The influence of quality management on organization performance: service quality and product characteristics as a medium

Abstract

PurposeThe effect of the quality management system on service performance. The mediating effect of service quality on the influence of the quality management system on service performance. The mediating effect of product characteristics on the influence of the quality management system on service performance.Design/methodology/approachThe analysis unit of this research were the service organizations/fields presented by each of the experts working in the consulting companies/business entities of construction planners that have Grade 4 qualification and have been the members of Inkindo registered since 2016 and located in the territory of Indonesia. The sample target were the organizations/fields of the consulting companies represented by the permanent experts or skilled manpower working accordingly with the field of construction planning services. This becomes important, considering that the position of experts is crucial to the success and quality of the management of construction planner consulting services. Determination of the use of the sample was based on the rule of thumb in SEM, which amounted to 10 × 20 indicators or 200 respondents.FindingsThere is significant influence between the variables of the quality management system to service quality and company performance, but there is no significant effect on product characteristics. The analysis also showed that mediating effects to service quality or characteristics of the product were not found on the influence of the quality management system to company performance.Originality/valueThe quality management system focuses on earning users’ satisfaction by applying basic principles to the management of good companies. The scope of a broad management system not only revolves around the quality of products making the quality management system very well applied in various types of companies or organizations, but it can also be applied to organizing-related services to customers.