Quality management practices and their relationship to buyer’s supplier ratings: a study in the Korean automotive industry

This research explores if quality management practices are different among suppliers whose performance is rated high, medium, or low by a common buying company and identifies which specific practices contribute to the differences. The entire population of first-tier suppliers to a Korean auto assembler was surveyed to measure use of quality management practices. Useable returns were received from 25% of the suppliers surveyed. To measure conformance quality and overall rating, suppliers were categorized into high, medium, and low performing groups based on the buying company’s data. Multivariate analysis of variance was done using general linear model (GLM-MANOVA) to explore differences in the high-, medium-, and low-performing supplier groups based on their use of quality management practices. No statistically significant differences were found when suppliers were categorized based on conformance quality. However, when categorized based on overall rating, the highest rated suppliers were found to emphasize process management and employee satisfaction to a greater degree than the lowest rated suppliers.     

Strategic supply management,quality initiatives,and organizational performance

Researchers in supply chain management have found over the past two decades that supply management should be not merely a purchasing function but a strategic tool for supply chain integration. Supply management, the cornerstone of the integration of industrial supply chains, has evolved as a key research area. Based on quantitative and qualitative investigations of 225 electronics manufacturing firms, we examine the organizational impacts of strategic supply management (SSM) and the contexts of company size, process type, ISO 9000 certification, and quality management (QM) implementation that facilitate such an endeavor. We reveal that SSM is essentially a quality management initiative that requires bilateral efforts for continuous improvement and thus is not associated with the basic requirements of ISO 9000. We find that SSM improves on-time shipments, reduces operational costs, and leads to customer satisfaction and improved business performance. Developed based on contemporary premises in supply chain and QM, this research refines our understanding of the relationships among quality initiatives, SSM, and organizational performance.     

Impact of relational norms, supplier development and trust on supplier performance

Supplier relationship management and supplier development initiatives assume a fundamental role in enterprise supply chain management. An important aspect of effective supplier relationship management is the role of trust. This paper seeks to understand whether supplier relationship management or supplier development initiative should be emphasized as a firm strives to achieve superior supplier performance. The analysis and discussion draws upon sourcing strategy literature and is based on empirical survey-data of mid to upper level managers with responsibility for supply management initiatives in their respective organizations in Denmark and in the USA. It examines the interrelationships among “relational norms”, “trust”, “supplier development initiatives” and ensuing “supplier performance”. The data analysis shows that firms must emphasize relation and trust building activities before investing in supplier development initiative. Supplier perception audits must be routinely performed to gauge the level of trust and strength of relational norms.     

Relationships between implementation of TQM, JIT, and TPM and manufacturing performance

Research on Total Quality Management (TQM), Just-in-Time (JIT) and Total Productive Maintenance (TPM) generally investigates the implementation and impact of these manufacturing programs in isolation. However, many researchers believe and argue conceptually the value of understanding the joint implementation and effect of manufacturing programs. This study investigates the practices of the three programs simultaneously. We find that there is evidence supporting the compatibility of the practices in these programs and that manufacturing performance is associated with the level of implementation of both socially- and technically-oriented practices of the three programs.     

External communication behaviour of purchasers—effects on supplier management performance

This article presents findings of a research effort that focuses on the relationships among the external communication behaviour of purchasers, individual and contextual factors and the performance in supplier management. Communication quantity, openness and friendliness were identified as dimensions of individual communication behaviour. Information and relationship quality were used as the two dimensions of communication quality. The results, based on structural equation analysis, provide support for the positive influence of individual communication behaviour on communication quality and supplier management performance. Results suggest that relationship quality appears to be of great significance in the model. Oral communication capability and purchasers’ attitudes towards individual communication with suppliers also play important roles in explaining external communication behaviour of purchasers.     

ISO 9000 practices and financial performance: A technology coherence perspective

Attention to processes has increased, as thousands of organizations have adopted process-focused programs such as TQM and ISO 9000. Proponents of such programs stress the promise of improved efficiency and profitability. But research has not consistently borne out these prospects. Moreover, the expectation of universal benefits is not consistent with research highlighting the important role of firm-specific capabilities in sustaining competitive advantage. In this paper, we use longitudinal panel data on ISO 9000 practices for firms in the auto supplier industry to study two new issues related to the adoption of process management practices. First, we find that, as the majority of firms within an industry adopt ISO 9000, late adopters no longer gain financial benefits from these practices. Second, we explore how firms’ technological coherence moderates the performance advantages of ISO 9000 practices. We find that firms that have a very narrow or very broad technological focus have fewer opportunities for complementary interactions that arise from process management practices and thus benefit less than those with limited breadth in technologically related activities.     

Service Guarantee Strength: The key to service quality

While most authors describe a service guarantee as a “zero-one variable” indicating the presence or absence of an explicit written service guarantee, this paper develops a construct called “Service Guarantee Strength” (SGS) that is a continuous variable. This construct measures the degree to which a firm sets clear service quality standards for itself on dimensions that customers care about, and has an formal policy for quickly giving meaningful compensation to customers when these standards are not met.The paper builds upon established micro-level behavioral theory to develop the “Service Guarantee Strength Framework”. This framework posits that high Service Guarantee Strength leads to improved service quality, customer satisfaction, and loyalty through three intervening variables—marketing communications impact, employee motivation and vision, and learning through service failure.An empirical investigation was conducted to test the SGS Framework using both employee and customer data from three pairs of firms, with each pair in a different industry. None of these firms had an explicit service guarantee. Unlike many behavioral research studies, this study measured both employee and customer perceptual data and compared the two. The research finds that Service Guarantee Strength is positively related to customer perceptions of service quality, customer satisfaction, and loyalty.     

A contingency-configurational view of purchasing operations: The mediating role between supplier relationship and firm performance

The literature has considered purchasing and supply management activities from a strategic perspective, but the tactical role of purchasing operations has yet to be explored. Purchasing operations represent the internal modus operandi for transactions with suppliers, comprising three main activities – purchasing transactions, purchasing document management, and purchasing assessment – and supportive activities like purchasing knowledge management. Following the contingency theory, we hypothesize that these internal activities mediate between external supplier relationship management and firm performance (financial, customer and delivery performance). Complementarily, we adopt the configurational theory to hypothesize that this link between external and internal activities can be combined to increase firm performance. To test this contingency-configurational view of purchasing operations, we conducted a quantitative survey with 234 companies. The regression results of the contingency analysis show that purchasing operations activities have a full mediation role in most relationships between supplier relationship management and firm performance, while knowledge management positively moderates the association between purchasing assessment and customer performance. Moreover, the cluster analysis for the configurational analysis shows that supplier relationship management and purchasing operations follow maturity levels of joint implementation of internal and external activities. Our findings shed light on the purchasing operations by defining the activities representing this concept and showing their role in supply management. We also contribute to practice by proposing an integrative system that helps managers organize the firm's purchasing and supply management activities.     

Project management infrastructure: The key to operational performance improvement

Process improvement programs such as Six Sigma, Lean, and Lean Sigma are very important and deserve serious academic research attention. However, definition problems make it difficult to study any specific type of process improvement program. Therefore, this study defines two organizational level program management factors, Strategic Project Selection (SPS) and Project Management Infrastructure (PMI), that are independent of any specific process improvement program. Drawing upon current literature, this study develops and tests theoretical models that relate SPS and PMI to operational performance improvement and to each other. Using empirical data collected from 53 supplier plants of one large high-tech firm, this study finds that at the plant level, SPS mediates the relationship between PMI and operational performance improvement. This insight contributes to both theory development and practice, suggesting that a viable strategy for a process improvement program’s success is to focus on PMI in order to enhance SPS and ultimately improve performance. Not to be reproduced or quoted without written permission from the authors.     

A meta-analysis model of manufacturing capabilities

Recent research in operations strategy has focused on showing the extent to which manufacturing's competence in developing and executing one or more competitive capabilities affects the organization's overall business performance. Several of those efforts have produced models, such as the ‘sand cone’, that suggest an ideal sequence in which manufacturing capabilities should be developed. However, efforts to empirically validate such sequential models, except for one recent study, have been inconclusive. This paper takes a different approach to examining the relationships among competitive capabilities. The existing cross-sectional studies of manufacturing capabilities are integrated to synthesize a proposed model of: (1) the relationships among manufacturing capabilities, and (2) the relationships between those capabilities and business performance. The proposed model is synthesized using data from previous studies, other models and theoretical arguments. Meta-analysis is used to identify aspects of the model that appear better supported by empirical research and those that require further study. The implications of this proposed model with regard to research, practice and future research in operations strategy are discussed.     

An empirical investigation of scheduling performance criteria

Planning and scheduling significantly influence organizational performance, but literature that pays attention to how organizations could or should organize and assess their planning processes is limited. We extend planning and scheduling theory with a categorization of scheduling performance criteria, based on a three-stage survey research design. Particularly, the results show that, next to schedule quality, the planning process factors timeliness, flexibility, communication, and negotiation are important performance criteria, and especially so in organizations that are faced with high levels of uncertainty. The results suggest that organizational and behavioral aspects of planning and scheduling cannot be mitigated with advanced models and software that solely focus on good schedules. Rather, high quality schedules and high quality scheduling processes need to be facilitated simultaneously to attain high planning and scheduling performance.     

Strategic operations management decisions and professional performance in U.S. HMOs

Professional service organizations are becoming an increasingly important segment of the service sector in the U.S. but little attention has been paid to the management of these organizations, particularly in relation to technical performance. This paper reports the findings of a survey of managers of Health Maintenance Organizations (HMOs) which related operations management decisions about organization, workforce management, quality management and planning and control, to clinical process and outcome performance.This research demonstrates that managerial decisions do affect clinical performance in HMOs. These findings have implications for both researchers and practitioners. For researchers, the study provides a framework for future research on the important link between management decisions and technical performance in professional service organizations. For practitioners, this study suggests that technical performance will be enhanced when professional work is appropriately managed.     

What are affecting earnings quality： A summarization

Researches on factors that affecting earnings quality are significant for regulators＇ decisions and the improving of earnings quality. After reviewing the research findings on what are affecting earnings qualities from the following 6 fields： accounting standards, firm characteristics, board and auditing committees＇ characteristics, managerial characteristics, auditing firm characteristics and other factors, the author conclude the current findings and foresee the future research focus on earnings quality.     

The impact of purchasing strategy-structure (mis)fit on purchasing cost and innovation performance

The organizational design literature strongly supports the notion of “structure follows strategy”, and suggests that a misfit between the two has a negative effect on performance. Building on this line of argument, we examine to what extent the (mis)fit between purchasing strategy and purchasing structure impacts purchasing performance. We focus on cost and innovation purchase category strategies, and examine how the deviation from an ideal purchasing structure defined along three dimensions (centralization, formalization, and cross-functionality) impacts purchasing performance. Analysing data collected from 469 firms in ten countries, we demonstrate that a strategy-structure misfit negatively impacts purchasing performance in both cost and innovation strategies. We also find that purchasing proficiency is a mediator in this relationship between misfit and performance. Our findings aid managerial decision making by empirically validating the necessity of having the right purchasing structure for successfully executing different purchasing strategies.     

How to achieve cost savings and strategic performance in purchasing simultaneously: A knowledge-based view

The competitive advantage purchasing provides has been debated for decades. For a novel perspective we derive a theoretical framework grounded in the knowledge-based view in order to examine how purchasing knowledge and purchasing integration impact cost and strategic performance. The derived hypotheses are tested based on extensive secondary data from a large European multinational utility company. The 179 studied ‘purchasing-internal client relationships’ contain real contracted savings data and internal client ratings of purchasing knowledge, purchasing integration and strategic purchasing performance. We show that purchasing knowledge is a major antecedent for both savings and strategic purchasing performance. This effect is further amplified by purchasing integration. With this study, we extend the understanding of the purchasing knowledge–performance link. We conclude that purchasing knowledge becomes particularly valuable when combined with other functions' processes through purchasing integration. This causal chain is also supported through general knowledge-based view theory. Moreover, we provide numerical evidence of the value of knowledge creation and integration processes to purchasing professionals in our managerial implications based on results obtained from actual purchasing savings data.     

A contingent view of e-collaboration and performance in manufacturing

Manufacturers are increasingly utilizing Internet-based tools to more readily conduct collaborative activities with key business customers. While the emerging conventional wisdom suggests that the greater the extent to which manufacturers engage in Internet-enabled commerce with downstream business customers the better the performance, we espouse an alternative view. Consistent with the relational view of competitive advantage and contingency theory, we develop a model and a series of hypotheses that specify how various product and market characteristics may influence the nature of the expected positive relationship between e-collaboration and performance.To test the model, we collected data from 50 manufacturers using a Web-based survey. Our partial least squares (PLS) analysis results do indeed support the notion that e-collaboration is related to better operational and business performance. However, we go on to show that the strength of the relationship between e-collaboration and operational performance diminishes as the level of environmental munificence increases. Notably, we found no such moderating effect with respect to the level of product complexity or market variability. Our findings contribute to the operations strategy literature on supply chain relationships in the e-business arena and offer managers a framework for understanding the conditions under which investments in e-collaboration may be more appropriate and therefore more beneficial.     

Demand chain management in manufacturing and services: web-based integration, drivers and performance

This paper investigated the relationship between Internet-enabled supply chain integration strategies and performance in manufacturing and services. It summarizes the literature on demand and supply integration and describes four web-based strategies. A stratified random sample was collected from UK manufacturers and services, and there was strong evidence that demand chain management (DCM) led to the highest performance in manufacturing, but few signs of DCM in services. Manufacturers and services relying on only web-based demand or supply integration outperformed their low integration counterparts, but lagged DCM in manufacturing. The study also investigated DCM adoption drivers and found that rational efficiency and bandwagon effects drove change. The findings have some important implications for theory as well as for manufacturing and service companies interested in improving their performance.     

Developing cost management in customer–supplier relationships: three case studies

This study describes cost management development projects in three customer–supplier relationships and analyzes these projects from the perspective of relationships. Differences in suppliers’ objectives, actions taken, and results gained in the projects were found in the explorative study, although the customer's objective was the same in all cases. The use of cost information depended on the balance of power between firms, on the trust between personnel, and on the volume of the firms’ mutual business.