Supply chain quality risk management: an empirical study of its dimensions and impact on firm performance

Tse, Ying Kei (2012) Supply chain quality risk management: an empirical study of its dimensions and impact on firm performance. PhD thesis, University of Nottingham.

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The goal of this dissertation is to understand what supply chain quality risk management (SCQRM) is and how SCQRM can help firms improve product quality and firm performance. This dissertation attempts to reveal and understand the SCQRM practices in order to provide new insights in dealing with supply chain quality risk. Thus, this dissertation aims to address three research questions: RQI) What should SCQRM entail in order to reduce the risk to the quality of products being handled along the supply chain? RQ2) What would a valid measurement scale of SCQRM entail? RQ3) What is the impact of SCQRM on product quality and firm's performance?

In this research, a comprehensive SCQRM framework is proposed. SCQRM is conceptualised as a multidimensional, second-order construct that is represented by a system of four interrelated and complementary dimensions: risk shifting, risk sharing, risk avoidance, and risk remedy. These four SCQRM dimensions are subsequently examined in the conceptual model in relation to performance, and three key approaches are adopted: (a) statistical analysis to validate the measurement instrument of SCQRM; (b) measurement model analysis technique to investigate multi-dimensionality of SCQRM; (c) structural model building technique to examine the relationships between SCQRM dimensions and performance. In such, quantitative analysis techniques, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM), are adopted to analyse survey data from 289 companies.

Three contributions to knowledge are made in advancing the literature of SCQRM. Firstly, this study reports a 7-stage procedure for developing a reliable and valid measure of SCQRM. Secondly, the measure of SCQRM is found to be a multidimensional construct consisting of four unique dimensions. Thirdly, this study examines the significant positive effect of the complementarity system of SCQRM on product quality and on firm performances. Moreover, the findings imply that a successful SCQRM results from building a complementarity power in risk management resources and routines. The multiple manifestations of the four SCQRM dimensions are all driven by a cohesive, yet unobserved synergy, which also forms one of the competences of the firm. Moreover, the managerial implication suggests that complementary benefits arise from the adoption of a more holistic approach to the management of supply chain quality risk at the firm-level.

Item Type: Thesis (University of Nottingham only) (PhD)
Supervisors: Tan, K.H.
Ramanathan, R.
Keywords: Business logistics, management, risk management, quality of products
Subjects: H Social sciences > HD Industries. Land use. Labor
Faculties/Schools: UK Campuses > Faculty of Social Sciences, Law and Education > Nottingham University Business School
Item ID: 13741
Depositing User: EP, Services
Date Deposited: 06 Nov 2013 09:48
Last Modified: 26 Oct 2016 13:15

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