The Effect of Total Quality Management (TQM) on Company Performance (Case Study of Wholesale and Retail Business at UD NKC Rupat Karyasindo)

Abstract

This study aims to determine the influence of Total Quality Management practices on the Performance of Wholesale and Retail Business Companies at UD NKC Rupat Karyasindo, in this study there are five independent variables, namely, Focus on Customers, Teamwork, Training, Leadership, and Communication. The population in this study is employees of UD NKC Rupat Karyasindo with a sample of 43 respondents in this study obtained using the slovin formula. This study uses SEM (Structural Equation Modeling) and Path Coefficient analysis using the Partial Least Square (PLS) method. The results of this study found that four of the five independent variables, namely Focus on customers, Training, Leadership, and Communication, had a positive and significant influence on company performance. Meanwhile, the Teamwork variable does not have a positive and significant effect on the company's performance. The findings of this study are when the practice of Total Quality Management is applied as improving the quality of distributing goods that can improve company performance.