The Impact of Total Quality Management on Employee Performance Through Innovative Work Behavior and Dynamic Absorptive Capacity in Salatiga Manufacturing

Abstract

Insufficiently trained personnel may reduce productivity in the industrial sector, resulting in labour reductions. This study examines the influence of total quality management (TQM) on employee performance, focusing on the mediating role of innovative work behaviours and dynamic absorptive abilities. It explicitly evaluates if these two characteristics enhance the impact of TQM on augmenting employee performance. To achieve this purpose, a conceptual model was constructed and empirically validated, utilising data from 114 employees at a manufacturing firm in Salatiga. The suggested links were examined via partial least squares structural equation modelling (PLS-SEM). The findings indicate that Total Quality Management positively affects employee performance. Moreover, inventive work behaviour and dynamic absorptive capacity substantially mediate this link, indicating that both mechanisms bolster TQM's efficacy in improving employee performance. The results present significant managerial implications. Organisations should foster a working culture that encourages creativity, initiative, and inventive problem-solving among employees. Furthermore, senior management ought to promote ongoing education by facilitating employees in the acquisition, dissemination, and application of new knowledge in their tasks. These methods can enhance operational efficiency and organisational performance.