Study the relationship between Supply Chain Quality Management practices and performance in the Iranian Automotive Industry

Abstract

The aim of this study is to examine the relationships between supply chain quality management practices and performance. A conceptual model is developed and tested through path analysis using the cross-section data collected from the automotive industry in Iran. Using a quantitative methodology, 280 of 500 senior and executive managers in the automotive industry in Iran participated and completed the survey. Exploratory factor analysis (EFA) was used for data reduction of the entire sample (to purify the scale) and to ascertain whether the survey questions were loaded on their respective dimensions (this was refined and confirmed later by CFA). Besides that, the structural equation modeling (SEM) was used to examine the research hypotheses and hypothesised model. Leadership, customer focus, education and training, strategic supplier's partnership, information analysis, internal lean practices and teamwork is positively associated with organisational performance. The results of this study provide strong evidence that certain supply chain quality management practices when implemented can directly or indirectly improve innovation and performance.