THE INFLUENCE OF TOTAL QUALITY MANAGEMENT (TQM) ON QUALITY COST EFFICIENCY AND MANAGERIAL PERFORMANCE AND THE IMPLICATIONS FOR COMPANY PERFORMANCE

The study aimed to determine the effect of Total Quality Management (TQM) on Quality Cost Efficiency (QCE) and managerial performance and its implications on company performance. In the research, the researchers involved 100 companies in Indonesia. The analysis used is a structural approach to the Equation Model (SEM) assisted by the Smart PLS application. The results showed that there was a significant positive effect between total quality management, quality cost efficiency, managerial performance, and total management quality on company performance mediated by managerial performance. The amount of the r square of the company’s performance variable is explained by the total quality management, quality cost efficiency, and managerial performance of 88.9%.

The Influence of Total ….. 461 It is what underlies the thought of the need to use Total Quality Management (TQM) because Total Quality Management (TQM) is a structured system with a set of tools, techniques, and philosophies designed to create a corporate culture that focuses on consumers, involving the active participation of employees and continuous quality improvement to meet consumer expectations (Dahlgaard, Reyes, Chen, & Dahlgaard-Park, 2019). Implementation of high Total Quality Management will improve managerial performance and managers will be more motivated to improve performance if highperformance measurement is in the form of required information that provides feedback for improvement and learning (D. Shin & Konrad, 2014).
The quality factor is something that must be considered in providing services. The service quality policy strategy implemented is expected to be able to streamline costs so that complaints from zero defects can be achieved and become work standards, and service quality is maintained (Neyestani, 2017). It underlies the thought of the need for an integrated quality management system such as Total Quality Management (TQM) in order to produce a variety of high-quality products and services (Sader, Husti, & Daróczi, 2019).
The quality of the product or service produced must be balanced with the minimum possible cost and efficient service (Kaur, Singh, & Singh, 2019).
The application of TQM is closely related to quality (Nguyen & Nagase, 2019). It provides the basis for quality management and is an alternative in ensuring customer satisfaction. TQM provides a structure (framework) and tools for quality management.
Throughout the operation, there is a continuous effort focused on quality areas (Pellegrino, Costantino, & Tauro, 2020). The concept of quality-oriented towards customer satisfaction in an integrated manner and reasonable quality costs should be established as one of the primary objectives. It is implementing and planning business and products and measuring the performance of enterprises' marketing, engineering, production, industrial relations, and service functions (Leu & Lee, 2016).
Through the implementation of total quality management (TQM), companies are expected to control costs by making continuous improvements to the production process, product quality, human resources, services, and the environment (Psomas & Jaca, 2016). It can be done by reducing products that are free from damage to avoid repeating the production process, which causes the company's operational costs to increase. Chams et al.,  Research conducted by Abbas (2020) TQM has a positive and robust effect on service effectiveness, while cost efficiency has an effect but is not significant. According to Donate et al., (2020)  The concept of Total Quality Management (TQM), aside from being a management philosophy and principles, is also a set of strategies and practices that can be used to improve a company's competitiveness and performance through meeting customer needs and satisfaction (Jalilvand, Khazaei Pool, Balouei Jamkhaneh, & Tabaeeian, 2018). From various opinions and definitions from experts, it can be explained that Total Quality Management (TQM) is a philosophical approach using various aspects of management in improving the quality and productivity of products, services, organizations, employees/labor, and their environment, which is always oriented towards to customers/society as well as consistent and continuous improvement.
In measuring the Total Quality Management of an organization, the indicators used based on Al-Dhaafri et al., (2016) are as follows. The Influence of Total ….. 464 products and with the opportunity cost of lost production and sales time as a result of poor quality. Based on the above definition above, it can be concluded that the company incurred quality costs due to defective goods; in other words, these costs are incurred to improve product quality or achieve predetermined standards. The following are quality cost efficiency indicators according to:

Managerial Performance
Whitley (2019) defines managerial performance as follows: "A manager who produces performance by mobilizing talents and abilities, as well as several other people's efforts that are different in their area of authority." According to Abubakar et al., (2019) managerial performance is the individual performance of organizational members in managerial activities. Managerial performance results from an effective managerial activity process: planning, implementation, administration, accountability reports, coaching, and monitoring processes. Furthermore, managerial performance, according to Almatrooshi et al., (2016) is how effectively and efficiently managers have worked to achieve organizational goals.
Companies need managerial performance to survive against competing companies.
Managerial performance is a factor used to increase organizational effectiveness.
Managerial performance can be achieved if the organization as a whole or the managers of business units together have achieved the goals that have been set. The good managerial performance will result in effectiveness that strives for profit for the company or organization (Gerrish, 2016). Thus, it can be concluded that managerial performance is an achievement achieved by a company/organization through a series of processes or frameworks, which involves a group of people as a business unit to achieve goals during a specific period.

Company Performance
Firm performance is defined as a description of the company's ability to benefit from the company's goals. Firm performance is a measurement of the company's achievement within a certain period. Company performance is an overall success of the company in achieving the strategic goals that have been set through selected strategic initiatives (Nuraini, 2021). Company performance is defined as its ability to achieve its goals through efficient and effective use of resources. It describes how far a company has achieved its results after being compared with previous performance, previous performance, and benchmarking performance of other organizations and to what extent it has achieved the goals and targets that have been set (Zabri, Ahmad, & Wah, 2016). The results of research by Saha et al., (2017) found that organizational agility and the effectiveness of human resources affect organizational performance and competitive ability.
The company performance indicators, according to Yokokawa and Mizoguchi, (2016)  approach assisted by smart PLS applications (Yannis & Nikolaos, 2018). The stages of data analysis in this research are:

Validity and Reliability Test
Validity and reliability tests are carried out to ensure that the measurement used is feasible to be used as a measurement (valid and reliable). Testing the validity and reliability can be seen from: Convergent Validity is an indicator assessed based on the correlation between the item score/component score and the construct score, which can be seen from the standardized loading factor, which describes the magnitude of the correlation between each measurement item (indicator) its construct. The individual reflexive measure is said to be high if the correlation > 0.7.

Inner Model Analysis
The analysis of the inner model in testing using Smart PLS is done by testing the hypothesis. Testing the hypothesis can be seen from the t-statistical value and probability value. To test the hypothesis using statistical values, for alpha 5%, the t-statistic value used is 1.96. In contrast, the beta score is used to determine the direction of the influence of the relationship between variables. The criteria for acceptance/rejection of the hypothesis are: Ha= The Influence of Total ….. 468

Validity test
Validity test is used to measure the validity or validity of a questionnaire. In this research, validity testing is carried out using convergent validity and AVE. The instrument is declared valid if the AVE value is > 0.05 and the outer loading value is (> 0.6).   The Influence of Total ….. 471

The Effect of Total Quality Management (X1) on Company Performance (Y)
The results of testing the hypothesis of total quality management on company performance obtained a positive beta score (

The Effect of Quality Cost Efficiency (Z1) on Company Performance (Y)
The results of testing the hypothesis of quality cost efficiency on company performance obtained a positive beta score ( The Influence of Total ….. 472 research conducted by Xie et al., (2019) , which states that the cost of quality activities consisting of prevention activities, control activities, internal failure activities, and external failure activities has a significant effect on company performance.

The Effect of Managerial Performance (Z2) on Company Performance (Y)
The results of testing the managerial performance hypothesis on company performance obtained a positive beta score (0.246) with a T statistic of 2.644 (p>1.96) and p values of 0.008 (p<0.05), resulting in a significant positive effect between managerial performance on company performance. The better the company's managerial performance, the better the company's performance. The company's organizational performance is largely influenced by the performance of employees, especially managers. A performance measurement system is needed to improve company performance to provide managers with relevant information for strategic decision-making (Appelbaum, Kogan, Vasarhelyi, & Yan, 2017). Research by Hernandez-Espallardo et al., (2018) has a positive relationship between job-related information and managerial performance. He stated that comprehensive performance information from a performance measurement system would provide more specific and relevant information for the decision-making process, thereby improving managerial performance. Mokhtar et al., (2016) have provided empirical evidence to state that perceived environmental uncertainty affects the characteristics of management accounting information and firm performance.

The Effect of Total Quality Management (X1) on Quality Cost Efficiency (Z1)
The results of testing the hypothesis of total quality management on quality costefficiency obtained a Positive Beta score (0.806) with a T statistic of 28.235 (p> 1.96) and p values of 0.000 (p <0.05), resulting in a significant positive effect between total quality management on quality cost efficiency. The better the implementation of total quality management applied by the company, the better the cost efficiency of the company's quality. TQM provides a structure (framework) and tools for quality management so that throughout the operation, there is a continuous effort focused on the quality group of areas.
The concept of quality-oriented to customer satisfaction in an integrated manner and reasonable quality costs should be established as one of the primary objectives of implementing and planning business and product and measuring the performance of the marketing, engineering, production, industrial relations, and service functions of the The Influence of Total ….. 473 enterprise. The principle of TQM in achieving its goals is to make continuous quality improvements. The companies can increase their profits through two channels (Bakotić & Rogošić, 2015). The first path is the market channel, where the company can improve its competitive position. Its market share is more significant and the selling price can be higher. These things lead to an increase in income so that profit earned is even greater. In

The Effect of Total Quality Management (X1) on Managerial Performance (Z2)
The results of testing the hypothesis of total quality management on the managerial performance obtained a positive beta score (0.938) with a T statistic of 94,585 (p>1.96) and p values of 0.000 (p<0.05), resulting in a significant positive effect between total quality management on managerial performance. The better the total quality management (TQM) is applied, the more it will also impact the managerial performance of the company.
Division managers play an essential role in communicating organizational activities carried out by fellow managers and those passed on to subordinates. Communication between managers and subordinates is strongly influenced by the perception of each manager about the information about TQM received from his superiors and fellow division managers. Shin (2017) argues that perception in terms of user cognition through introduction and expertise in information systems has a relationship with managers' perceptions and will impact performance. Likewise, the better the manager's perception through the introduction and expertise of total quality management will affect the manager's performance. This research aligns with research conducted by Al-Dhaafri et al., (2016) that quality management affects managerial performance.

The Effect of Total Quality Management (X1) Mediated by Quality Cost Efficiency (Z1) on Company Performance (Y)
The results of testing the hypothesis of total quality management mediated by quality cost efficiency on company performance obtained a positive beta score ( The Influence of Total ….. 474 positive effect between total quality management on company performance is mediated by quality cost efficiency. The better the total quality management carried out by the company, the more it will impact the company's performance and be strengthened by quality cost efficiency. Companies that have good competitiveness are ensured that their performance will also improve; if they have good management quality, the company also carries out various innovation strategies so that consumers can always accept the company because it can provide the best service and product quality following consumer desires. The results of this study are consistent with research by Malik et al., (2016) which proves that there is a significant relationship between Total Quality Management (TQM) on competitiveness, Total Quality Management on company performance, and competitiveness on company performance. Shafiq et al., (2017) suggest that companies in Turkey have invested their resources in adapting and implementing TQM. TQM improves processes within the company to improve product quality and have a positive impact on performance.

The Effect of Total Quality Management (X1) Mediated by Managerial Performance (Z2) on Company Performance (Y)
The results of testing the hypothesis that total quality management mediated managerial performance on company performance obtained a positive beta score (0.230) with a T statistic of 2.652 (p>1.96) and p values of 0.000 (p<0.05), resulting in a significant positive effect between total quality management on performance firm is mediated by managerial performance. The better the total quality management implemented by the company and the better the managerial performance of the company, the more it will improve the company's performance.

CONCLUSION
Based on the research and discussion that has been carried out, it can be concluded that: a) There is a significant positive effect between total quality management on company performance; b) There is a significant positive effect between quality cost efficiency on company performance; c) There is a significant positive influence between managerial performance on company performance; d) There is a significant positive effect between managerial performance and company performance; e) There is a significant positive effect between total quality management on quality cost-efficiency; f) There is a significant positive effect between total quality management on managerial performance; g) There is a significant positive effect between total quality management on company performance mediated by quality cost efficiency; h) There is a significant positive effect between total quality management on company performance mediated by managerial performance.
The results of the r square of the company's performance variable are explained by the total quality management, quality cost efficiency, and managerial performance of 88.9%. It is recommended for further research.