EFFECT OF CORPORATE GOVERNANCE, INTEGRATED QUALITY MANAGEMENT, CORPORATE SOCIAL RESPONSIBILITY ON COMPETITIVE CAPABILITIES AND OPERATIONAL PERFORMANCE
Keywords:
Corporate governance, integrated quality management, corporate social responsibility, competitive capabilities, operational performanceAbstract
This research aims to investigate and test the direct effect of corporate governance, integrated quality management and corporate social responsibility on competitive capabilities and operational performance. The study was conducted in 43 companies manufacturing in Makassar Industrial Area with a total sample of 129 employees. Structural equation model in AMOS ver. 18 proved thatcorporate governance and integrated quality management has a positive and significant effect on competitive capabilities. Corporatesocial responsibility has not significant effect on competitive capabilities and operational performance. Corporate governance, integrated quality management and competitive capabilities have a positive and significant effect on operational performance. This paper suggests the competitive capabilities are a mediating variable to explain the effect of corporate governance and integrated quality management onoperational performance but not for corporate social responsibility.
Downloads
References
Angel R. Martinez-Lorente & Micaela Martinez-Costa, (2002). ISO 9000 and TQM: Subtitutes or Complementaries? An Empirical Study In Industrial Company. Journal Financial by Fundacion Seneca.
Angel R. Martinez-Lorente & Micaela Martinez-Costa, (2004). Comparison of TQM and ISO 9000 Effects in Company Performance: An Empirical Study in Spanish Companies. Journal Financial by Fundacion Seneca.
Arifin (2005). The role of accountants in Enforcing Principles of Good Corporate Governance in Companies in Indonesia (Agency Theory Perspective Overview)," Speech Inauguration in Accounting Sciences at the Faculty of Economics, University of Diponegoro, Semarang
Bruce Han, Peter, (2007). Managing of Operasional and Quality Behavior. Published by McGraw Hill Book Company, New York.
Carroll, A. B. (1999). Corporate social responsibility evolution of a definitional construct. Business & society, 38(3), 268-295.
Chase, R. B., Aquilano, N. J., & Jacobs, F. R. (1998). Production and operations management. Irwin/McGraw-Hill.
Chee Lie Bauw & Joan Chin (2008). An Integrated Framework for Corporate Governance, Depth Implementation and Firm Performance. Journal of Manufacturing Technology Management Vol. 19 No. 2, 2008. pp. 194-216.
Daniel Jimenez-Jimenez & Micaela Martinez-Costa, (2009). The Performance Effect of HRM and TQM: A Study in Spanish Organizations. International Journal of Operations and Production Management Vol. 29 No. 12, pp. 1266-1289. Emerald Group Publishing Limited.
Davis, Keith, (2009). Conceptualizing, Measuring and Managing Operational Based Brand equity. Published of Prentice Hall, New Jersey.
Divesh S. Sharma, (2005). The Association between ISO 9000 Certification and Financial Performance, International Journal of Accounting 40, 2005) 151 – 172.
Pei-Lee The, Keng-Boon Ooi & Chen-Chen Yong, (2008). Does TQM Impact on Role Stressors? A Conceptual Model. Industrial Management & Data Systems Vol. 108 No. 8, 2008 pp. 1029-1044 Emerald Group Publishing Limited.
Gaspersz, Vincent, (2003). Total Quality Management. Penerbit Gramedia Pustaka, Jakarta.
Hatane Semuel & Joni Zulkarnain, (2011). Influence of the Quality Management System Employee Performance through Corporate Quality Culture. Journal of Management and entrepreneurship, Vol.13, No. 2, September 2011: 162-176.
Hatice CAMGOZ-AKDAG, (2006). A Journey toward Total Quality Management through Six Sigma Benchmarking – A Case Study on SME's in Turkey. The British Romanian University, Bucharest, hcamgozakdaq@yahoo.com.
Jacobs & Chase, (2000). The Operational Performance in Management: Integrating Competitive Focus Across The Firm. The McGraw Hill Companies Inc. New York.
James Thomas Kunnanatt, (2007). Impact of ISO 9000 on Organizational Climate: Strategic Change Management Experience of An Indian Organization. International Journal of Manpower Vol. 28 No. 2, 2007 pp. 175-192 Emerald Group Publishing Limited.
Jang, W. Y., & Lin, C. I. (2008). An integrated framework for ISO 9000 motivation, depth of ISO implementation and firm performance: The case of Taiwan. Journal of Manufacturing Technology Management, 19(2), 194-216.
Jaworski, BJ, & Kohli, AK (1993). Market orientation: antecedents and consequences. The Journal of marketing, 53-70.
Keng Boon Ooi, Nooh Abu Bakar, Veeri Arumugam & Lorraine Vellapan dan Alex Kim Yin Loke, (2007). Does ISO, TQM dan CSR Influence Competitive and Firm Performance? An Empirical Case Analysis. International Journal of Quality & Reliability Management Vol. 24 No. 1, 2007 pp. 62-77 Emerald Group Publishing Limited.
Keng-Boon Ooi, Veeri Arumugam & Pei-Lee The, (2008). TQM Practices and Its Association with Production Workers. Industrial Management & Data Systems Vol. 108 No. 7, 2008, pp. 909-927 Emerald Group Publishing Limited.
KF Pun & IK Hui, (2001). An Analytical Hierarchy Process Assessment of the ISO 14001 Environmental Management System. Integrated Manufacturing System 12/5, 2001) 333-345 MCB University Press, ISSN 0957-6061
La Porta, R. ., Lakonishok, J., Shleifer, A., & Vishny, R. (1997). Good news for value stocks: Further evidence on market efficiency. The Journal of Finance, 52(2), 859-874.
La Porta, R., & Lopez-de-Silanes, F. (1998). Capital markets and legal institutions. Beyond the Washington consensus: Institutions matter, 73-92.
Landy, F. J., & Farr, J. L. (1980). Performance rating. Psychological Bulletin, 87(1), 72.
Marucheck, A., Pannesi, R., & Anderson, C. (1990). An exploratory study of the manufacturing strategy process in practice. Journal of Operations Management, 9(1), 101-123.
Mehmet Karahan & Nevzat Tetik, (2012). The Determination of the Effect Level on Employee Performance of TQM Practices with Artificial Neural Networks: A Case Study on Manufacturing Industry Enterprises in Turkey. International Journal of Business and Social Science Vol. 3 No. 7, April 2012.
Meier, (2005). Managing Good Corporate, Seattle, Richard D. Irwin Inc.
Michaeel Beer, (2003). Why Total Quality Management Programs Do Not Persist: The Role of Management Quality and Implications for Leading a TQM Transformation. Decision Sciences Volume 34 Number 4 Full 2003 Printed in the USA.
Muhammad Ali Fatzal (2005). The Association between Good Corporate Governance and Financial Performance (International Journal of Accounting 40 (2005) 151 – 172.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of marketing, 20-35.
Ojha, D., White, R. E., & Rogers, P. P. (2013). Managing demand variability using requisite variety for improved workflow and operational performance: the role of manufacturing flexibility. Internaational Journal of Production Research, 51(10), 2915-2934
Porter, M. E. (1980). Competitive strategy: techniques for analyzing industries and competitors. Free Press, New York, NY
Ramlawati, (2010). Practice Implications of Total Quality Management, TQM on Competitiveness, Customer Satisfaction and Business Performance in Manufacturing Company in Makassar. Brawijaya University
Rodney McAdam & Alan Bannister, (2001). Business Performance Measurement and Change Management within a TQM Framework. International Journal of Operations and Production Management Vol. 21 No. ½, 2001, pp. 88-107, MCB University Press.
Roos, G., & Roos, J. (1997). Measuring your company's intellectual performance. Long range planning, 30(3), 413-426.
Samuel Petros Sebhatu, (2005). Sustainability Performance for Sustainable Organization beyond Compliance and Reporting. Service Research Centre Karlstad University, Swedia.
Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783.
Syakhroza, A. (2003). Corporate Governance Theory. Majalah Usahawan, (08).
Syamsul Bahri, (2012). Implementation of Total Quality Management, TQM and Its Effect on the Performance of Manufacturing Industry in South Sulawesi, Indonesia. Hasanuddin University, Makassar.
Thomas, R. S. (2008). The evolving role of institutional investors in corporate governance and corporate litigation. Vanderbilt Law Review 61 (2):299-313.
Tunggal, Widjaja Amin. (2009). Akuntansi Manajemen, Jakarta. Harvindo.