This study attempt to test the effect of Total Quality Management (TQM) practices
towards competitive advantage and organizational performance. The design of this
research has quantitative approach. Data was collected by questionnaire instrument. The
unit of analysis is big and medium scale fishery companies. The respondents in this
research are the managers of fishery companies. The study utilized primary data which is
obtained through questionnaire. The number of population was 66 fishery companies in
South Sulawesi Province, Indonesia. Random sampling is used in the study. 55 complete
questionnaires were returned as a final sample. Three hypotheses have been developed
through literature review and tested using Path Analysis performed by SPSS 18.00
software. The results show that TQM practices have positive and significant effect both
on organizational performance and competitive advantage. Competitive advantage has a
positive and significant effect on organizational performance. Organizational
performance is more influenced by competitive advantage than TQM practices.