The role of top management commitment, employee empowerment and total quality management in production waste management and enhancing firm performance

The company seeks the role of internal function and external partnership to eliminate or reduce the waste generated and its impact on the environment. Internally, Top management needs to commit and actively increase the participation of employees in implementing total quality management and production waste management to enhance business performance. This study surveyed the companies engaged in the industry sector producing finished products while generating waste in the production process. Data collection is carried out using online questionnaires through Google Forms with data analysis using PLS software. One hundred and thirty-six (136) manufacturing companies located in East Java, Indonesia. The results of the data analysis indicated that top management commitment significantly influences firm performance, employee empowerment, and total quality management. Employee empowerment impacts total quality management and production waste management. Total quality management positively influences production waste management and firm performance. In addition, production waste management significantly impacts the firm performance. In addition, top management commitment indirectly affects firm performance through the mediating role of total quality management. However, the mediating effect of production waste management is insignificant in translating top management commitments to firm performance. The result provides a theoretical contribution to developing green supply chain practices and sustainability. Furthermore, the practical contribution provides insight for top management companies that production waste management can improve performance with high management commitment and employee empowerment.