Track: Service Systems and Management

Abstract

Public services in Indonesia are currently facing challenges to meet the increasing expectations of the public amid limitations in budgetary resources, human capital, and institutional capacity. Public services provided by the Ministry of Industry implement Total Quality Management (TQM) and service innovation to enhance service quality and risk management to achieve organizational goals and objectives. This study aims to investigate the structural relationship between TQM, Service Innovation, and Risk Management on the organizational performance of the public sector within the Ministry of Industry. Data collection was conducted through an online survey of 23 public service units within the Ministry of Industry, resulting in 316 collected responses. The data were analyzed using Structural Equation Modeling (SEM). The findings indicate that implementing TQM, service innovation, and risk management in the Ministry of Industry's service units positively and significantly influences organizational performance, aligning with theoretical literature. The most influential dimensions of TQM are culture, processes, and human resources, while leadership is identified as needing improvement. Service innovation and risk management act as partial mediation in influencing the relationship between TQM and organizational performance. The research findings are expected to guide managers and stakeholders in enhancing operational effectiveness and the overall performance of public service organizations in the industrial sector. Additionally, this study contributes to academic literature in the fields of organizational management and the public sector by presenting empirical evidence on the relationships between TQM, service innovation, risk management, and organizational performance.