PENGARUH TOTAL QUALITY MANAGEMENT (TQM) TERHADAP KINERJA UMKM DENGAN INOVASI SEBAGAI MEDIASI (STUDI EMPIRIS PADA UMKM KOTA SERANG)

Abstract

The rapid rise in business competition has compelled MSMEs to innovate and adopt management models that provide a competitive edge. This research examines the influence of Total Quality Management (TQM), innovation, and MSME performance. A quantitative approach with a survey design was used, collecting primary data through questionnaires and structured interviews with SME owners in Serang City. The data were analyzed using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) with SmartPLS 4.0 software. The results show: 1) TQM positively and significantly affects innovation; 2) TQM positively and significantly affects MSME performance; 3) Innovation positively and significantly affects MSME performance; 4) Innovation mediates the relationship between TQM and MSME performance.