The Relationship between Infrastructure Practices with Quality Performance in Manufacturing Industry in Malaysia

Abstract

Purpose – The purpose of this paper is to explore the relationship between quality management (QM) and performance, specifically how the infrastructure and core QM practices affect quality and business performance, in Indian manufacturing organizations. Design/methodology/approach – In this study, the empirical data were drawn from 262 manufacturing organizations in Malaysia. The research model was tested using the structural equation modeling technique. Findings – The findings of the empirical study revealed that infrastructure QM practices have a positive effect on core QM practices and indirectly on quality performance, whereas, core QM practices have a positive effect on quality performance. Also, quality performance has a positive effect on business performance. Research limitations/implications – This study considered QM from two dimensions (infrastructure and core quality practices), the study further contributes to the understanding of the different roles played by diverse QM dimensions in determining business performance in terms of increased return on investment, shareholder and stakeholder value. Practical implications – The study showed that infrastructure quality practices support the application of core quality practices. Therefore, managers must develop and maintain their organization’s quality system and sufficient resources need to be allocated to both types of practices in order to achieve the superior business performance. Originality/value – This study considers both total quality management and Six Sigma practices for defining a new set of infrastructure and core QM practices in Indian manufacturing organizations.