The Effect of Total Quality Management on Organizational Performance with Organizational Culture as an Intervening Variable

Abstract

This study aims to analyze the effect of Total Quality Management (TQM) on organizational performance with organizational culture as an intervening variable in MSME Coffee Shop in Bekasi City. The research method used is a survey by distributing questionnaires to coffee shop managers and employees. Data analysis was carried out using a quantitative approach with regression analysis techniques. The results showed that TQM has a positive and significant effect on organizational performance. Good TQM implementation can improve operational efficiency, product quality, and customer satisfaction, which in turn contributes to improving organizational performance. In addition, organizational culture was also found to act as an intervening variable that strengthens the relationship between TQM and organizational performance. A strong organizational culture, which includes values, beliefs, and practices that support TQM, can increase the effectiveness of TQM implementation and maximize the benefits gained. This study provides practical contributions for managers of MSME coffee shops in improving performance through the implementation of TQM supported by a conducive organizational culture. Managers are encouraged to develop and maintain an organizational culture that supports TQM initiatives, including employee training, effective communication, and rewarding good performance. The theoretical implications of this study also enrich the literature on the role of organizational culture in mediating the relationship between TQM and organizational performance. The findings highlight the importance of considering organizational culture factors in quality improvement strategies and organizational performance.