Influence of TQM on increasing sustainable competitive advantage with transformational leadership as a mediation variable

Abstract

The objective of this study was to determine and analyze the impact of TQM, Transformational Leadership (TL), and Executive Ability (EA) on improving sustainable competitive advantage (SCA) in MSMEs in Banten Province based on local leading potential. The method of distributing questionnaires is used in this study to collect primary data. This study's population consisted of all owners and managers of MSMEs in Banten Province. In contrast, the sample in this study is formed of the owners and managers of MSMEs of Local Leading Potential in Banten Province. Purposive sampling was being used in the study, as well as Warp PLS V. 7.0 and SPSS Version 25 test equipment. The findings of this study were as follows: (1) TQM had a significant positive effect on TL and SCA, but not on EA. (2) TL has a statistically significant positive effect on SCA and EA. (3) EA has a statistically significant positive effect on SCA. (4) TL mediates the effect of TQM on SCA and TQM on EA, and (5) EA does not mediate the effect of TQM on SCA. VAF (Variance Accounted For) has been used to calculate mediation effects.