An extensive structural model of supply chain quality management and firm performance

Abstract

Purpose: This study was carried out to create a research model investigating the impact of supply chain quality management (SCQM) practices on firm performance. Design/methodology/approach: Based on a comprehensive literature review, the practices were suggested. These SCQM practices will be analyzed and categorized into 4 dimensions: upstream (supplier assessment, supplier quality management), downstream sides of a supply chain (customer focus), internal process (product/service design, process management and logistics) and support practices (top management support, human resource management, information and supply chain integration). The measurement instrument of firm performance was developed including three aspects: operational performance, customer satisfaction and financial performance. Findings: A conceptual framework and a structural model were proposed as well as the development of hypotheses on the paths. Research limitations/implications: It is necessary to test the rationality of this model by empirical studies in different contexts. Originality/value: The research considers integration of quality and supply chain management still remains limited in the literature. Therefore, it is necessary to have a more focused approach in assessing quality management issues within the internal and external supply chain contexts. This study concentrates on the practices which improve quality aspects of supply chain, known as SCQM practices. Proposed structural model in this paper not only fills the voids in the literature but contributes a parsimonious conceptual framework for theory building in SCQM and firm performance. It also expects to offer a useful guidance for measuring and implementing SCQM practices as well as facilitate further studies in this field.

Logistics outsourcing and performance of manufacturing small and medium-sized enterprises in Nairobi

“…Financial measures such as return on assets (ROA) and profitability are objective as they make use of actual figures, whereas the non-financial measures, such as customer satisfaction, use perception and are generally subjective (Tseng & Liao 2015;Yang, Marlow & Lu 2009). Measuring firm performance is not an easy task as one should select the most appropriate measures for the industry, period (long-term and short-term) and firm size to achieve the desired results (Kasie & Belay 2013;Quang et al 2016). As such, because SMEs lack clear management structures, the specific performance metrics selected, should be growth based and should focus on financial liquidity and customer satisfaction (Marchand & Raymond 2008;Raymond et al 2013).…”

“…Firm performance refers to how well a firm achieves its overall goals, both financial and non-financial (Kasie & Belay 2013;Quang et al 2016). Financial measures such as return on assets (ROA) and profitability are objective as they make use of actual figures, whereas the non-financial measures, such as customer satisfaction, use perception and are generally subjective (Tseng & Liao 2015;Yang, Marlow & Lu 2009).…”

Impact of Technology Habitual Domain on Ambidextrous Innovation: Case Study of a Chinese High-Tech Enterprise

“…Leaders and managers should be able to weigh the conflicts between short-term efficiency and long-term adaptability in the process of ambidextrous innovation, and constantly adjust their leadership style to match the management activities [6,75]. As top management support may impact information in daily activities [82], leaders and managers' personal habitual domain may also play an important role in decision-making of innovation strategy.…”

Supply Chain Quality Management Practices, Complementary Firm Assets, Competitive Advantage and Firm Performance

“…SCQM practices ensure quality along the entire supply chain that amplify performance among firms in the network (Vanichchinchaia & Igel, 2011;Quang et al, 2016;Zhong et al, 2016;Farnandes et al, 2017). The externalization of quality to customers and suppliers ensures that quality materials and product enter and exit the supply chain (Robinson & Malhotra, 2005).…”

“…Firms are under pressure to meet their internal and external obligations (Lin, Kuei & Chai 2013). In the process, they must compete through networks and create systems that guarantee long term positive results for their survival (Quang, 2016).Pursuing quality management along supply chain referred to as supply chain quality management (SCQM) brings synergy which facilitates integration among network members . Complementary firm assets (CFA) namely: leadership involvement, human resource management (HRM), trust among stakeholders, quality culture and established ICT facilitate SCQM practices implementation (Truong, Sampaio, Carvalho, Fernandes & An, 2014).…”