Enhancing the firm's performance through quality and supply base management: An empirical study

Abstract

Over the past ten years, both total quality management and supply base management have become significant strategic tools for firms that are striving to achieve competitive success. This study examines firms' operational quality approaches, supplier evaluation practices, and supply base management activities, and relates these strategic initiatives to firm performance. Hypotheses were tested through the use of bivariate correlation, factor analysis and multiple regression analysis of survey data from a cross-industry sample of quality directors and vice presidents in US firms. While many strategic quality approaches and supply base management tools are positively correlated with firm performance, our results show that quality management and supply base management techniques and tools must be implemented conjointly to achieve superior financial and business performance. The implication is that managers must seek to integrate the activities of quality assurance with those of purchasing and materials management.