The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers

Abstract

As an important dimension of firm performance, innovation performance has not been stressed adequately in the supply chain quality management (SCQM) literature. Furthermore, research on SCQM capabilities, a critical driver for SCQM, has been rather limited. To fill these research gaps, this paper investigates how SCQM capabilities and SCQM practices can impact a firm's innovation and operational performance and how they interact with each other. A conceptual framework is first proposed to describe their relationships, which are then analyzed using a structural equation model. To test this model, data are collected through surveying manufacturing enterprises in China. Our major empirical findings include the followings. First, SCQM practices have a direct positive effect on SCQM capacities and indirect positive effect on innovation performance. Hence, SCQM practices can improve innovation performance indirectly through SCQM capacities as a mediator. Second, SCQM capacities can significantly affect both operational performance and innovation performance. However, SCQM practices have no direct effect on operational performance. Third, innovation performance has a direct positive effect on operational performance. Overall, our findings reveal that building SCQM capabilities is an effective way to achieve high-level SCQM.