Impact of Supplier Management Strategies on the Organizational Performance of ISO 9001 Certified Organizations
Abstract
Purpose: The purpose of this article is to discuss the impact of Supplier orientation and the resulting Supply Chain Management (SCM) approach, on the organizational performance of ISO 9001 Quality Management Systems certified organizations. Methodology/Approach: Following a literature review, a full structural conceptual model was proposed. An online survey was administered to managers of Portuguese organizations with certified ISO 9001 Quality Management Systems. Descriptive Statistics and Structural Model Equations were used to validate the proposed conceptual model. Findings: There are positive relationships between Organization Strategy and Supplier Orientation, between Supplier Orientation and Stakeholders Satisfaction, and between Stakeholders Satisfaction and Organizational Performance Orientation, supporting ISO 9001:2015. These findings provide insights that supplier orientation, mediated by stakeholder satisfaction, is an essential tool for organizational competitive sustainable advantage. Research Limitation/implication: The analysis was based on managers of ISO 9001 certified organizations perceptions, so additional studies with actual data and longitudinal studies should be useful for further validation. Originality/Value of paper: The importance of the overall organizational ecosystem is highlighted with potential impact on the more than 1 Million ISO 9001 organizations certified worldwide and in their suppliers.
References
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Shin, H., Collier, D. A. and Wilson, D., D., 2000. Supply management orientation and supplier/buyer performance. Journal of Operations Management, 18, pp. 317–333.
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Taguchi, G., 1986. Introduction to Quality Engineering, Asian Productivity Organization.
Tan , K., C., Lyman, S. B. and Wisner, J., D., 2002. Supply chain management: a strategic perspective. International Journal of Operations and Production Management, 22 (6), pp. 614-631.
Tarí, J., J., Molina-Azorín, J., F. and Heras, I., 2012. Benefits of the ISO 9001 and ISO 14001 standards: A literature review. Journal of Industrial Engineering and Management, 5(2)2, pp. 297-322.
Thirumalai, S. and Sinha, K., K., 2005. Customer satisfaction with order fulfillment in retail chains: Implications of product type in electronic B2C transactions. Journal of Operations Management, 23, pp. 291–303.
Yamin S, Gunasekruan A. and Mavondo F., T., 1999. Relationship between generic strategy, competitive advantage and firm performance: an empirical analysis. Technovation, 9 (8), pp.507–18.
Yin, H., and Schmeidler, P., 2009. Why do standardized ISO 14001 environmental management systems lead to heterogeneous environmental outcomes. Business Strategy and the Environment, 18, pp. 469-86.
Barney, J., 2001. Is the Resource-Based “View” a useful perspective for strategic management research? Yes. The Academy of Management Review, 26(1), pp. 41-56.
Berrone, P., Surroca, J. and Tribó, J . A., 2007, Corporate Ethical Identity as a Determinant of Firm Performance: A Test of the Mediating Role of Stakeholder Satisfaction. Journal of Business Ethics, 7, pp. 35-53.
Boiral, O., 2012. ISO 9000 and Organizational Effectiveness: A Systematic Review. Quality Management Journal, 19 (370), pp. 16-37.
Carr, A., S. and Pearson, J., N., 1999. Strategically managed buyer–supplier relationships and performance outcomes. Journal of Operations Management, 17, pp. 497–519.
Chen, C., C. and Yang, C., C., 2002. Cost-effectiveness based performance evaluation for suppliers and operations. Quality Management Journal, 9(4), pp. 59–73.
Chen, I., J., Paulraj, A. and Lado, A., A., 2004. Strategic purchasing, supply management and firm performance. Journal of Operations Management, 22, pp. 505–523.
Chopra, S., Meindl, P., 2007. Supply Chain Management: Strategy, Planning, & Operation (3rd ed), Pearson-Prentice Hall, Upper Saddle River, NJ.
Cronbach, L, J., 1951. Coefficient alpha and the internal structure of tests. Psychometrika;16, pp. 297-334.
Croom, S., Romano, P. and Giannakis, M., 2000. Supply chain management: an analytical framework for critical literature review. European Journal of Purchasing & Supply Management, 6 (1), pp. 67-83.
Crosby, P. B., 1979. Quality is free: the art of making quality certain. New York: McGraw-Hill.
Deming, W. E., 1986. Out of the Crisis. Cambridge, MA: MIT, Centre of Advanced Engineering Study.
Flynn, B., B., Huo, B. and Zhao, X.,2010. The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28, pp. 58-71.
Fonseca, L., 2012. Influence of Sustainability/Social Responsibility of Organizations for their sustainable success, PhD Thesis, ISCTE – Lisbon University Institute.
Fonseca, L., 2015a. From Quality gurus and TQM to ISO 9001:2015: a review of several quality paths. International Journal for Quality Research, 9(1), pp.167–180.
Fonseca, L., 2015b. Relationship between ISO 9001 certification maturity and EFQM Business Excellence Model results. Quality, Innovation and Prosperity, 19 (1), pp. 85-102.
Fonseca, L., Ramos, A., Rosa, A., Braga, A and Sampaio, P., (in press). Stakeholders satisfaction and Sustainable Success. International Journal of Industrial and Systems Engineering.
Freeman, R. E., 1984. Strategic Management: A Stakeholder Approach, Boston, Pitman.
Gilmour, P., 1999. A strategic audit framework to improve supply chain performance. Journal of Business & Industrial Marketing, 14(5/6), pp. 355-363.
Hair, J. F., Black, B., Babin, B., Anderson, R. E. and Tatham, R., L., 2010. Multivariate Data Analysis, Seventh Edition, Prentice Hall, New Jersey.
Heras, I. S, Boiral, O, 2013. Towards a Research Agenda on Management System Standards, International Journal of Management Reviews. 15(1), pp.47–65.
Ishikawa, K., 1986. Guide to Quality Control (2nd edition), Asian Productivity Organization.
ISO, 2014. ISO Survey 2013. [online] Available at: http://www.iso.org [Accessed 2014/10/01].
ISO, 2015. ISO TC/176. [online] Available at: http:// www.iso.org/iso/iso_technical_committee?commid=53882, [Accessed 2015.05.01].
Juran, J. M. (Ed.), 1979. Juran’s Quality Control Handbook (3ª edition). New York: McGraw-Hill.
Karapetrovic, S., 2002. Strategies for integration of management systems and standards. TQM Magazine, 14 (1), pp.61-67.
Kotzab, H. and Otto, A., 2004. General process-oriented management principles to manage supply chains: theoretical identification and discuss. Business Process Management Journal, 10(3), pp. 336-349.
Lee, H.L., 2004. The triple-A supply chain. Harvard Business Review, 82 (10), pp. 102–112.
Levine D., Toffel, M.W., 2010. Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employers and Employees, Harvard Business School.
Li, S., Ragu-Nathan, B., Ragu-Nathan, T., S. and Rao, S., S., 2006. The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34, pp.107–124.
Lin, C., Chow, W., Madu, C. N., Kuei, C.H. and Yu, P. P., 2005. A structural equation model of supply chain quality management and organizational performance. International Journal Production Economics, 96 (3), pp.355-365.
Margolis, J. D, Walsh, J. P., 2003. Misery Loves Companies: Rethinking Social Initiatives by Business. Administrative Science Quarterly, 48 (2), pp. 268-305.
Marôco, J., 2010. Análise de Equações Estruturais – Fundamentos Teóricos, Software e Aplicações, Report Number, Pêro Pinheiro.
Martínez-Costa, M., Martínez-Lorente, A., R. and Choi, T.,Y., 2008. Simultaneous consideration of TQM and ISO 9000 on performance and motivation: an empirical study of Spanish companies. International Journal of Production Economics, 113, pp. 23-39.
McWilliams, A., Siegel, D., 2001. Corporate Social Responsibility: A Theory of the Firm Perspective. The Academy of Management Review, 26 (1), pp.117-127.
Mills, J., Schmitz, J. and Frizelle, G., 2004. A strategic review of supply networks". International Journal of Operations & Production Management, 24 (10), pp. 1012-1036.
Narasimhan, R. and Kim, S. W., 2002. Effect of supply chain integration on the relationship between diversification and performance: evidence from Japanese and Korean firms. Journal of Operations Management, 20, pp. 303–323.
Pestana, M. H.; Gagueiro, J. N., 2003. Análise de Dados para as Ciências Sociais – A Complementaridade do SPSS, 3º Edição - Revista e aumentada, Edições Sílabo, Lisbon.
Porter, M.E., 1980. Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, New York.
Porter, M.E., 1985. Competitive Advantage, The Free Press, New York.
Prajogo, D., Huo, B. and Han, Z., 2012.The effects of different aspects of ISO 9000 implementation on key supply chain management practices and operational performance. Supply Chain Management: An International Journal, 17(3), pp. 306 – 322.
Robinson, J., R. and Malhotra, M., K., 2005. Defining the concept of supply chain quality management and its relevance to academic and industrial practice. International Journal of Production Economics, 96(18), pp. 315-337.
Romano, P., and Vinelli, A., 2000. Quality management in a supply chain perspective: strategic and operative choices in a textile-apparel network. International Journal of Operations and Production Management, 21(4), pp- 446-460.
Shin, H., Collier, D. A. and Wilson, D., D., 2000. Supply management orientation and supplier/buyer performance. Journal of Operations Management, 18, pp. 317–333.
Singh, P., J., Power, D. and Chuong, S., C., 2011. A resource dependence theory perspective of ISO 9000 in managing organizational environment. Journal of Operations Management, 29 (1-2), pp. 49-64.
Taguchi, G., 1986. Introduction to Quality Engineering, Asian Productivity Organization.
Tan , K., C., Lyman, S. B. and Wisner, J., D., 2002. Supply chain management: a strategic perspective. International Journal of Operations and Production Management, 22 (6), pp. 614-631.
Tarí, J., J., Molina-Azorín, J., F. and Heras, I., 2012. Benefits of the ISO 9001 and ISO 14001 standards: A literature review. Journal of Industrial Engineering and Management, 5(2)2, pp. 297-322.
Thirumalai, S. and Sinha, K., K., 2005. Customer satisfaction with order fulfillment in retail chains: Implications of product type in electronic B2C transactions. Journal of Operations Management, 23, pp. 291–303.
Yamin S, Gunasekruan A. and Mavondo F., T., 1999. Relationship between generic strategy, competitive advantage and firm performance: an empirical analysis. Technovation, 9 (8), pp.507–18.
Yin, H., and Schmeidler, P., 2009. Why do standardized ISO 14001 environmental management systems lead to heterogeneous environmental outcomes. Business Strategy and the Environment, 18, pp. 469-86.
Authors
Fonseca, L. M., & Lima, V. M. (2015). Impact of Supplier Management Strategies on the Organizational Performance of ISO 9001 Certified Organizations. Quality Innovation Prosperity, 19(2), 32–54. https://doi.org/10.12776/qip.v19i2.592
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