Implementation strategy of total quality management and quality culture to increase the competitiveness of contractor companies in Indonesia

Abstract

When compared to the manufacture industry, the construction industry is being a concern because of their poor quality produced. For this reason, many contractor companies adopted and implemented management strategies to improve their product quality. One of management strategy approaches used is Total Quality Management (TQM). Implementation of TQM requires a fundamental change by changing the culture, processes, strategies, and beliefs in a company. This quality orientation is the key to fulfill customer satisfaction and business practices. Quality Culture is a part of organizational culture related to habits, beliefs, values, morals, and behavior to improve quality of the product. In Indonesia, contractor companies are generally weak in many ways. This will cause contractor company in Indonesia have great difficulties to be competitive with foreign contractors. This increasing global competition makes contractor companies in Indonesia have to adopt TQM and Quality Culture as one of the strategies to always make improvements continuously so as to provide competitive advantage and increase company performance. For Indonesian contractor companies to compete with foreign contractors, the alternative strategy is needed. Framework of the alternative strategy is the result of the implementation of TQM and Quality Culture, because they can be seen as a strategy that improves economic conditions and helps companies achieve competitive advantage.