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The Impact of Total Quality Management Practices towards Competitive Advantage and Organizational Performance: Case of Fishery Industry in South Sulawesi Province of Indonesia

This study attempt to test the effect of Total Quality Management (TQM) practices towards competitive advantage and organizational performance. The design of this research has quantitative approach. Data was collected by questionnaire instrument. The unit of analysis is big and medium scale fishery companies. The respondents in this research are the managers of fishery companies. The study utilized primary data which is obtained through questionnaire. The number of population was 66 fishery companies in South Sulawesi Province, Indonesia. Random sampling is used in the study. 55 complete questionnaires were returned as a final sample. Three hypotheses have been developed through literature review and tested using Path Analysis performed by SPSS 18.00 software. The results show that TQM practices have positive and significant effect both on organizational performance and competitive advantage. Competitive advantage has a positive and significant effect on organizational performance. Organizational performance is more influenced by competitive advantage than TQM practices.