Total Quality Management Practices and Operational Performance in Business-to-Business Services An Empirical Study of PT Pratama Mitra Sejati
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Abstract
This study examines the relationship between four Total Quality Management (TQM) practices, namely organizational leadership, customer relationships, human resource management, and supplier management, and operational performance at PT Pratama Mitra Sejati, a business-to-business (B2B) service company specializing in vehicle rental and office building management. The study adopts an explanatory quantitative approach with a cross-sectional design. Primary data were collected through a questionnaire survey involving 52 employees and managers directly engaged in operational activities, selected using purposive sampling. The data were analyzed using multiple linear regression, supplemented by bootstrapping with bias-corrected and accelerated (BCa) 95% confidence intervals and HC3 robust standard errors. The results indicate that organizational leadership, human resource management, and supplier management are positively and significantly associated with operational performance, whereas customer relationships exhibit no statistically significant partial association. Collectively, the four TQM practices significantly explain variations in operational performance, with an R² value of 0.763. Supplier management demonstrates the largest standardized beta coefficient, and the findings remain consistent in the sensitivity analysis. These findings suggest that TQM practices differ in their contributions to operational performance in a B2B service context. Furthermore, the non-significant association between customer relationships and operational performance after controlling for the other TQM practices suggests the possibility of indirect effects or overlapping explanatory contributions among the practices.
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