| Summary: | The changing environment in an organization is forcing the
organization to find a plan of integrated management framework
and adequate performance measurement. Failure to plan
basically means planning failure for the business. Finding the
critical factors of quality management practices (QMP), the
mediating roles of the contextual factors of world-class performance
in operations (i.e., world-class company practices or
WCC, operational excellence practices or OE, company nonfinancial
performance or CNFP), and the company financial
performance would enable the company to facilitate the
sustainability of TQM implementation model.
This empirical study aims to assess how TQM�a holistic
management philosophy initially developed by W. Edward
Deming, which integrates improvement strategy, management
practices, and organizational performance�is specifically implemented
in the oil and gas companies operating in Indonesia.
Relevant literature on the TQM, the world-class performance in
operations (world-class company and operational performance),
the company performance (financial and non-financial performances), and the amendments of the Law of the Republic of
Indonesia concerning the oil and gas industry, and related
research on how the oil and gas industry in Indonesia develops
sustainable competitive advantage and sustainable development
programs are reviewed in details in our study. The findings
from data analysis provide evidence that there is a strong
positive relationship between the critical factors of quality
management practices and the company financial performance
mediated by the three mediating variables, i.e., world-class
company practices, operational excellence practices, and company
non-financial performance.
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