Research on Continues Mediation: Employee Behavior and TQM Practice as ISO 9000 Strategy to Improve Performance of Manufacturing Company in East Java, Indonesia

The purpose of this research is to evaluate the contribution of establishing ISO 9000 towards the performance of manufacturing company, and also examine and describe the employee behavior and TQM (Total Quality Management) Implementation as continue meditation in a structural model. This research examined 248 large scale manufactures, which are still active and ISO 9001 certified. The research design is experimental quantitative by proving hypothesis. The research respondent is Representative Management of the company. The analysis is using Structural Equation Modeling to examine and expose the effect of research variables. The urgent of this research based on the significant role of the human resources, which is Employee Behavior as the company strategy to reach the affectivity of TQM. It is necessary to be investigated to answer the theoretical studies of ISO 9000 in order to improve the performance of the company. The study highlights the mediating role of employee behavior and TQM implementation as the research originality and novelty in the field of operational management referring to the purpose of applying ISO 9000, which is to improve the performance of manufacturing company. The results proved that the establishing of ISO 9000 have not been able to directly improve the performance of manufacturing company. In this research, it was found that Quality System, which is the establishment of documentation system in regulating ISO 9000, was able to give positive competence for the employees in running the quality work program (TQM practice) that in the end would improve the performance of the company. Keywords: ISO 9000, Employee behavior, TQM practice, Manufacture performance, Indonesia