Critical Success Factors of Total Quality Management and Their Impact on Performance in the Indonesian Public Service Sector

The paper seeks to empirically investigate the relationships among Critical Success Factors (CSF) of TQM and performance outcomes within one Public Service Sector in Indonesia by drawing on employee and management perceptions. Twentyfour hypotheses regarding the relations of CSF of TQM and performance outcomes have been developed through literature review and the research model was tested using Structural Equation Modeling (SEM) technique. The study utilized survey data obtained from 310 respondent (employee and managers). The results indicate that leadership is a key factor that can drive performance improvement. The other critical success factors that drive services quality are continuous improvement, customer focus, and operational performance. Researchers could use the results of this study to explore variously related hypothesis in more detail. Managers in public organizations must realize that it is imperative for them to enhance their leadership as is it essential for effective quality improvement.