How Supply Quality Management Improves an Organization's Quality Performance: A Study of Chinese Manufacturing Firms

Because of unfavourable economic conditions, organizations worldwide have to constantly reconstruct their business strategies in order to survive. Recent studies have stressed the importance of supply quality management (SQM) for the general competitiveness of manufacturers. However, very little empirical research has been carried out that specifically examines how SQM practices lead to improvements in quality across an organization. To scrutinise the impact of SQM practices, a survey was conducted of 138 leading manufacturing companies in the Pearl River Delta (PRD), a manufacturing hub in southern China dubbed 'the factory floor of the world'. By using path analytic techniques, a model was constructed to portray the relationships among SQM practices and organizational quality performance. This model could act as a tool of reference for companies seeking to improve their SQM systems, and help them in their efforts to raise quality across the company. This paper demonstrates that quality-conscious management practices speed up the implementation of SQM practices. This paper finally reveals the influential effect of SQM practices on both supply quality and organizational quality performance.