This study conducts a comprehensive review of the
literature and develops a framework that links among TQM practices, competitive
advantage, and corporate performance.The paper provides empirical support for
direct and indirect effects of TQM practices on competitive advantage and
corporate performance.The purpose of this research is to empirically
investigate the impact of TQM practices on competitive advantage and corporate
performance. The study utilized primary data obtained from a questionnaire
method. 167 manufacturing companies were surveyed in Makassar, South Sulawesi.
A total of 114 completed questionnaires were returned as final sample. Four
hypotheses have been developed through literature review and tested using
Structural Equation Modeling (SEM) by software of IBM SPSS and AMOS version 20.
The result shows that TQM practices has significant effect on corporate
performance and competitive advantage directly. TQM practices has significant
effect on corporate performance through competitive advantage. Competitive
advantage has significant effect on corporate performance. Corporate
performance is more influenced by competitive advantage than TQM practices.