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Empirical study on effect of quality management on competitive performance in manufacturing companies: International perspective

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  1. Abstract
  2. Introduction
  3. Literature review
  4. Research framework
  5. Data collection
    1. Characteristic of survey's respondents
    2. Measure analysis (pooled sample 5 countries)
  6. Measurement analysis
    1. Reliability
    2. Validity
  7. Effect of quality management practices on competitive performance
    1. Manufacturing cost as independent variable
    2. Quality as independent variable
    3. Delivery as independent variable
    4. Flexibility as independent variable
  8. Discussion
  9. Limitation and future research
  10. Conclusion
  11. References

This paper presents results of an empirical analysis on quality management and its impact on competitive performance. These results have been derived from the third round survey conducted during 2003 and 2004 under the framework of High Performance Manufacturing Project. After presenting a simple analytical framework, the authors establish three hypotheses to be tested; 1) there is no difference in quality management practices across the countries, 2) quality management has significant impact on competitive performance, and 3) there is no difference in the impact of quality management practices on competitive performance across the countries. Then, we suggest eight measurement scales characterizing quality management practices in high performance manufacturing companies, and results of measurement testing show that all of the scales are reliable and valid for one hundred and sixty-three manufacturing companies in five countries: Japan, US, German, Italia, and Korea. Using these scales, we empirically examine similarities and differences in quality management and its relationship with other competitive performance to evaluate the role of quality management. Analysis of variance (ANOVA) and regression analysis were conducted to test hypothesizes.

[...] Effect of Quality Management Practices on Competitive Performance The relationship between the quality management practices and quality performance indexes was tested by stepwise regression. Independent variables are eight quality management practices and dependent variables are four competitive performance indexes Manufacturing cost as independent variable Firstly, the authors examine relationship between quality practices and quality performance with the whole sample data from fiver countries. Regression results shown in Table 6 reveal that Process Control (PCTL) and Small Group Problem Solving (SGPS) were found as primary determinant for improving manufacturing cost. [...]

[...] This paper presents results of an empirical study on effect of quality management practices upon competitive performance in manufacturing companies. The main objective of this study is to identify the similarity and difference of quality management practices and their impact on different aspect of competitive performance. The objective is accomplished by surveying a sample of one hundred and sixty-three manufacturing companies in five countries to examine the nature of their quality management practices and competitive performance. The paper is organized as follows. [...]

[...] The measurement scales of quality management practices are constructed by four to eight question items evaluated on a seven-point Likert scale (1=Strongly disagree, 4=Neither agree nor disagree, 7=Strongly agree). Individual question items are shown in the appendix. Competitive performance was evaluated by quality manager. He or she subjectively judged the competitive position of his/her plant on seven-point Likert scale Significantly worse, Worse, A little worse, About the same, A little better, Better, Significantly better). Table Characteristic of survey's respondents Industry US Japan Electrical & Electronic Machinery Automobile Total Plant characteristics Average Market Share Average Sale Number of employee* * Including both salary personnel employee and hourly personnel Data from 19 plants only Germany Italia Korea 4965** Total Table Measure Analysis (pooled sample 5 countries) Eigen Alpha Customer Involvement (CIVM) Task Training for Employee (TTEM) Small Group Problem Solving (SGPS) Cleanliness and Organization (CO3S) Feedback (FDBK) Process Control (PCTL) Supplier Quality Involvement (SQIV) Top management leadership for quality (TMLQ) value Percentage of variance TTEM SGPS CO3S FDBK PCTL SQIV TMLQ Correlation is significant at the 0.01 level (2-tailed), * Correlation is significant at the 0.05 level (2-tailed) Measurement Analysis 5.1 Reliability Reliability is an estimate of measurement consistency. [...]

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