Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)

Indonesia’s Defense Industry: Influences of TQM Practices on Employee Productivity with the Mediating Role of Job Satisfaction

Authors
Nunung Kristiana1, *, Risna Wijayanti2, Djumilah Hadiwidjojo3
1,2,3Faculty of Economic and Business, Universitas Brawijaya, Indonesia
*Corresponding author. Email: nuna.c631@gmail.com
Corresponding Author
Nunung Kristiana
Available Online 28 January 2022.
DOI
10.2991/aebmr.k.220128.015How to use a DOI?
Keywords
Employee Productivity; Job Satisfaction; TQM Practice; Defense Industry
Abstract

This study examined the effects of TQM practices on employee productivity mediated by job satisfaction in Indonesia’s defense industry using PT Pindad as an example. High employee productivity reflects sought-after product quality—a crucial, desired aspect in this industry, considering that the product’s function is closely related to human life. For business entities, such productivity is vital because it is part of the internal economic affairs of a company that shapes the profitability measure. The study also measured the mediating effect of Job Satisfaction (Z) in the causal relationship between TQM Practices (X) and Employee Productivity (Y). For this purpose, questionnaires were distributed to 160 permanent employees. Then, partial least squares (PLS) were employed to test the proposed hypotheses. The results showed that variable Z (Job Satisfaction) mediated the effect of variable X (TQM Practices) on variable Y (Employee Productivity), with a p-value = 0.004 < 0.05. Further, variable X (TQM Practices) significantly affects variable Y (Employee Productivity) and variable Z (Job Satisfaction), as evident from their respective p-values (0.000 < 0.05).

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
28 January 2022
ISBN
978-94-6239-524-4
ISSN
2352-5428
DOI
10.2991/aebmr.k.220128.015How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Nunung Kristiana
AU  - Risna Wijayanti
AU  - Djumilah Hadiwidjojo
PY  - 2022
DA  - 2022/01/28
TI  - Indonesia’s Defense Industry: Influences of TQM Practices on Employee Productivity with the Mediating Role of Job Satisfaction
BT  - Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)
PB  - Atlantis Press
SP  - 106
EP  - 112
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220128.015
DO  - 10.2991/aebmr.k.220128.015
ID  - Kristiana2022
ER  -