TOTAL QUALITY MANAGEMENT: A STRATEGY TO IMPROVE ORGANIZATIONAL CAPABILITIES

Abstract

This article aims to develop concepts and narrow the gap related to the implementation of TQM and its relationship to product innovation capabilities. The implementation of TQM allows organizations to build competence and competitiveness in product innovation capabilities and performance in the face of technological disruption, namely the industrial revolution 4.0. TQM is the overall management of the organization which makes it superior in all aspects. TQM is a business management strategy that seeks to improve the quality of organizational management. TQM provides a competitive advantage for companies. TQM is widely used by various types of organizations, from the manufacturing industry to the service industry. In industries in Indonesia, the implementation of TQM can be said to be a relatively new business strategy. TQM as proving its effectiveness in improving organizational performance. TQM implementation is related to innovation capability. To understand this relationship, several approaches that encourage the creation of Innovation Capability need to be studied and then hopefully provide a comprehensive framework as a consequence of TQM implementation.