Edy, Dwi Kurniati (2017) The Role of Total Quality Management in Batik Business. Journal of Economic & Management Perspectives, 11 (3). ISSN 2523-5338 (Submitted)
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Abstract
In economics, production factors are divided into four groups namely labor, capital, resources, and entrepreneurship. Schumpctcr (1934) describes that the main factors of entrepreneurship is innovation. Efforts made by entrepreneurs in innovation are through product innovation, market innovation, business alliances and the implementation of quality management standards in the company. This study is a further research from previous study by focusing the role of entrepreneurs in the implementation of quality management standards within the company. The demands of the application of quality management, well krumn as Total Quality Management (TQM), especially in obtaining certification of quality standards for batik industry in Central Java province is becoming increasingly important in confronting the ASEAN Economic Community (AEC) by 2015. TQM needs to be aligned with the implementation of the strategy and the characteristics of the company due to the implementation of TQM are a process that consumes cost, time and resources, especially in the early implementation. Based on this background, the problem in this research is 'What is the impact of the implementation of TQM and the characteristics of the company against economic efficiency in the batik industries in Central Java province?". The objective of this research is to build an application model of total quality management in accordance with the characteristics of the company to economic efficiency in batik industries in Central Java province. Central Java province is taken as the research area within 100 respondents from entrepreneurial batik industries in three regencies/cities as the centers of batik industries in Central Java province. The data are collected by direct interview approach to the management or owners of batik business. Further, the data are analyzed using analysis approach production cost efficiency frontier. The final results are: (1) the role of entrepreneurs in the implementation of TQM does not significantly increase production, but significantly increase revenue. (2) The application of TQM significantly increase revenues primarily in companies with medium and large-scale, export-oriented, and companies that use the strategy of focus and differentiation. (3) Economic price efficiency and batik entrepreneurs economic are significantly higher in entrepreneurial implement TQM. larger-scale, export-oriented and using focused and differentiation strategy, but technical efficiency is only affected by the scale and market share.
| Item Type: | Article |
|---|---|
| Subjects: | A General Works > AC Collections. Series. Collected works |
| Divisions: | Fakultas Ekonomi dan Bisnis |
| Depositing User: | Prof.Dr. Edy Dwi Kurniati |
| Date Deposited: | 27 Aug 2019 06:32 |
| Last Modified: | 28 Feb 2020 04:28 |
| URI: | http://repository.undaris.ac.id/id/eprint/32 |
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