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

Abstract

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