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http://dx.doi.org/10.15722/jds.20.07.202207.97

Logistic Capability and Total Quality Management Practice on SME's Performance  

MARJAN, Yakuttinah (Department of Management Science, Faculty of Economics and Business, Universitas Airlangga)
HASANAH, Uswatun (Department of Management Science, Faculty of Economics and Business, Universitas Airlangga)
MULIATIE, Yurilla Endah (Department of Management Science, Faculty of Economics and Business, Universitas Wijaya Putra)
USMAN, Indrianawati (Department of Management Science, Faculty of Economics and Business, Universitas Airlangga)
Publication Information
Journal of Distribution Science / v.20, no.7, 2022 , pp. 97-105 More about this Journal
Abstract
Purpose: This study aims to analyze and prove the effect of logistic capability and Total Quality Management practices on Micro, Small and Medium Enterprises (SME) performance directly or mediated by non-financial performance. Research design, data and methodology: This study tested the hypothesis using Hierarchical multiple regression analysis, the method of data collection in this study was using questionnaire, the sampling technique was purposive sampling technique, with SME that has been established for more than 5 years and manufacturing. The data analyzed were 180 respondents using SPSS 25. Results: The findings showed that logistic capability has direct and indirect effects on SME financial performance and has a positive effect on SME financial performance mediated by non-financial performance. While the total quality management practices have a positive effect on SME financial performance mediated by non-financial performance. Thus, companies can achieve maximum financial performance if they invest in developing employee knowledge and concerning on non-financial actions, such as employee satisfaction, innovation and proactively seeking market opportunities. Conclusions: In conclusion, one of the main factors that companies need to consider to improve financial performance is non-financial performance in mediating the effect of logistic capability and TQM practices on the financial performance of SMEs.
Keywords
Logistic Capability; TQM Practices; SME; Distribution; Non-financial Performance; Financial Performance;
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