THE STRUCTURAL RELATIONSHIP BETWEEN IATF 16949, QUALITY CULTURE, AND COMPETITIVE ADVANTAGE IN ENHANCING OPERATIONAL PERFORMANCE (CASE STUDY: AN AUTOMOTIVE COMPANY IN JABABEKA INDUSTRIAL ESTATE)

Abstract

To remain competitive in the global automotive market, companies must prioritize high-quality production, operational efficiency, and cost-effectiveness through standardized quality management systems. This research investigates the impact of IATF 16949 implementation on operational performance at an automotive firm in the Jababeka Industrial Estate, Cikarang. By employing a quantitative approach and Structural Equation Modeling (SEM) via SmartPLS 4, the study analyzed data from 68 respondents to explore the mediating roles of quality culture and competitive advantage. The findings reveal that IATF 16949 significantly enhances operational performance both directly and indirectly. Specifically, quality culture and competitive advantage function as vital mediators that bridge system implementation with operational excellence. These results suggest that integrating international standards with a robust quality culture and strategic positioning is essential for long-term manufacturing success. This study contributes an empirical model for system-and-culture-based management in the automotive sector, suggesting that future studies adopt a longitudinal perspective across broader industries.