A replication and extension of quality management into the supply chain

Abstract As competition moves beyond a single firm into the supply chain, researchers are beginning to explore quality management (QM) in a supply chain context. The literature suggests that supply chain management (SCM) consists of internal practices, which are contained within a firm, and external practices, which cross organizational boundaries integrating a firm with its customers and suppliers. Supplier quality management and customer focus are two QM practices that are also clearly in the domain of SCM. In this study we investigate how these two supply chain management-related quality practices lead to improved performance and examine the practices that precede and mediate those relationships. In doing so, we replicate and extend the relationships among the QM practices and their effects on firm performance suggested in Kaynak [Kaynak, H., 2003. The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management 21, 405–435] using survey data gathered from firms operating in the U.S. The inclusion of customer focus and supplier quality management in the QM model supports the importance of internal and external integration for quality performance. Implications of the results for researchers and practitioners are discussed, and further research implications are suggested.

[1]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[2]  Batoul Modarress,et al.  Just-in-Time Purchasing , 1990 .

[3]  L. J. Porter,et al.  Identification of the Critical Factors of TQM , 1996 .

[4]  K. Jöreskog,et al.  LISREL 8: New Statistical Features , 1999 .

[5]  N. Venkatraman,et al.  Measurement of Business Economic Performance: An Examination of Method Convergence , 1987 .

[6]  Roger G. Schroeder,et al.  A FRAMEWORK FOR QUALITY MANAGEMENT RESEARCH AND AN ASSOCIATED MEASUREMENT INSTRUMENT , 1994 .

[7]  S. Vickery,et al.  Sources and Outcomes of Competitive Advantage: An Exploratory Study in the Furniture Industry , 1994 .

[8]  M. S. Putterill,et al.  Empirical Analysis of Quality Improvement in Manufacturing , 1994 .

[9]  Stanley E. Fawcett,et al.  The Effect of People on the Supply Chain World: Some Overlooked Issues , 2005 .

[10]  W. Edwards Deming,et al.  Out of the Crisis , 1982 .

[11]  S. Vickery,et al.  The effects of internal versus external integration practices on time-based performance and overall firm performance , 2004 .

[12]  E. J. Flynn,et al.  Synergies between supply chain management and quality management: emerging implications , 2005 .

[13]  Eric W. K. Tsang,et al.  Replication and Theory Development in Organizational Science: A Critical Realist Perspective , 1999 .

[14]  Daniel R. Krause.  Supplier Development: Current Practices and Outcomes , 1997 .

[15]  Mark Gershon,et al.  Which TQM Practices Really Matter: An Empirical Investigation , 1997 .

[16]  Phillip L. Carter,et al.  Supplier/Customer Inventory Relationships Under Just In Time , 1990 .

[17]  Siah Hwee Ang,et al.  Increasing Replication for Knowledge Accumulation in Strategy Research , 2003 .

[18]  Leyland Pitt,et al.  Re-Inquiring and Progressing People as Products: A Research Agenda for New Media, New Methods and New Theories , 2002 .

[19]  Paula C. Morrow,et al.  The measurement of TQM principles and work-related outcomes , 1997 .

[20]  D. Dillman.  Mail and telephone surveys : the total design method , 1979 .

[21]  K. Tan,et al.  Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance , 2005 .

[22]  Hale Kaynak.  Total Quality Management and Just-in-Time Purchasing: Their Effects on Performance of Firms Operating in the U.S. , 1997 .

[23]  I. Ugboro,et al.  Top management leadership, employee empowerment, job satisfaction, and customer satisfaction in TQM organizations: an empirical study , 2000 .

[24]  M. Frohlich,et al.  Arcs of integration: an international study of supply chain strategies , 2001 .

[25]  I. Chen,et al.  Towards a theory of supply chain management: the constructs and measurements , 2004 .

[26]  W. Edwards Deming,et al.  The New Economics for Industry, Government, Education , 2018 .

[27]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[28]  Roger G. Schroeder,et al.  The Impact of Quality Management Practices on Performance and Competitive Advantage , 1995 .

[29]  P. Crosby.  Quality Without Tears , 1984 .

[30]  Jennifer L. Hartnett,et al.  Managing Quality: The Strategic and Competitive Edge , 1988 .

[31]  Thiagarajan Ravichandran,et al.  An innovation diffusion model of TQM implementation , 2001, IEEE Trans. Engineering Management.

[32]  W. Martin.  Effects of Scaling on the Correlation Coefficient: Additional Considerations , 1978 .

[33]  Elazar J. Pedhazur,et al.  Measurement, Design, and Analysis: An Integrated Approach , 1994 .

[34]  William R. Darden,et al.  Causal Models in Marketing , 1980 .

[35]  I. Sila,et al.  Examination and comparison of the critical factors of total quality management (TQM) across countries , 2003 .

[36]  J. R. Dixon,et al.  A taxonomy of manufacturing strategies revisited , 2001 .

[37]  Daniel R. Krause.  The antecedents of buying firms' efforts to improve suppliers , 1999 .

[38]  Cornelia Dröge,et al.  Effect of just-in-time purchasing relationships on organizational design, purchasing department configuration, and firm performance , 1997 .

[39]  Bhanu S. Ragu-Nathan,et al.  The impact of supply chain management practices on competitive advantage and organizational performance , 2006 .

[40]  D. Aaker,et al.  The Strategic Role of Product Quality , 1987 .

[41]  Karl G. Jöreskog,et al.  Lisrel 8: Structural Equation Modeling With the Simplis Command Language , 1993 .

[42]  Kenneth K. Boyer,et al.  MANUFACTURING PROACTIVENESS AND PERFORMANCE , 1994 .

[43]  T. Cook,et al.  Quasi-experimentation: Design & analysis issues for field settings , 1979 .

[44]  M. Dunn,et al.  Conducting Marketing Science: The Role of Replication in the Research Process , 2000 .

[45]  D. Samson,et al.  EXPLODING THE MYTH: DO ALL QUALITY MANAGEMENT PRACTICES CONTRIBUTE TO SUPERIOR QUALITY PERFORMANCE? , 1999 .

[46]  Richard J. Schonberger,et al.  “Just‐In‐Time” Purchasing Can Improve Quality , 1984 .

[47]  Goedde Ag,et al.  International diversification and US regulatory controls in the pharmaceutical industry. , 1982 .

[48]  Hale Kaynak,et al.  The relationship between total quality management: practices and their effects on firm performance , 2003 .

[49]  Craig J. Russell,et al.  Moderated Regression Analysis and Likert Scales: Too Coarse for Comfort , 1992 .

[50]  Stephan M. Wagner,et al.  Buyer-Supplier Collaboration in Product Development Projects , 2005 .

[51]  Richard P. Bagozzi,et al.  Assessing Construct Validity in Organizational Research , 1991 .

[52]  Roger G. Schroeder,et al.  A Theory of Production Competence , 1989 .

[53]  M. Primo,et al.  An exploratory study of the effects of supplier relationships on new product development outcomes , 2002 .

[54]  R. Handfield,et al.  Quality-Driven Change and its Effects on Financial Performance , 1998 .

[55]  Paul M. Swamidass,et al.  Manufacturing strategy, environmental uncertainty and performance: a path analytic model , 1987 .

[56]  S. Mulaik,et al.  EVALUATION OF GOODNESS-OF-FIT INDICES FOR STRUCTURAL EQUATION MODELS , 1989 .

[57]  Kee-hung Lai,et al.  Effects of quality management and marketing on organizational performance , 2005 .

[58]  Roberto Filippini,et al.  A replication study of a theory of quality management underlying the Deming management method: insights from an Italian context , 1998 .

[59]  S. Sethi,et al.  Relating strategy and structure to flexible automation: A test of fit and performance implications , 1993 .

[60]  John M. Neale,et al.  Science and behavior : an introduction to methods of research / John M. Neale , 1973 .

[61]  David W. Gerbing,et al.  An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment , 1988 .

[62]  S. Vickery,et al.  Production Competence and Business Strategy: Do They Affect Business Performance? , 1993 .

[63]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[64]  M. Aldenderfer,et al.  Cluster Analysis. Sage University Paper Series On Quantitative Applications in the Social Sciences 07-044 , 1984 .

[65]  G. Bohrnstedt,et al.  Social Measurement: Current Issues , 1981 .

[66]  John C. Anderson,et al.  A Path Analytic Model of a Theory of Quality Management Underlying the Deming Management Method: Preliminary Empirical Findings* , 1995 .

[67]  Edward G. Carmines,et al.  Reliability and Validity Assessment , 1979 .

[68]  Jayant V. Saraph,et al.  An Instrument for Measuring the Critical Factors of Quality Management , 1989 .

[69]  Jayanth Jayaram,et al.  Supply-Based Strategies, Human Resource Initiatives, Procurement Leadtime, and Firm Performance , 1998 .

[70]  Vincent G. Duffy,et al.  Total quality management: An empirical test for mediation effect , 2001 .

[71]  Darryl D. Wilson,et al.  An Empirical Investigation of the Malcolm Baldrige National Quality Award Causal Model , 2000, Decis. Sci..

[72]  T. C. Powell.  Total Quality Management as Competitive Advantage , 1995 .

[73]  Diana L. Day,et al.  The Product Portfolio and Profitability—A PIMS-Based Analysis of Industrial-Product Businesses , 1982 .

[74]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[75]  Lawrence M. Corbett,et al.  An international study of quality improvement approach and firm performance , 1997 .

[76]  A. Ehrenberg,et al.  The Design of Replicated Studies , 1993 .

[77]  Jeffrey K. Liker,et al.  Bringing Japanese Continuous Improvement Approaches to U.S. Manufacturing: The Roles of Process Orientation and Communications* , 1995 .

[78]  Douglas D. Moesel,et al.  CONSTRUCT VALIDITY OF AN OBJECTIVE (ENTROPY) CATEGORICAL MEASURE OF DIVERSIFICATION STRATEGY , 1993 .

[79]  Louis Guttman,et al.  A basis for analyzing test-retest reliability , 1945, Psychometrika.

[80]  M. Malhotra,et al.  Defining the concept of supply chain quality management and its relevance to academic and industrial practice , 2005 .

[81]  L. Crocker,et al.  Introduction to Classical and Modern Test Theory , 1986 .

[82]  J. Hackman,et al.  Total Quality Management: Empirical, Conceptual, and Practical Issues , 1995 .

[83]  Roger Calantone,et al.  A Contingent View of Quality Management-The Impact of International Competition on Quality , 2000, Decis. Sci..

[84]  Robert J. Vokurka,et al.  The empirical assessment of construct validity , 1998 .

[85]  T. Douglas,et al.  Total Quality Management Implementation and Competitive Advantage: The Role of Structural Control and Exploration , 2001 .

[86]  Roberto Filippini,et al.  TQM impact on quality conformance and customer satisfaction: A causal model , 1998 .

[87]  John H. Grant,et al.  Construct Measurement in Organizational Strategy Research: A Critique and Proposal , 1986 .

[88]  T. Mitchell.  An Evaluation of the Validity of Correlational Research Conducted in Organizations , 1985 .

[89]  R. Narasimhan,et al.  Effect of supply chain integration on the relationship between diversification and performance: evidence from Japanese and Korean firms , 2002 .

[90]  H. Marsh,et al.  Application of confirmatory factor analysis to the study of self-concept: First- and higher order factor models and their invariance across groups. , 1985 .

[91]  J Benson,et al.  Second-Order Confirmatory Factor Analysis of the Reactions to Tests Scale with Cross-Validation. , 1992, Multivariate behavioral research.

[92]  Kenneth A. Bollen,et al.  Structural Equations with Latent Variables , 1989 .

[93]  G. Easton,et al.  The Effects of Total Quality Management on Corporate Performance: An Empirical Investigation , 1998 .

[94]  Charles R. Matthews,et al.  Linking the supply chain to TQM , 2008 .

[95]  Robert E. Spekman,et al.  Just-In-Time Exchange Relationships in Industrial Markets , 1988 .

[96]  Gregory G. Dess,et al.  Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit , 1984 .

[97]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[98]  I. Sila,et al.  Critical linkages among TQM factors and business results , 2005 .

[99]  C. Judd,et al.  Statistical difficulties of detecting interactions and moderator effects. , 1993, Psychological bulletin.

[100]  Daniel E. Vetter,et al.  Replication in strategic management: scientific testing for validity, generalizability, and usefulness , 1998 .

[101]  Leyland F. Pitt,et al.  Potential Research Space in MIS: A Framework for Envisioning and Evaluating Research Replication, Extension, and Generation , 2002, Inf. Syst. Res..

[102]  Ismail Sila,et al.  Quality in supply chains: an empirical analysis , 2006 .

[103]  J. Hair.  Multivariate data analysis , 1972 .

[104]  M. Terziovski,et al.  The relationship between total quality management practices and operational performance , 1999 .

[105]  R. Handfield,et al.  Supplier integration into new product development: coordinating product, process and supply chain design , 2005 .

[106]  S. Ahire,et al.  The role of top management commitment in quality management: an empirical analysis of the auto parts industry , 1998 .

[107]  C. Voss,et al.  The impact of supply chain relationship quality on quality performance , 2005 .

[108]  Charles R. O'Neal,et al.  Buyer-seller relationships in just-in-time purchasing environments , 1994 .

[109]  A. Toni.  Buyer-supplier operational practices, sourcing policies and plant performances: Results of an empirical research , 1999 .

[110]  S. Vickery,et al.  The effects of an integrative supply chain strategy on customer service and financial performance: an analysis of direct versus indirect relationships , 2003 .

[111]  D N Jackson,et al.  The Structure Validity of The Index of Organizational Reactions. , 1988, Multivariate behavioral research.

[112]  Sanjay L. Ahire,et al.  Development and Validation of TQM Implementation Constructs , 1996 .

[113]  Barbara W. Keats.  The Vertical Construct Validity of Business Economic Performance Measures , 1988 .

[114]  R. D. Buzzell,et al.  Product Quality, Cost Position and Business Performance: A Test of Some Key Hypotheses , 1983 .

[115]  J. Jaccard,et al.  LISREL Approaches to Interaction Effects in Multiple Regression , 1998 .

[116]  Bhanu S. Ragu-Nathan,et al.  Development and validation of a measurement instrument for studying supply chain management practices , 2005 .

[117]  Anand Nair,et al.  Meta-analysis of the relationship between quality management practices and firm performance -- Implications for quality management theory development , 2006 .

[118]  Susan Albers Mohrman,et al.  Total quality management: practice and outcomes in the largest US firms , 1995 .

[119]  Xenophon Koufteros,et al.  Internal and External Integration for Product Development: The Contingency Effects of Uncertainty, Equivocality, and Platform Strategy , 2005, Decis. Sci..

[120]  G. Huber,et al.  Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy , 1985 .

[121]  G. Hult,et al.  Organizational learning capacity and internal customer orientation within strategic sourcing units , 2001 .

[122]  R. Handfield,et al.  A Model of Supplier Integration into New Product Development , 2003 .