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All Journal Gadjah Mada International Journal of Business The South East Asian Journal of Management
Ainin Sulaiman
Department of Marketing and Information Systems, Faculty of Business and Accountancy, University of Malaya
Economics, Econometrics & Finance

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Mediation Analysis Using the Hierarchical Multiple Regression Technique: A Study of the Mediating Roles of World-Class Performance in Operations Ciptono, Wakhid S.; Ibrahim, Abdul Razak; Sulaiman, Ainin
Gadjah Mada International Journal of Business Vol 12, No 2 (2010): May - August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

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Abstract

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), themediating 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.
Sustainability of TQM Implementation Model In The Indonesia’s Oil and Gas Industry: An Assessment of Structural Relations Model Fit Ciptono, Wakhid Slamet; Ibrahim, Abdul Razak; Sulaiman, Ainin; Syed A. Kadir, Sharifah Latifah
Gadjah Mada International Journal of Business Vol 13, No 1 (2011): January-April
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

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This study purposively is to conduct an empirical analysis of the structural relations among  critical factors of quality management practices (QMPs), world-class company practice (WCC), operational excellence practice (OE), and company performance (company non-financial performance or CNFP and company financial performance or CFP) in the oil and gas companies operating in Indonesia. The current study additionally examines the relationships between QMPs and CFP through WCC, OE, and CNFP (as partial mediators) simultaneously. The study uses data from a survey of 140 strategic business units (SBUs) within 49 oil and gas contractor companies in Indonesia.  The findings suggest that all six QMPs have positive and significant indirect relationships on CFP through WCC and CNFP. Only four of six QMPs have positive and significant indirect relationships on CFP through OE and CNFP. Hence, WCC, OE, and CNFP play as partial mediators between  QMPs and CFP. CNFP has a significant influence on CFP. A major implication of this study is that oil and gas managers need to recognize the structural relations model fit by developing all of the research constructs simultaneously associated with a comprehensive TQM practice. Furthermore, the findings will assist oil and gas companies by improving CNFP, which is very critical to TQM, thereby contributing to a better achievement of CFP. The current study uses the Deming’s principles, Hayes and Wheelwright dimensions of world-class company practice, Chevron Texaco’s operational excellence practice, and the dimensions of company financial and non-financial performances.  The paper also provides an insight into the sustainability of TQM implementation model and their effect on company financial performance in oil and gas companies in Indonesia.       
The Mediation Effect of Trusting Beliefs on The Relationship between Expectation-Confirmation and Satisfaction with The Usage of Online Product Recommendation Ashraft, Muhammad; Jaafart, Noor Ismawati; Sulaiman, Ainin
The South East Asian Journal of Management Vol. 10, No. 1
Publisher : UI Scholars Hub

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Abstract

Online Product Recommendations (OPRs) are increasingly available to online customers as a value-added self-service in evaluating and choosing a product. Research has highlighted several advantages that customers can gain from using OPRs. However, the realization of these advantages depends on whether and to what extent customers embrace and fully utilise them. The relatively low OPR usage rate indicates that customers have not yet developed trust in OPRs’ performance. Past studies also have established that satisfaction is a valid measure of system performance and a consistent significant determinant of users’ continuous system usage. Therefore, this study aimed to examine the mediation effect of trusting beliefs on the relationship between expectation-confirmation and satisfaction. The proposed research model is tested using data collected via an online survey from 626 existing users of OPRs. The empirical results revealed that social psychological beliefs (perceived confirmation and trust) are significant contributors to customer satisfaction with OPRs. Additionally, trusting beliefs partially mediate the impact of perceived confirmation on customer satisfaction. Moreover, this study validates the extensions of the interpersonal trust construct to trust in OPRs and examines the nomological validity of trust in terms of competence, benevolence, and integrity. The findings provide a number of theoretical and practical implications.
Co-Authors Abdul Razak Ibrahim Ashraft, Muhammad Jaafart, Noor Ismawati Sharifah Latifah Syed A. Kadir Wakhid S. Ciptono Wakhid Slamet Ciptono