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Influence of TQM on increasing sustainable competitive advantage with transformational leadership as a mediation variable

Author

Listed:
  • Munawar Muchlish

    (Accounting Department, Faculty of Economics and Business, University of Sultan Ageng Tirtayasa, Banten. Indonesia)

  • Mazda Eko Sri Tjahyono

    (Accounting Department, Faculty of Economics and Business, University of Sultan Ageng Tirtayasa, Banten. Indonesia)

Abstract

The objective of this study was to determine and analyze the impact of TQM, Transformational Leadership (TL), and Executive Ability (EA) on improving sustainable competitive advantage (SCA) in MSMEs in Banten Province based on local leading potential. The method of distributing questionnaires is used in this study to collect primary data. This study's population consisted of all owners and managers of MSMEs in Banten Province. In contrast, the sample in this study is formed of the owners and managers of MSMEs of Local Leading Potential in Banten Province. Purposive sampling was being used in the study, as well as Warp PLS V. 7.0 and SPSS Version 25 test equipment. The findings of this study were as follows: (1) TQM had a significant positive effect on TL and SCA, but not on EA. (2) TL has a statistically significant positive effect on SCA and EA. (3) EA has a statistically significant positive effect on SCA. (4) TL mediates the effect of TQM on SCA and TQM on EA, and (5) EA does not mediate the effect of TQM on SCA. VAF (Variance Accounted For) has been used to calculate mediation effects. Key Words:TQM, Transformational Leadership, Sustainable Competitive Advantage, SEM WarpPLS

Suggested Citation

  • Munawar Muchlish & Mazda Eko Sri Tjahyono, 2021. "Influence of TQM on increasing sustainable competitive advantage with transformational leadership as a mediation variable," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(8), pages 100-106, December.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:8:p:100-106
    DOI: 10.20525/ijrbs.v10i8.1473
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    References listed on IDEAS

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    1. Valmohammadi, Changiz & Roshanzamir, Shervin, 2015. "The guidelines of improvement: Relations among organizational culture, TQM and performance," International Journal of Production Economics, Elsevier, vol. 164(C), pages 167-178.
    2. Tubagus Ismail, 2016. "Culture control, capability and performance: evidence from creative industries in Indonesia," Asian Review of Accounting, Emerald Group Publishing, vol. 24(2), pages 171-184, May.
    3. Wu, Chia-Huei & Wang, Zhen, 2015. "How transformational leadership shapes team proactivity: the mediating role of positive affective tone and the moderating role of team task variety," LSE Research Online Documents on Economics 61034, London School of Economics and Political Science, LSE Library.
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