The impact TQM System on Supply Chain Performance through Supply Chain Integration and Employee Satisfaction

Abstract

Indonesia has entered the Southeast Asian free trade market or better known as ASEAN Economic Community (AEC). The economic growth and the increasing number of companies annually will bring some impacts on the competitions for many companies in Indonesia, so they have find their competitive advantage. The biggest competitive advantage of Indonesia is in the primary sector companies which is producing consumer goods from natural raw materials and semi-finished goods. To win the competition, the primary sectors require product standards as the company output by implementing TQM, which usually adopts ISO as the main requirement for exporting their products. This is also the criteria for the research samples. The questionnaires are distributed to 100 companies that have over 100 employees, and the returned questionnaires are 64, with four incomplete questionnaires, making the response rate of 60%. The data analysis is using PLS and proves that all hypotheses are accepted. First, TQM implementation has a positive and significant impact on supply chain integration. Second, TQM implementations in companies are able to create a proper documentation system for each department to facilitate good communication among departments. Third, TQM implementation has a positive impact on supply chain performance and employee satisfaction. Fourth, supply chain integration has a positive impact on employee satisfaction and supply chain performance. Employee satisfaction has a positive effect on supply chain performance. The overall impact of TQM implementation on supply chain performance is 0.4680. TQM implementation brings a positive impact on supply chain integration and supply chain performance, thus increases the total impact of supply chain performance.

Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era

“…The information technology used can provide customer needs information and internal process conditions in real-time [35]. The technology can be utilized, adjusted, and repaired to quickly and efficiently inform the need to suppliers.…”

“…Innovation integrated into the corporate environment will increase product innovation, process innovation, and innovation in procedures, improve business performance, and maintain a competitive advantage, as shown in Taiwan's electronic manufacturing companies [11]. As part of the systems innovation, process innovation can improve supply chain performance because it enhances its efficiency and effectiveness [35,36]. Moreover, product innovation can improve supply chain performance because they produce new products regularly [57].…”

Effect of Supplier Collaboration on Company Performance through Lean Manufacture and Inventory Control

“…SCM includes a set of practices and approaches taken to effectively integrate all parties involved in the supply chain (suppliers, manufacturers, distributors, and customers). The goal is to improve the longterm performance of each organization and the supply chain in a sustainable and high-performance business model (Kristianto & Tarigan, 2019). In addition, SCM has been widely regarded as an effective management tool for organizations to maintain business stability, growth, and company profitability (Gorane & Kant, 2017).…”

The Employee Performance in the Covid-19 Pandemic and Its Antecedents

“…Mondy and Noe (in Sutanto & Patty, 2014) said that the salary given by the company to employees would have an impact on feelings and perceptions, which was commonly referred to as equity theory. Equity theory explains that employees' satisfaction with the salary they receive is always related to a sense of fairness in the salary paid as to result of a long process of comparing themselves with others (Kristianto & Tarigan, 2019). Pranata, Putra, and Sulistyowati (2018) stated that the perception of salary was an employee's response to the salary policy given to the employee in the employee's place of work.…”

“…Launched by the website www.cekaja.com, some examples of large companies implementing employee salary reduction policies such as Garuda Indonesia airline and one of the largest department stores in Indonesia, namely Matahari Department Store. The employee's salary monitoring is not always positively responded to by employees (Kristianto & Tarigan, 2019). Some employees respond negatively to the salary cut, such as a decrease in work motivation and job performance or employee performance.…”