Total quality management of micro, small and medium enterprises (MSMEs), and the impact to organizational culture and performance: Emerging country case

Abstract

The purpose of this paper is to determine the correlation and effect between the implementation of Total Quality Management (TQM) and organizational culture on MSMEs’ organizational performance in Indonesia. The data analysing technique was descriptively carried out by multiple linear regression. The research method used the model to investigate a relationship between organizational culture, Total Quality Management implementation and performance on MSMEs in Lampung and Surabaya. The data of MSMEs was obtained from the Indonesian Statistics Bureau. The paper found that the correlation and effect between the implementation of Total Quality Management and organizational culture on organizational performance in Indonesia, to provide practical knowledge for Indonesian practitioners, and to understand the eminence of the implementation of Total Quality Management and organizational culture on MSMEs’ performance. Total Quality Management constructs engaged a positive role in improving organizational performance.