Analyzing the impact of TQM, service quality, and market orientation on customer satisfaction in state-owned banks Indonesia
Main Article Content
Abstract
The economic environment has significantly changed, necessitating quality improvements to achieve the organization’s competitive advantage. A notable progress involves the creation and execution of a quality management system, utilizing the Total Quality Management (TQM) principle to address forthcoming consumer requirements. This paper explores the impact of TQM, service quality, and market orientation effects customer satisfaction in East Java’s state-owned banking sector. The researchers collected empirical data from 199 respondents who were employees of state-owned banks in East Java. In this research, we utilized PLS-SEM analysis to investigate the connections between the variables. The results indicate a positive effect between TQM and service quality, market orientation, and customer satisfaction. Moreover, there is a positive association between service quality, market orientation, and customer satisfaction. According to this study, state-owned banks in East Java should focus on implementing TQM, improving service quality, and developing a market orientation to enhance customer satisfaction. By practicing effective TQM, continuously improving service quality, and adapting responsive marketing strategies, state-owned banks can improve customer satisfaction and strengthen their position in the highly competitive banking sector.
Lingkungan ekonomi telah mengalami perubahan besar dan perlunya melakukan peningkatan kualitas untuk mencapai keunggulan kompetitif organisasi. Salah satu perkembangan tersebut melibatkan pengembangan dan penerapan sistem manajemen mutu dengan menerapkan konsep Total Quality Management (TQM) guna memenuhi kebutuhan konsumen di masa mendatang. Penelitian ini bertujuan untuk mengeksplorasi pengaruh antara TQM, service quality, dan market orientation terhadap korelasi customer satisfaction di sektor perbankan BUMN Jawa Timur. Peneliti mengumpulkan data empiris dari 199 responden yang merupakan pegawai bank BUMN di Jawa Timur. Dalam penelitian ini, peneliti menggunakan analisis faktor konfirmatori untuk menguji reliabilitas dan validitas konfigurasi, sedangkan hubungan antar variabel diperiksa melalui Partial Least Square. Penelitian ini membuktikan bahwa TQM berhubungan positif dengan Service Quality, Market Orientation, dan Customer Satisfaction. Service Quality dan Market Orientation juga berhubungan secara positif dengan Customer Satisfaction. Menurut penelitian ini, perbankan BUMN di Jawa Timur perlu mendapat perhatian serius untuk menerapkan TQM, meningkatkan kualitas layanan dan mengembangkan orientasi pasar untuk meningkatkan kepuasan nasabah. Dengan menerapkan praktik TQM yang efektif, terus meningkatkan kualitas layanan, dan merespons perubahan strategi pemasaran, perbankan BUMN dapat meningkatkan kepuasan nasabah dan memperkuat posisinya di tengah sektor perbankan yang sangat kompetitif.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This work is licensed under a Jurnal Manajemen Bisnis dan Kewirausahaan Creative Commons Attribution-ShareAlike 4.0 International License.
References
Abdullahi, M. S., Shehu, U. R., Usman, B. M., & Gumawa, A. M. (2020). Relationship between total quality management and organizational performance: Empirical evidence from selected airlines in Nigeria aviation industry. Asian People Journal (APJ), 3(1), 30–44. https://doi.org/10.37231/apj.2020.3.1.128
Al-Jarrah, M. F. M., Hailat, K. Q., & Jarah, B. A. F. (2023). Total quality management and its role in improving customer relations in Jordanian Islamic banks. Uncertain Supply Chain Management, 11(1), 119–126. https://doi.org/10.5267/j.uscm.2022.11.003
Bazazo, I., Alansari, I., Alquraan, H., Alzgaybh, Y., & Masa’deh, R. (2017). The influence of total quality management, market orientation and e-marketing on hotel performance. International Journal of Business Administration, 8(4), 79–99. https://doi.org/10.5430/ijba.v8n4p79
Bhaskar, H. L. (2020). Establishing a link among total quality management, market orientation and organizational performance: An empirical investigation. TQM Journal, 32(6), 1507–1524. https://doi.org/10.1108/TQM-01-2019-0012
Calvo-Mora, A., Picón, A., Ruiz, C., & Cauzo, L. (2014). The relationships between soft-hard TQM factors and key business results. International Journal of Operations and Production Management, 34(1), 115–143. https://doi.org/10.1108/IJOPM-09-2012-0355
Chang, C. C., Chiu, C. M., & Chen, C. A. (2010). The effect of TQM practices on employee satisfaction and loyalty in government. Total Quality Management and Business Excellence, 21(12), 1299–1314. https://doi.org/10.1080/14783363.2010.530796
Demirbag, M., Koh, S. C. L., Tatoglu, E., & Zaim, S. (2006). TQM and market orientation’s impact on SMEs’ performance. Industrial Management and Data Systems, 106(8), 1206–1228. https://doi.org/10.1108/02635570610710836
Faraj, K. M., Faeq, D. K., Abdulla, Daroon F.Ali, B. J., & Sadq, Z. M. (2021). Total quality management and hotel employee creative performance: The mediation role of job embeddedment. Journal of Contemporary Issues in Business and Government, 27(1), 3838–3855. https://doi.org/10.47750/cibg.2021.27.01.001
Gani, A., & Oroh, A. N. H. (2021). The effect of product quality, service quality and price on customer satisfaction at Loki store. KnE Social Sciences, 116–128. https://doi.org/10.18502/kss.v5i5.8803
Ghozali, I. (2018). Aplikasi analisis multivariate dengan program IBM SPSS 25 (9th ed.). Badan Penerbit Universitas Diponegoro.
Gounaris, S. P., Stathakopoulos, V., & Athanassopoulos, A. D. (2003). Antecedents to perceived service quality: An exploratory study in the banking industry. International Journal of Bank Marketing, 21(4), 168–190. https://doi.org/10.1108/02652320310479178
Gunawan, R. I., Moeljadi, & Aisjah, S. (2017). Pengaruh orientasi pasar dan kompetensi sumberdaya manusia terhadap loyalitas pelanggan melalui kepuasaan pelanggan. Jurnal Manajemen dan Kewirausahaan, 5(1), 22–31. https://doi.org/10.26905/jmdk.v5i1.1274
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414–433. https://doi.org/10.1007/s11747-011-0261-6
Hanoum, F. C., Kosasih, F. G., & Safariningsih, R. T. H. (2022). Penerapan Total Quality Management (TQM) dalam meningkatkan kualitas pelayanan rumah sakit. Reslaj : Religion Education Social Laa Roiba Journal, 4(3), 804–815. https://doi.org/10.47467/reslaj.v4i3.950
Harimurti, R., & Suryani, T. (2019). The impact of total quality management on service quality, customer engagement, and customer loyalty in banking. Jurnal Manajemen dan Kewirausahaan, 21(2), 95–103. https://doi.org/10.9744/jmk.21.2.95-103
Hisam, M. W., Sanyal, S., & Ahmad, M. (2016). The impact of service quality on customer satisfaction: A study on selected retail stores in India. International Review of Management and Marketing, 6(4), 851–856. https://www.econjournals.com/index.php/irmm/article/view/2990
Isaiah, K. M. I., & Turyakira, P. K. (2019). Does market orientation impact customer satisfaction? Evidence from the banking industry in Uganda. International Journal of Business and Management, 14(4), 19–23. https://doi.org/10.5539/ijbm.v14n4p19
Joseph, M., & Stone, G. (2003). An empirical evaluation of US bank customer perceptions of the impact of technology on service delivery in the banking sector. International Journal of Retail & Distribution Management, 31(4), 190–202. https://doi.org/10.1108/09590550310469185
Khan, I., & Bashir, T. (2020). Market orientation, social entrepreneurial orientation, and organizational performance: The mediating role of learning orientation. Iranian Journal of Management Studies, 13(4), 673–703. https://doi.org/10.22059/IJMS.2020.289467.673800
Khan, M. R., Khan, N. R., Kumar, V. V. R., Bhatt, V. K., & Malik, F. (2022). Customer-defined market orientation, brand image and customer satisfaction: A mediation approach. SAGE Open, 12(4), 215824402211418. https://doi.org/10.1177/21582440221141860
Kristian P., F. A. B., & Panjaitan, H. (2014). Analysis of customer loyalty through total quality service, customer relationship management, and customer satisfaction. International Journal of Evaluation and Research in Education (IJERE), 3(3), 142–151. https://doi.org/10.11591/ijere.v3i3.6191
Lam, S. Y., Lee, V. H., Ooi, K. B., & Phusavat, K. (2012). A structural equation model of TQM, market orientation and service quality: Evidence from a developing nation. Managing Service Quality, 22(3), 281–309. https://doi.org/10.1108/09604521211230996
Lepistö, K., Saunila, M., & Ukko, J. (2022). Enhancing customer satisfaction, personnel satisfaction and company reputation with total quality management: Combining traditional and new views. Benchmarking. https://doi.org/10.1108/BIJ-12-2021-0749
Lupiyoadi, R., & Hamdani, D. A. (2011). Manajemen pemasaran jasa (2nd ed.). Salemba Empat.
Marques, C. S., Santos, G., Marques, V., & Ramos, E. (2018). The impact of knowledge creation, acquisition and transfer on innovation in the healthcare sector. European Conference on Knowledge Management, 494–502. https://www.proquest.com/openview/56146799514cd6f30fadfe7f6739975b/1?pq-origsite=gscholar&cbl=1796412
Mehra, S., & Ranganathan, S. (2008). Implementing total quality management with a focus on enhancing customer satisfaction. International Journal of Quality and Reliability Management, 25(9), 913–927. https://doi.org/10.1108/02656710810908070
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20–35. https://doi.org/10.2307/1251757
Nassar, M. L., Yahaya, K. A., & Shorun, C. Y. (2015). Total quality management and customers satisfaction in selected service industries in Ilorin, Nigeria. Journal of Sustainable Development in Africa, 17(6), 146–162. https://jsd-africa.com/Jsda/Vol17No6-Fall15B/PDF/Total Quality Management and Customers.Khadijat Adenola.pdf
Newman, K. (2001). Interrogating SERVQUAL: A critical assessment of service quality measurement in a high street retail bank. International Journal of Bank Marketing, 19(3), 126–139. https://doi.org/10.1108/02652320110388559
Nguyen, T. L. H., & Nagase, K. (2019). The influence of total quality management on customer satisfaction. International Journal of Healthcare Management, 12(4), 277–285. https://doi.org/10.1080/20479700.2019.1647378
Nor, N. M., Bahari, N. A. S., Adnan, N. A., Kamal, S. M. Q. A. S., & Ali, I. M. (2016). The effects of environmental disclosure on financial performance in Malaysia. Procedia Economics and Finance, 35, 117–126. https://doi.org/10.1016/s2212-5671(16)00016-2
Ooi, K. B., Lin, B., Tan, B. I., & Chong, A. Y. L. (2011). Are TQM practices supporting customer satisfaction and service quality? Journal of Services Marketing, 25(6), 410–419. https://doi.org/10.1108/08876041111161005
Osuagwu, L., & Obaji, R. (2011). Market orientation in Nigerian manufacturing companies. International Business & Economics Research Journal (IBER), 8(9), 67–72. https://doi.org/10.19030/iber.v8i9.3170
Pakurár, M., Haddad, H., Nagy, J., Popp, J., & Oláh, J. (2019). The service quality dimensions that affect customer satisfaction in the Jordanian banking sector. Sustainability (Switzerland), 11(4), 1113. https://doi.org/10.3390/su11041113
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–50. https://doi.org/10.2307/1251430
Pattanayak, D., Koilakuntla, M., & Punyatoya, P. (2017). Investigating the influence of TQM, service quality and market orientation on customer satisfaction and loyalty in the Indian banking sector. International Journal of Quality and Reliability Management, 34(3), 362–377. https://doi.org/10.1108/IJQRM-04-2015-0057
Pramesti, N. M. V., & Giantari, I. G. A. K. (2016). Peran orientasi pasar memediasi pengaruh orientasi kewirausahaan terhadap kinerja UKM industri kerajinan Endek. E-Jurnal Manajemen Unud, 5(9), 5754–5782. https://ojs.unud.ac.id/index.php/Manajemen/article/view/23019
Psomas, E. L., & Jaca, C. (2016). The impact of total quality management on service company performance: Evidence from Spain. International Journal of Quality and Reliability Management, 33(3), 380–398. https://doi.org/10.1108/IJQRM-07-2014-0090
Rahmayanty, N. (2010). Manajemen pelayanan prima (1st ed.). Graha Ilmu.
Samat, N., Ramayah, T., & Mat Saad, N. (2006). TQM practices, service quality, and market orientation: Some empirical evidence from a developing country. Management Research News, 29(11), 713–728. https://doi.org/10.1108/01409170610716025
Saraswati, E. (2021). Market orientation, service quality on customer satisfaction and loyalty: Study on Sharia banking in Indonesia. Golden Ratio of Marketing and Applied Psychology of Business, 2(1), 26–41. https://doi.org/10.52970/grmapb.v2i1.157
Shanka, M. S. (2012). Bank service quality, customer satisfaction and loyalty in Ethiopian banking sector. Journal of Business Administration and Management Sciences Research, 1(1), 1–9. http://www.apexjournal.org/JBAMSR
Simatupang, H. B. (2019). Peranan perbankan dalam meningkatkan perekonomian Indonesia. Jurnal Riset Akuntansi Multiparadigma (JRAM), 6(2), 136–146. https://doi.org/10.30743/akutansi.v6i2.2184
Simorangkir, S. O., & Ardiantono, D. S. (2022). Pengaruh total quality management (TQM) terhadap kinerja karyawan PT Bank X. Jurnal Sains dan Seni ITS, 11(5), 172–177. https://doi.org/10.12962/j23373520.v11i5.90925
Sinambela, E. A., & Darmawan, D. (2021). Pengaruh total quality management dan manajemen pengetahuan terhadap kinerja organisasi. Jurnal Manajemen dan Ekonomi Bisnis, 1(4), 1–12. https://prin.or.id/index.php/cemerlang/article/view/270
Sparks, R. E., & Legault, R. D. (1993). A definition of quality for total customer satisfaction: The bridge between manufacturer and customer. SAM Advanced Management Journal, 58(1). https://go.gale.com/ps/i.do?p=AONE&u=googlescholar&id=GALE%7CA14320089&v=2.1&it=r&sid=googleScholar&asid=f781f067
Supriyanto, A., Wiyono, B. B., & Burhanuddin, B. (2021). Effects of service quality and customer satisfaction on loyalty of bank customers. Cogent Business and Management, 8(1), 1937847. https://doi.org/10.1080/23311975.2021.1937847
Sutrisno, T. F. C. W. (2019). Relationship between total quality management element, operational performance and organizational performance in food production SMEs. Jurnal Aplikasi Manajemen, 17(2), 285–294. https://doi.org/10.21776/ub.jam.2019.017.02.11
Terziovski, M. (2006). Quality management practices and their relationship with customer satisfaction and productivity improvement. Management Research News, 29(7), 414–424. https://doi.org/10.1108/01409170610690871
Topalović, S. (2015). The implementation of total quality management in order to improve production performance and enhancing the level of customer satisfaction. Procedia Technology, 19, 1016–1022. https://doi.org/10.1016/j.protcy.2015.02.145
Webb, D., Webster, C., & Krepapa, A. (2000). An exploration of the meaning and outcomes of a customer-defined market orientation. Journal of Business Research, 48(2), 101–112. https://doi.org/10.1016/S0148-2963(98)00114-3
Wu, H. C. (2014). The effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions in gaming establishments. Asia Pacific Journal of Marketing and Logistics, 26(4), 540–565. https://doi.org/10.1108/APJML-03-2014-0049
Wu, S. I., & Chan, H. J. (2011). Perceived service quality and self-concept influences on consumer attitude and purchase process: A comparison between physical and internet channels. Total Quality Management and Business Excellence, 22(1), 43–62. https://doi.org/10.1080/14783363.2010.529645
Yu, G. J., Park, M., & Hong, K. H. (2020). A strategy perspective on total quality management. Total Quality Management and Business Excellence, 31(1–2), 68–81. https://doi.org/10.1080/14783363.2017.1412256
Yulianti, F. (2013). Pengaruh kualitas pelayanan terhadap kepuasan nasabah tabungan pada Bank Panin Tbk Kcp A. Yani Banjarmasin. Jurnal SPREAD, 3(2), 87–100. http://journal.stiei-kayutangi-bjm.ac.id/index.php/jibk/article/view/123
Zakuan, N. M., Yusof, S. M., & Laosirihongthong, T. (2008). Reflective review of relationship between total quality management and organizational performance. Proceedings of the 4th IEEE International Conference on Management of Innovation and Technology, ICMIT, 444–448. https://doi.org/10.1109/ICMIT.2008.4654406