Figure 1: Research FrameworkResearc

Figure 1: Research Framework

Research framework above generates three hypotheses will be tested in the study. Therefore, the hypotheses could be formulated as follows:

H1 : Total Quality Management (TQM) practices has significant effect toward organizational performance

H2 : Total Quality Management (TQM) practices has significant effect toward competitive advantage

H3 : Competitive advantage has significant effect toward organizational performance

4. Research Method

This study uses a quantitative approach. Quantitative approach is an approach that emphasizes testing theories or concepts through the variable metric measurements and performing data analysis procedure with statistical tools and aims to test the hypothesis (Sugiyono, 2008). The data used in this study were obtained from a questionnaire method. Respondents are manager who have the best knowledge about the operation and quality management in organization. So, it was decided to choose managers who are relevant for the current study such as quality managers, and production/operation managers. The information about the companies was obtained from the Statistical Bureau Center of South Sulawesi Province, Indonesia. The population of this study consisted of registered fishery companies. There were 66 fishery companies registered officially (BPS South Sulawesi, 2009). As many as 66 units of fishery companies were surveyed. The questionnaires mailed by post in part, and the rest delivered directly by researchers at


189

TQM Practices, Competitive Advantage and Organizational Performance

company sample. A number of 55 questionnaires were collected until the end of survey. Therefore, the final sample for the study is 55 fishery companies. Sampling method uses population sampling or census (Sugiyono, 2008).

There were three variables studied, namely: Total Quality Management (TQM) practices, competitive advantage, and organizational performance. Total Quality Management (TQM) practices are taken as exogenous variables. While, competitive advantage, and organizational performance are endogenous variables. Seven items were used to measure TQM practices in organizations based on the aspects leadership, strategic planning, customer focus, information and analysis, people management, process management, and supplier management (Sila and Ebrahimpour, 2005). The competitive advantage variable was measured by price/cost, delivery dependability, product innovation, and time to market (Li et al., 2006). While organizational performance was measured based on the aspects return on investment (ROI), market share (Stock et al., 2000).

Furthermore, overall indicators in the questionnaire of the study uses five-point Likert scale was employed for scoring responses (1 = strongly disagree; 2 = disagree; 3 = neutral; 4 = agree; 5 = strongly agree). For easier interpretation of the results of the study, the scale is changed into interval class as follows: (1) 1.00 to 1.80 = Very Low; (2) 1.81 to 2.60 = Low; (3) 2.61 to 3.40 = high enough, (4) 3.41 to 4.20 = High; and (5) 4.21 to 5.00 = Very High (Sugiyono, 2008).

The validity instrument tested by Pearson Product Moment Correlation. An instrument has high validity if the correlation value of each indicator to total correlation more than 0.30 or r-value > 0.30 (Cooper and Emory, 2002). Reliability of constructs were tested with Cronbach’s Alpha. As suggested by Hair et al. (1998), the cut off point for Cronbach’s Alpha was > 0.60. The results of validity and reliability test presented in table

1. Based on the table, value of correlation (r) and Cronbach’s α were well above the criteria. So, it can be concluded that the instrument used in this study was valid and reliable.

























Figure 1: Research Framework

Research framework above generates three hypotheses will be tested in the study. Therefore, the hypotheses could be formulated as follows:

H1 : Total Quality Management (TQM) practices has significant effect toward organizational performance

H2 : Total Quality Management (TQM) practices has significant effect toward competitive advantage

H3 : Competitive advantage has significant effect toward organizational performance

4. Research Method

This study uses a quantitative approach. Quantitative approach is an approach that emphasizes testing theories or concepts through the variable metric measurements and performing data analysis procedure with statistical tools and aims to test the hypothesis (Sugiyono, 2008). The data used in this study were obtained from a questionnaire method. Respondents are manager who have the best knowledge about the operation and quality management in organization. So, it was decided to choose managers who are relevant for the current study such as quality managers, and production/operation managers. The information about the companies was obtained from the Statistical Bureau Center of South Sulawesi Province, Indonesia. The population of this study consisted of registered fishery companies. There were 66 fishery companies registered officially (BPS South Sulawesi, 2009). As many as 66 units of fishery companies were surveyed. The questionnaires mailed by post in part, and the rest delivered directly by researchers at


189

TQM Practices, Competitive Advantage and Organizational Performance

company sample. A number of 55 questionnaires were collected until the end of survey. Therefore, the final sample for the study is 55 fishery companies. Sampling method uses population sampling or census (Sugiyono, 2008).

There were three variables studied, namely: Total Quality Management (TQM) practices, competitive advantage, and organizational performance. Total Quality Management (TQM) practices are taken as exogenous variables. While, competitive advantage, and organizational performance are endogenous variables. Seven items were used to measure TQM practices in organizations based on the aspects leadership, strategic planning, customer focus, information and analysis, people management, process management, and supplier management (Sila and Ebrahimpour, 2005). The competitive advantage variable was measured by price/cost, delivery dependability, product innovation, and time to market (Li et al., 2006). While organizational performance was measured based on the aspects return on investment (ROI), market share (Stock et al., 2000).

Furthermore, overall indicators in the questionnaire of the study uses five-point Likert scale was employed for scoring responses (1 = strongly disagree; 2 = disagree; 3 = neutral; 4 = agree; 5 = strongly agree). For easier interpretation of the results of the study, the scale is changed into interval class as follows: (1) 1.00 to 1.80 = Very Low; (2) 1.81 to 2.60 = Low; (3) 2.61 to 3.40 = high enough, (4) 3.41 to 4.20 = High; and (5) 4.21 to 5.00 = Very High (Sugiyono, 2008).

The validity instrument tested by Pearson Product Moment Correlation. An instrument has high validity if the correlation value of each indicator to total correlation more than 0.30 or r-value > 0.30 (Cooper and Emory, 2002). Reliability of constructs were tested with Cronbach’s Alpha. As suggested by Hair et al. (1998), the cut off point for Cronbach’s Alpha was > 0.60. The results of validity and reliability test presented in table

1. Based on the table, value of correlation (r) and Cronbach’s α were well above the criteria. So, it can be concluded that the instrument used in this study was valid and reliable.



























1

Hasil (Bahasa Indonesia) 1:

Gambar 1: Penelitian kerangkaKerangka penelitian di atas menghasilkan tiga hipotesis akan diuji dalam studi. Oleh karena itu, hipotesis dapat dirumuskan sebagai berikut:H1: Penerapan Total Quality Management (TQM) memiliki efek signifikan terhadap kinerja organisasiH2: Penerapan Total Quality Management (TQM) memiliki efek signifikan terhadap keunggulan kompetitifH3: Keunggulan kompetitif memiliki efek signifikan terhadap kinerja organisasi4. penelitian metodePenelitian ini menggunakan pendekatan kuantitatif. Pendekatan kuantitatif adalah suatu pendekatan yang menekankan pengujian teori atau konsep melalui variabel metrik pengukuran dan melakukan prosedur analisis data dengan alat Statistik dan bertujuan untuk menguji hipotesis (Sugiyono, 2008). Data yang digunakan dalam penelitian ini diperoleh dari metode kuesioner. Responden adalah manajer yang memiliki pengetahuan terbaik tentang operasi dan manajemen mutu dalam organisasi. Jadi, diputuskan untuk memilih manajer yang relevan untuk studi saat ini seperti kualitas manajer, dan operasi/produksi manajer. Informasi tentang perusahaan yang Diperoleh dari Statistik Biro Pusat dari Provinsi Sulawesi Selatan, Indonesia. Populasi studi ini terdiri dari perusahaan-perusahaan terdaftar perikanan. Ada 66 perusahaan perikanan yang terdaftar secara resmi (BPS Provinsi Sulawesi Selatan, 2009). Sebanyak 66 Unit Perikanan perusahaan yang disurvei. Kuesioner dikirimkan melalui pos di bagian, dan sisanya disampaikan langsung oleh para peneliti di189 TQM praktek, keunggulan kompetitif dan kinerja organisasicontoh perusahaan. Sejumlah 55 kuesioner dikumpulkan hingga akhir survei. Oleh karena itu, sampel akhir untuk studi adalah 55 perusahaan perikanan. Pengambilan contoh menggunakan sampel populasi atau sensus (Sugiyono, 2008).Ada tiga variabel yang dipelajari, yaitu: penerapan Total Quality Management (TQM), keunggulan kompetitif dan kinerja organisasi. Total Quality Management (TQM) praktek yang diambil sebagai variabel eksogen. Sementara, keuntungan kompetitif, dan organisasi kinerja adalah variabel endogen. Tujuh item yang digunakan untuk mengukur TQM praktik dalam organisasi didasarkan pada aspek kepemimpinan, perencanaan strategis, fokus pelanggan, informasi dan analisis, orang-orang manajemen, proses manajemen, dan manajemen pemasok (Sila dan Ebrahimpour, 2005). Variabel keunggulan kompetitif yang diukur oleh harga biaya, pengiriman kehandalan, inovasi produk, dan waktu ke pasar (Li et al., 2006). Sementara kinerja organisasi diukur berdasarkan aspek laba atas investasi (ROI), pasar saham (Stock et al., 2000).Selain itu, keseluruhan indikator dalam kuesioner penelitian menggunakan lima poin Likert skala dipekerjakan untuk mencetak tanggapan (1 = sangat tidak setuju; 2 = tidak setuju; 3 = netral; 4 = setuju; 5 = sangat setuju). Untuk lebih mudah interpretasi hasil penelitian, skala berubah menjadi interval kelas sebagai berikut: (1) 1,00 untuk 1,80 = sangat rendah; (2) 1.81 untuk 2,60 = rendah; (3) 2,61 untuk 3,40 = tinggi cukup, (4) 3.41 untuk 4,20 = tinggi; dan (5) 4,21 untuk 5,00 = sangat tinggi (Sugiyono, 2008).Validitas instrumen diuji oleh Pearson produk saat korelasi. Instrumen memiliki validitas yang tinggi jika nilai korelasi setiap indikator korelasi total lebih dari 0,30 atau r-nilai > 0,30 (Cooper dan Emory, 2002). Keandalan konstruksi diuji dengan Cronbach's Alpha. Seperti yang disarankan oleh Hair et al. (1998), yang memotong titik untuk Cronbach's Alpha adalah > 0,60. Hasil validitas dan uji Reliabilitas disajikan dalam tabel1. berdasarkan tabel, nilai korelasi (r) dan Cronbach/α yang baik di atas kriteria. Jadi, dapat disimpulkan bahwa instrumen yang digunakan dalam penelitian ini adalah sah dan handal.Gambar 1: Penelitian kerangkaKerangka penelitian di atas menghasilkan tiga hipotesis akan diuji dalam studi. Oleh karena itu, hipotesis dapat dirumuskan sebagai berikut:H1: Penerapan Total Quality Management (TQM) memiliki efek signifikan terhadap kinerja organisasiH2: Penerapan Total Quality Management (TQM) memiliki efek signifikan terhadap keunggulan kompetitifH3: Keunggulan kompetitif memiliki efek signifikan terhadap kinerja organisasi4. penelitian metodePenelitian ini menggunakan pendekatan kuantitatif. Pendekatan kuantitatif adalah suatu pendekatan yang menekankan pengujian teori atau konsep melalui variabel metrik pengukuran dan melakukan prosedur analisis data dengan alat Statistik dan bertujuan untuk menguji hipotesis (Sugiyono, 2008). Data yang digunakan dalam penelitian ini diperoleh dari metode kuesioner. Responden adalah manajer yang memiliki pengetahuan terbaik tentang operasi dan manajemen mutu dalam organisasi. Jadi, diputuskan untuk memilih manajer yang relevan untuk studi saat ini seperti kualitas manajer, dan operasi/produksi manajer. Informasi tentang perusahaan yang Diperoleh dari Statistik Biro Pusat dari Provinsi Sulawesi Selatan, Indonesia. Populasi studi ini terdiri dari perusahaan-perusahaan terdaftar perikanan. Ada 66 perusahaan perikanan yang terdaftar secara resmi (BPS Provinsi Sulawesi Selatan, 2009). Sebanyak 66 Unit Perikanan perusahaan yang disurvei. Kuesioner dikirimkan melalui pos di bagian, dan sisanya disampaikan langsung oleh para peneliti di189 TQM praktek, keunggulan kompetitif dan kinerja organisasicontoh perusahaan. Sejumlah 55 kuesioner dikumpulkan hingga akhir survei. Oleh karena itu, sampel akhir untuk studi adalah 55 perusahaan perikanan. Pengambilan contoh menggunakan sampel populasi atau sensus (Sugiyono, 2008).There were three variables studied, namely: Total Quality Management (TQM) practices, competitive advantage, and organizational performance. Total Quality Management (TQM) practices are taken as exogenous variables. While, competitive advantage, and organizational performance are endogenous variables. Seven items were used to measure TQM practices in organizations based on the aspects leadership, strategic planning, customer focus, information and analysis, people management, process management, and supplier management (Sila and Ebrahimpour, 2005). The competitive advantage variable was measured by price/cost, delivery dependability, product innovation, and time to market (Li et al., 2006). While organizational performance was measured based on the aspects return on investment (ROI), market share (Stock et al., 2000).Furthermore, overall indicators in the questionnaire of the study uses five-point Likert scale was employed for scoring responses (1 = strongly disagree; 2 = disagree; 3 = neutral; 4 = agree; 5 = strongly agree). For easier interpretation of the results of the study, the scale is changed into interval class as follows: (1) 1.00 to 1.80 = Very Low; (2) 1.81 to 2.60 = Low; (3) 2.61 to 3.40 = high enough, (4) 3.41 to 4.20 = High; and (5) 4.21 to 5.00 = Very High (Sugiyono, 2008).Validitas instrumen diuji oleh Pearson produk saat korelasi. Instrumen memiliki validitas yang tinggi jika nilai korelasi setiap indikator korelasi total lebih dari 0,30 atau r-nilai > 0,30 (Cooper dan Emory, 2002). Keandalan konstruksi diuji dengan Cronbach's Alpha. Seperti yang disarankan oleh Hair et al. (1998), yang memotong titik untuk Cronbach's Alpha adalah > 0,60. Hasil validitas dan uji Reliabilitas disajikan dalam tabel1. berdasarkan tabel, nilai korelasi (r) dan Cronbach/α yang baik di atas kriteria. Jadi, dapat disimpulkan bahwa instrumen yang digunakan dalam penelitian ini adalah sah dan handal.1