The Impact of Power Distance and Individualism on Total Quality Management: An Empirical Research on Indonesian Manufacturing Firms

Wahjudi, Didik and Singgih, Moses L. and Suwignyo, Patdono and Baihaqi, Imam (2014) The Impact of Power Distance and Individualism on Total Quality Management: An Empirical Research on Indonesian Manufacturing Firms. In: 6th International Conference on Operations and Supply Chain Management, 10-12-2014 - 12-12-2014, Denpasar, Bali - Indonesia.

PDF Download (387Kb)

Abstract

Power distance is reported to be the most important culture dimension for effective implementation of total quality management (TQM), while low individualism stimulates the company to focus on its long-term customers. Indonesia is characterized by very high power distance and very low individualism. However, Indonesia has a very unique cultural setting because it has many subcultures. This study investigates the impact of power distance and individualism on TQM implementation among Indonesia manufacturing firms. As many foreign companies move their operations to Indonesia, they need to know how to cope with this situation. Data from 152 managers and directors representing 152 organizations are analyzed using structural equation modelling (SEM). The results show that individualism affects TQM implementation positively, while power distance has no correlation with TQM implementation. The contribution of this study is providing direction for improvement to Indonesian manufacturing firms that want to implement TQM. The implication of this finding is that top management need to set up an atmosphere that can improve level of individualism of their employees through people empowerment.

Actions (login required)