EFFECT OF CORPORATE GOVERNANCE, INTEGRATED QUALITY MANAGEMENT, CORPORATE SOCIAL RESPONSIBILITY ON COMPETITIVE CAPABILITIES AND OPERATIONAL PERFORMANCE

Abstract

This research aims to investigate and test the direct effect of corporate governance, integrated quality management and corporate social responsibility on competitive capabilities and operational performance. The study was conducted in 43 companies manufacturing in Makassar Industrial Area with a total sample of 129 employees. Structural equation model in AMOS ver. 18 proved thatcorporate governance and integrated quality management has a positive and significant effect on competitive capabilities. Corporatesocial responsibility has not significant effect on competitive capabilities and operational performance. Corporate governance, integrated quality management and competitive capabilities have a positive and significant effect on operational performance. This paper suggests the competitive capabilities are a mediating variable to explain the effect of corporate governance and integrated quality management onoperational performance but not for corporate social responsibility.