THE EFFECT OF IMPLEMENTATION SUPPLY CHAIN MANAGEMENT CAPABILITIES AND TOTAL QUALITY MANAGEMENT ON FIRM PERFORMANCE

Abstract

Background: For any company that faces free competition, a promotion of quality performance will certainly have to take over demand for consumers and win them over again. Through implementation of the total quality management, it can be done by maximizing the criteria. That results through performance and execution of involvement from any part of the corporate organization.

Purpose: Moreover, involvement from supply chain management capabilities can increase efficiency and effectiveness in companies. This could have an effect on the growing cooperation between fast and proper organizations and decision making, through a management fungus that can be applied to companies and a direct influence on the continuity of the criteria enhancement embodied in firm performance.

Design/methodology/approach: The empirical data was obtained from the distribution of the Questionnaire, 105 respondents, as employees of the company on the move of the distribution industry across the country. The study uses confirmatory factor analysis to do the construct and design test, the connectedness and interconnectedness between variables throughout the least square.

Findings/Result: The study is conducted according to perspective impacts produced at a company's top management level on the quality aspect that is expected to have impact on later research in coordinating management.

Conclusion: This study highlights the significant role of Total Quality Management (TQM) in enhancing firm performance within the distribution industry. While Supply Chain Management (SCM) capabilities positively influence TQM, their direct impact on firm performance is not significant. The findings underscore that firms aiming for long-term sustainability and competitive advantage should focus on integrating TQM practices to improve operational efficiency and product/service quality. Additionally, leveraging the Resource-Based View (RBV) strategy can help companies achieve strategic efficiency and maintain competitiveness in dynamic market environments.

Originality/value (State of the art): This study contributes to the literature by examining the interconnectedness of SCM capabilities, TQM, and firm performance in the distribution industry, particularly in the context of post-pandemic challenges. Its originality lies in combining empirical data with advanced statistical methods, structural equation modeling (SEM), to validate these relationships. The study offers practical insights for top management to prioritize quality management strategies and resource optimization to enhance organizational performance and sustain competitive advantages.