An Analysis of the Effect of Quality Management System Implementation on Corporate Performance through Competitive Advantage (A Study at PT. Persada Engineering & Contracting)


Authors : Mukhlis; Dudi Permana

Volume/Issue : Volume 5 - 2020, Issue 11 - November

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/33VxN55

The globalization paradigm has entered all aspects of life. The current increased competition is very intense, along with changing consumer tastes, socioeconomic changes and technological advances creating various business opportunities and challenges. PT Persada Engineering & Contracting has not met the quality performance target as set or has become the company standard. The consistent deterioration of the product quality from 2017-2019 shows that the quality management system implementation has not been optimal in the company. This study aims to examine the effect of customer focus, supplier focus, process management, quality assurance, competitive advantage on corporate performance. As well as to assess the customer focus, supplier focus, process management, quality assurance on corporate performance through competitive advantage. This study adopts a quantitative approach with the type of explanatory research. The population of this study is the employees of PT. Persada Engineering & Contracting totaling 53 employees. The sample method used (probability sampling) and the sampling techniques was simple random sampling.Through the Structural Equation Model (SEM) approach with measurement model using the Smart PLS program version 3.2.8. The results showed that Customer focus has a positive effect on the corporate performance, Supplier focus has a positive and insignificant effect on the corporate performance, Process management has a positive effect on the corporateperformance, Quality assurance has a positive effect on the corporate performance, Competitive advantage has a positive effect on the corporateperformance, Consumer focus has a positive and insignificant effect on the corporateperformance through competitive advantage, Supplier focus has a positive and insignificant effect on the corporate performance hroughcompetitive advantage, Process management has a positive and insignificant effect on the corporateperformance through competitive advantage, Quality assurance has a positive effect on corporateperformance through competitive advantage.

Keywords : Customer Focus, Process Management, Quality Assurance, Supplier Focus, Competitive Advantage, and corporate performance.

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