The effect of integration practices of total quality management and supply chain management on operational performance: The roles of technological capabilities and lean manufacturing practices
Abstract
The main objectives of this study are to examine the integration of total quality management and supply chain management practices as a new approach, and to examine the mediating role of lean manufacturing practices and the moderating role of technological capabilities in the effects of leadership and strategic planning (LSP), employees involvement and commitment (EIC), information technology system (ITS), supplier relationship (SR), continues improvement and innovation (CII), customer focus (CF) as a viable practices after integration on operational performance (OP) of manufacturing
industries in Jordan (JMIs). Data were collected from the JMIs that listed in Amman stock
exchange which practicing total quality management, supply chain management systems
and lean manufacturing practices using a cross-sectional study design. This study chose 55
firms randomly, and questionnaires were distributed and collected through the personallyadministered
method. Partial Least Squares Structural Equation Modelling (PLS-SEM) was
used to test the study hypotheses. This study finds that LSP, EIC, SR, CII, ITS and CF are
important integration practices of total quality management and supply chain management
for the OP of JMIs. The findings reveal that lean manufacturing practices of JMIs depends
on the degree of LSP, EIC, ITS, SR, and CF of the firm. It is expected CII would improve a
firm‘s practicability to lean manufacturing, but the finding of this study does not support
this expectation CII negatively influences OP. Interestingly, the results further show that
with better lean manufacturing practices, LSP, EIC, ITS, SR, CII and CF influence OP.
Furthermore, technological capabilities does not have a significant moderating influence on
the paths between LSP and OP, EIC and OP, ITS and OP, SR and OP, CII and OP and CF
and OP. The results of this study provide important insights to policy-makers and
researchers to further understand the effect of the integration of total quality management
and supply chain management practices on operational performance. JMIs should
emphasize on LSP, EIC, SR, CII, ITS and CF; however, it is important to note that overconcentration
on CII may result in lower practicability of lean manufacturing. Policymakers
should encourage JMIs to improve their quality and supply chain systems which
may improve their product and service quality with lower cost. Lastly, limitations of the
current study and avenues for future research are discussed.
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