order to continue to improve their operational performance.
References
Abdallah, A. B., & Al-Ghwayeen, W. S. (2020). Green supply chain management and business performance: The mediating roles of environmental and operational performances. Business Process Management Journal, 26(2), 489-512.
Anifowose, O. N., Ghasemi, M., & Olaleye, B. R. (2022). Total Quality Management and Small and Medium-Sized Enterprises’(SMEs) Performance: Mediating Role of Innovation Speed. Sustainability, 14(14), 1-19.
Antunes, M. G., Mucharreira, P. R., Justino, M. R. T., & Texeira-Quirós, J. (2021). Effects of Total Quality Management (TQM) dimensions on innovation—evidence from SMEs. Sustainability, 13(18), 10095.
Bazrkar, A., Aramoon, E., Hajimohammadi, M., & Aramoon, V. (2022). Improve Organizational Performance by Implementing the Dimensions of Total Quality Management With Respect to the Mediating Role of Organizational Innovation Capability. Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 32(4), 38-57.
Belén Escrig‐Tena, A. (2004). TQM as a competitive factor: A theoretical and empirical analysis. International Journal of Quality & Reliability Management, 21(6), 612-637.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1), 58-71.
García-Fernández, M., Claver-Cortés, E., & Tarí, J. J. (2022). Relationships between quality management, innovation and performance: A literature systematic review. European Research on Management and Business Economics, 28(1), 100172.
Hair Jr, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. SAGE Publications.
Jabbour, C. J. C., de Sousa Jabbour, A. B. L., Govindan, K., Teixeira, A. A., & de Souza Freitas, W. R. (2013). Environmental management and operational performance in automotive companies in Brazil: the role of human resource management and lean manufacturing. Journal of Cleaner Production, 47, 129-140.
Kanapathy, K., Bin, C. S., Zailani, S., & Aghapour, A. H. (2017). The impact of soft TQM and hard TQM on innovation performance: the moderating effect of organisational culture. International Journal of Productivity and Quality Management, 20(4), 429-461.
Kebede Adem, M., & Virdi, S. S. (2021). The effect of TQM practices on operational performance: an empirical analysis of ISO 9001: 2008 certified manufacturing organizations in Ethiopia. The TQM Journal, 33(2), 407-440.
Nabass, E. H., & Abdallah, A. B. (2019). Agile manufacturing and business performance: The indirect effects of operational performance dimensions. Business Process Management Journal, 25(4), 647-666.
Sekaran, U., & Bougie, R.J. (2016). Research method for business: A Skill-building approach: 7th edition, Wiley & Son.
Suwignjo, P., Gunarta, I. K., Wessiani, N. A., Prasetyo, A. E., & Yuwana, L. (2022). Framework for Measuring Process Innovation Performance at Indonesian State-Owned Companies. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 95.
Trattner, A., Hvam, L., Forza, C., & Herbert-Hansen, Z. N. L. (2019). Product complexity and operational performance: A systematic literature review. CIRP Journal of Manufacturing Science and Technology, 25, 69-83.
Yusr, M. M., Mokhtar, S. S. M., Othman, A. R., & Sulaiman, Y. (2017). Does interaction between TQM practices and knowledge management processes enhance the innovation performance?. International Journal of Quality & Reliability Management, 34(7), 955-974.
Downloads
Published
Issue
Section
License
An objective of the Journal of Business Innovation and Research is to promote the wide dissemination of the results of systematic scholarly inquiries into the broad field of business research. Permission is hereby granted to reproduce any of the contents of the journal for use in courses of instruction, as long as the source and “Master in Management Program, Faculty of Economics and Business, UPN Veteran Yogyakarta (MM FEB UPNYK) copyright” are indicated in any such reproductions.
A written application must be made to the editor-in-chief for permission to reproduce any of the contents of the journal for use in anything other than a course of instruction - e. g., inclusion in books of readings or in any other publications intended for general distribution. In consideration for the grant of permission by the journal in such instances, the applicant must notify the author(s) in writing of the intended use to be made of each reproduction. Normally, the journal will not access a charge for the waiver of copyright.
Except where otherwise noted in articles, the copyright of articles in the journal has been transferred to the MM FEB UPNYK. Where the author(s) has (have) not transferred the copyright to the MM FEB UPNYK, the applicant must seek permission to reproduce (for all purposes) directly from the author(s).
