Quality Management Systems in SMEs: are they considered important?
(a*)Muhammad Imron Rosyidi, (b) Maria Theresia Sri Budiastuti, (c) Mugi Rahardjo, (d) Totok Gunawan

(a) Doctoral Program in Environmental Science, Graduate Program, Universitas Sebelas Maret, Jl. Ir. Sutami 36 A, Kentingan, Surakarta, 57126, Indonesia.
(a) Department of Industrial Engineering, Universitas Muhammadiyah Magelang. Jl. Bambang Soegeng, Mertoyudan, Magelang 56172, Indonesia.
(b) Faculty of Agriculture, Universitas Sebelas Maret, Jl. Ir. Sutami 36 A, Kentingan, Surakarta, 57126, Indonesia.
(c) Departement of Economic Development, Faculty of Economic and Business. Universitas Sebelas Maret, Jl. Ir. Sutami 36 A, Kentingan, Surakarta, 57126, Indonesia.
(d) Faculty of Geography Universitas Gadjah Mada. Bulaksumur, Yogyakarta 55281, Indonesia.

*Corresponding author, e-mail : m_imron_rosyidi[at]ummgl.ac.id

Abstract

This study aims to investigate the motives of implementing a quality management system in small and medium industries (IKM) associated with process performance. A qualitative approach is used with case studies in IKM which have product certification. A valid and reliable questionnaire instrument was used to collect data, equipped with direct observation and document analysis. Respondents in the study were representatives of management, head of the production, head of quality control, and head of purchasing. The research findings show the internal motives and external motives have encouraged SMIs to apply QMS. The internal motives that we found were corporate commitment and profit orientation for the company, and the external motive was market regulation. Statistical analysis shows the value of the correlation coefficient of the dimensions of company commitment, company profits, and market regulation has a positive correlation, meaning that the increasing commitment of the company to implementing QMS, it will improve process performance. Increased process performance will provide company benefits. Furthermore, the tighter the market regulation for a product standard means that IKM must improve process performance in order to meet these standards

Keywords: internal motive, external motive, process performance, quality management system.

Topic: Economics