A causal structure between total quality management, organisational culture, knowledge management, supplier integration and supply chain performance - an FMCG case study

Abstract

Supply chains face many challenges in competitive fast-moving consumer goods market such as integration and collaboration among their partners especially suppliers. The proposed conceptual casual model emphasizes customer-supplier interfaces as a key characteristic of applying total quality management practices and its impact on supply chain performance. The structural equation modelling and partial least squares non-parametric method are applied through the use of empirical data collected from studied companies. The results show that total quality management practices has the most effect on supplier integration and supply chain performance respectively. The other highest effects include organisational culture on supply chain performance, total quality management on knowledge management, organisational culture on total quality management, knowledge management on supplier integration and supplier integration on supply chain performance. Knowledge management does not have direct impact on supply chain performance. This study provides some managerial suggestions to improve supply chain performance.