DSpace at VNU: An extensive structural model of supply chain quality management and firm performance

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International Journal of Quality & Reliability Management

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

Huy Quang Truong Paulo Sampaio Maria Sameiro Ana Cristina Fernandes Binh An Thi Duong Estela Vilhenac

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Huy Quang Truong Paulo Sampaio Maria Sameiro Ana Cristina Fernandes Binh An Thi Duong Estela Vilhenac , (2016),"An extensive structural model of supply chain quality management and firm performance", International Journal of Quality & Reliability Management, Vol 33 Iss 4 pp -

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

Kuei et al (2001) defined SCQM using the three following equations:

On the other hand, for this successful integration, information plays an extremely important

2001), etc Nevertheless, a single performance measure cannot portray diversified dimensions of

Based on an extensive literature review, the most relevant SCQM practices are identified (see

and cooperation among parties in the supply chain are improved (Ellram, 1995) Hence, we

as well as improvements in design, production, delivery, etc., are also suggested Moreover, since

and equipment, because all the activities in a firm always require human interaction (APO, 2000)

tasks easier They quickly get acquainted with their works, promoting low rates of errors, better

return on sales Likewise, a satisfied customer will introduce to other potential customers As a

AHIRE, S L & O’SHAUGHNESSY, K C 1998 The role of top management commitment in quality

FENING, F A., PESAKOVIC, G & AMARIA, P 2008 Relationship between quality management practices

LAKHAL, L., PASIN, F & LIMAM, M 2006 Quality management practices and their impact on

SAMSON, D & TERZIOVSKI, M 1999 The relationship between total quality management practices and

ZEHIR, C & SADIKOGLU, E 2010 The relationship between total quality management (TQM) practices

Figure 3: Structural model

Table 1: Description of SCQM practices

Supplier

management

Supplier assessment

Formal supplier assessment system Clear metric for measuring supplier performance Monitoring closely supplier performance Comparison with other suppliers

(Prajogo et al., 2012)

Supplier quality management

Reliance on a few suppliers Supplier selection based on quality Use of certified suppliers Reliance on supplier process control Communication with suppliers about quality considerations Conformity of required quality attributes by suppliers Clarity of specifications to suppliers Decrease in amount of inspection for incoming quality (Li et al., 2005)

Customer focus

Determination of customers’ needs and wants Understanding of products or services by employees Use of information from customers in designing products and services Commitment to satisfy customers

(Lakhal et al., 2006)

Internal

process

Product/service design

Use of modular design of component parts Use of standard components Simplification of products Review of new product/service design Clarity of product/service specifications (Kannan and Tan, 2005)

Process management

Use of fool-proof for process design Use of statistical techniques Use of automatic processes Auto-control inspection Use of the preventive equipment maintenance Clarity

of work or process instructions Identification of problem's location

(Kaynak, 2003, Saraph et al., 1989, Forker, 1997) Logistics

Selection of facility location Response to anticipated delivery dates Response to desired quantities Modification of order size Response to delivery times for specific customers (Stank et al., 2001)

Human resource management

Employee development objectives based on strategic objectives Effectiveness of employee problem/grievance resolution program Measurement of employee satisfaction Work environment Empowerment Promote of employee motivation Training programs Involvement in determining training needs

(Adam, 1994, Choi and Eboch, 1998, Powell, 1995, Samson and Terziovski, 1999, Park et al., 2001)

Top management support

Offer of innovation and continuous improvement policies Provision of necessary resources for processes Promotion of partners’ involvement in firm’s activities Participation of top management in supply chain quality improvement process Review of supply chain quality issues in top management meetings Perception of importance of supply chain quality improvement Responsibility for firm performance

(Kaynak, 2003, Saraph et al., 1989, Flynn et al., 1995)

Supply chain integration

Development of a long-term relationship Participation in company's activities Participation in activities of trade partners Share of knowledge about core business processes Share of improvement benefits, risks and rewards Joint problem-solving Participation in continuous improvement programs Support for trade partners to improve product quality Common goals Evaluation relationship periodically

(Vanichchinchai and Igel, 2010)

Information

Information Sharing

Share of proprietary information Announcement about issues affecting company's business Share of business knowledge about core business processes Information exchange to establish business planning Announcement about events or changes Face-to- face planning/communication

(Li et al., 2005, Li and Lin, 2006, Li et al., 2006) Information

quality

Exchange of relevant information Exchange of timely information Exchange of accurate information Exchange of complete information Exchange of confidential information (Cao and Zhang, 2011, Li et al., 2005, Li and Lin, 2006)

Information Management

Data collection about trade partners’ activities A common standard for information sharing Evaluation of formal and informal complaints and satisfaction Information sharing among functions Important information transmission to employees Use of information to improve key processes, products and services

(Vanichchinchai and Igel, 2010)

Information technology

Direct computer-to-computer links Inter-organizational coordination based on electronic links Use of information technology-enabled transaction processing Electronic mailing capabilities Use of electronic transfer of purchase orders, invoices, and/or funds Use of advanced information systems to track and/or expedite shipments

(Prajogo et al., 2012)

Table 2: Description of firm performance dimensions Dimensions of firm

Customer satisfaction

Response to customer standards Customer evaluation

to firm performance Continuity to use firm’s product/service Recommendation of firm’s product/service to others

(Bozarth et al., 2009, Taylor and Baker, 1994)

Financial performance

Material acquisition costs Non-quality costs Warehousing costs Manufacturing unit costs Cost of carrying inventory Logistics costs Transportation costs Sales revenue Market share Return on sale (Beamon, 1999)

Operational performance

Delivery of inputs on-time Material inventories Quality inputs Inspection of incoming materials/components/products Set-up time Lead-time Inventory levels Rate of defect products Level of utilization at plant Product/service quality Rate of new product development Flexibility Employee satisfaction and morale Employee’s productivity (Beamon, 1999)