TAILIEUCHUNG - Relationship between quality management practices and competitive performance: Japanese quality award perspective

This paper presents the results of an empirical study on the relationship between quality management practices and competitive performance based on our framework to analyze the evaluation criteria for the Japanese Quality Award (JQA). | 1 The Journal Operations Management and Strateg\'. Vol. 2. No. I. pp. 16-'7. 201 i RELATIONSHIP BETWEEN QUALITY MANAGEMENT PRACTICES AND COMPETITIVE PERFORMANCE: JAPANESE QUALITY AWARD PERSPECTIVE Phan Chi Anh University ofiEconomics and Business - Vietnam National University, Hanoi Yokohama National University Yoshiki Matsui Yokohama National University ABSTRACT This paper presents the results of an empirical study on the relationship between quality management practices and competitive performance based on our framework to analyze the evaluation criteria for the Japanese Quality Award (JQA). Path analysis technique is applied to test the proposed framework using data gathered from 163 manufacturing plants, and the result indicates that the data fit well with the JQA model. Multiple regression analysis is used to determine the path coefficient, which is decomposed into direct and indirect effects. Competitive performance is significantly explained by process management. In addition, top management leadership, information analysis, customer relationship, and workforce management are found to indirectly relate with competitive performance. Our findings suggest that JQA model should be adopted as a framework for the self-innovation in business organizations to gain the competitive advantages. Keywords: Quality Management, Japan Quality Award, Empirical Study INTRODUCTION In an era of globalization, quality management is regarded as a key factor in gaining competitive advantage. From a perspective of competitive strategy, quality is often seen as a source of differentiation. The interrelationship among quality management practices and their effect on competitive performance has been investigated in many empirical studies such as Flynn et al. (1995), Anderson et al. (1995), Forza and Flippini (1998), Choi and Eboch (1998), Dow et af. (1999), Kaynak (2003), and Yeung et al. (2005). These have produced mixed' results, probably because of utilization of .

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