Effect of Quality Practices on Customer Satisfaction and Its Impact on Business Performance of Small Medium Enterprise in Banda Aceh, Indonesia
Journal: THE INTERNATIONAL JOURNAL OF BUSINESS MANAGEMENT AND TECHNOLOGY (Vol.3, No. 6)Publication Date: 2019-12-30
Authors : Nurbismi Endra Gunawan;
Page : 10-18
Keywords : Business Performance; Customer Satisfaction; Quality Practice and Structural Equation Model;
Abstract
This study aims to analyze the effect of implementing total quality management on customer satisfaction and the business performance of small and medium enterprises (SMEs) in the city of Banda Aceh, Indonesia. The research sample of 100 business owners was taken by purposive sampling. Data collection using a questionnaire and then the data were analyzed using simple linear regression statistical tools that are operationalized with AMOS. The study found that quality practice had a positive and significant effect on customer satisfaction and business performance of SMEs. Customer satisfaction mediates the effect of quality practice on business performance.
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