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The impacts of quality management practices on business performance An empirical investigation from China

The impacts of quality management practices on business performance An empirical investigation... Purpose – This paper seeks to examine the way quality management practices (QMPs) impact quality outcome, R&D process, and business performance, using investigation data from Chinese firms. The possible moderating effects of industrial types and competition on the above influencing relationships were investigated as well. Design/methodology/approach – A two‐round questionnaire survey was conducted to 196 manufacturing and service firms in West China, and hypotheses were verified using a structural equation model with LISREL software. Findings – The results suggest that quality management practices do not have a positive impact on firms' business performance directly, but have an indirect impact on business performance mediated by quality performance and R&D performance. Furthermore, the authors find that industrial type can moderate the relationships between quality management practices and business performance, while competition does not. Originality/value – The findings make a significant contribution to understanding how QMPs impact firms' performance. In addition, the authors' research provides empirical evidence for the fact that QMPs' contribution to firms' financial and marketing performance is greater in service firms, which partly reflects the actual situation in China and other similar developing countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Quality & Reliability Management Emerald Publishing

The impacts of quality management practices on business performance An empirical investigation from China

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0265-671X
DOI
10.1108/02656710810898621
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper seeks to examine the way quality management practices (QMPs) impact quality outcome, R&D process, and business performance, using investigation data from Chinese firms. The possible moderating effects of industrial types and competition on the above influencing relationships were investigated as well. Design/methodology/approach – A two‐round questionnaire survey was conducted to 196 manufacturing and service firms in West China, and hypotheses were verified using a structural equation model with LISREL software. Findings – The results suggest that quality management practices do not have a positive impact on firms' business performance directly, but have an indirect impact on business performance mediated by quality performance and R&D performance. Furthermore, the authors find that industrial type can moderate the relationships between quality management practices and business performance, while competition does not. Originality/value – The findings make a significant contribution to understanding how QMPs impact firms' performance. In addition, the authors' research provides empirical evidence for the fact that QMPs' contribution to firms' financial and marketing performance is greater in service firms, which partly reflects the actual situation in China and other similar developing countries.

Journal

International Journal of Quality & Reliability ManagementEmerald Publishing

Published: Sep 5, 2008

Keywords: Quality management; Business performance; Research and development; China

References