The Influence of Total Quality Management on Organizational Performance through Organizational Culture as an Intervening Variable

Abstract

Total Quality Management (TQM) is widely recognized as an effective approach to enhancing competitiveness and supporting the sustainable development of the agricultural industry. This study aims to analyze the effect of TQM on organizational performance, with organizational culture acting as an intervening variable. The research was conducted in a consolidated agro-industrial State-Owned Enterprise located in South Sulawesi, Indonesia. Data were collected from both secondary sources, including company documents and relevant literature, and primary sources obtained through questionnaires using a five-point Likert scale. A total of 69 respondents participated in the study. The data were tested for validity, reliability, and correlation to examine the relationships among TQM, organizational culture, and organizational performance. Descriptive analysis and path analysis were employed using Smart PLS 4.0. The findings indicate that TQM has a positive and significant impact on organizational performance, both directly and indirectly through organizational culture. The effective implementation of TQM practices such as customer focus, top management commitment, process management, benchmarking, and employee involvement contributes to improved operational efficiency and product quality, while simultaneously fostering a quality-oriented organizational culture. The study highlights the theoretical importance of integrating TQM with organizational culture to achieve optimal performance outcomes. Practically, the results provide valuable insights for organizations in formulating strategies to enhance performance through the systematic implementation of TQM supported by a strong and conducive organizational culture.