Impact of supply chain quality management practices on operational performance: empirical evidence from manufacturing companies in Vietnam

Abstract

PurposeThis study aims to investigate the effect of supply chain quality management on operational performance in Vietnamese manufacturing companies.Design/methodology/approachQuestionnaire survey is conducted to collect data from Vietnamese manufacturing companies in the electronic/electric industry. Collected data were analyzed by using correlation analysis and hierarchical regression analysis.FindingsThis study points out the current situation of implementing supply chain quality management practices in Vietnamese manufacturing companies which are more focused on internal quality management practices than upstream and downstream quality management practices. Correlation and regression analyses that demonstrate the significant linkage between supply chain quality management practices and operational performance are confirmed in this study. Upstream and downstream quality management are found to be the significant predictor for high performance on quality, cost and delivery.Research limitations/implicationsThis study has some limitations that can be addressed in future studies. The first limitation is the relatively small sample size due to lack of time and resources. These constraint can be overcome in future works by collecting more data in diverse countries and industries to re-examine the framework. Furthermore, larger sample will allow researchers to apply other statistical methods such as path analysis and structural equation modelling, which would provide interesting results. Another limitation is that the collected data in this paper mainly rely on perceptions of the respondents, which may cause individual bias in analysis. To reduce this type of bias, both subjective and objective measurement of scales, especially performance measures, can be used in future studies.Practical implicationsThis study provides empirical evidences that practitioners can use to improve a specific type of performance, especially in the context of emerging economies. In a turbulent and unpredictable business environment, it is emphasized that quality management should be extended at supply chain level to utilize the capabilities of external partners. In Vietnamese manufacturing firms, implementation of such practices as information technology links, information sharing, supplier involvement and customer involvement would lead to high level of operational performance.Originality/valueSupply chain management and quality management are two fields of study that have gained much attention of researchers. However, the concept of supply chain quality management as well as its impact on business performance have not been fully studied, especially in context of a developing country. Through extensive literature review, this study proposes and tests an analytical framework that characterizes supply chain quality management into three elements: internal quality management, upstream quality management and downstream quality management. Subsequently, their impact on quality, cost and delivery are analyzed to provide better understanding of supply chain quality management in Vietnamese context.