Developing the European Foundation for Quality Management for MSME Performance Measurement (A Case Study of MSME Managed by ‘Preman Super’ Community in Malang City)

Abstract

Preman Super, which stands for Perempuan Mandiri Sumber Perubahan (Independent Women as a Source of Change), is a community of housewives and informal workers which aims to empower the community members to become independent women. This community embraces MSMEs. The MSMEs run by the Preman Super community are growing businesses in a competitive marketplace so that it requires improvement efforts such as through performance appraisal or evaluation. This study used the European Foundation for Quality Management (EFQM) to measure the performance of the MSME. The EFQM model is based on two criteria, namely enablers and results. Enablers consist of leadership, people, strategy, partnership and resources, processes, and products and services, while results consist of customer results, people results, society results, and business results. This study modified the scoring matrix of RADAR by adding key performance indicators (KPI) because the dimensional targets of the criteria of results can be evaluated if each sub-criterion has a key performance indicator (KPI). The EFQM model with a modified RADAR scoring matrix was used as a performance measurement tool for MSMEs managed by Preman Super community. The final score of the MSME performance was 270, meaning that the company was in phase II, i.e., a process-oriented organization.