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The Joint Impact of Supply Chain Integration and Quality Management on the Performance of Pork Processing Firms in China

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  • Han, Jiqin
  • Omta, S.W.F. (Onno)
  • Trienekens, Jacques H.
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    Abstract

    It is widely acknowledged that competition is no longer between individual firms, but between supply chains. A number of studies have indicated that supply chain integration and quality management have become essential to obtain competitive advantage. The present study tests the relationships among supply chain integration, quality management practices and firm performance in 229 Chinese pork slaughterhouses and processors using structural equation modeling. The most important results are that quality management is positively linked with firm performance. As managers put it "Quality is the life of the enterprise". Pork processing managers that wish to improve their performance are therefore advised to invest in quality management. Equally interesting is the indirect link of supply chain integration through quality management with firm performance. To improve quality of their products and reduce uncertainty in hog supply chains, companies are advised to develop more integrated relationships with their suppliers. However, in contrast to earlier studies, the direct link of supply chain integration and firm performance was not significant. This result may indicate that the Chinese pork processing industry is still in an early stage of SC integration.

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    Bibliographic Info

    Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

    Volume (Year): 10 (2007)
    Issue (Month): 02 ()
    Pages:

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    Handle: RePEc:ags:ifaamr:8183

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    Keywords: Supply chain management; quality management practices; pork supply chains; firm performance; China; Agribusiness; Livestock Production/Industries;

    References

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    1. James C. Anderson, 1987. "An Approach for Confirmatory Measurement and Structural Equation Modeling of Organizational Properties," Management Science, INFORMS, vol. 33(4), pages 525-541, April.
    2. JS Armstrong & Terry Overton, 2005. "Estimating Nonresponse Bias in Mail Surveys," General Economics and Teaching 0502044, EconWPA.
    3. Lu, Chin-Shan & Lai, Kee-hung & Cheng, T.C.E., 2007. "Application of structural equation modeling to evaluate the intention of shippers to use Internet services in liner shipping," European Journal of Operational Research, Elsevier, vol. 180(2), pages 845-867, July.
    4. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    5. Kevin B. Hendricks & Vinod R. Singhal, 1997. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards," Management Science, INFORMS, vol. 43(9), pages 1258-1274, September.
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    Cited by:
    1. Calum G. Turvey & Rong Kong, 2009. "Business and financial risks of small farm households in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(2), pages 155-172, May.
    2. Han, Jiqin & Trienekens, Jacques H. & (Onno) Omta, S.W.F., 2011. "Relationship and quality management in the Chinese pork supply chain," International Journal of Production Economics, Elsevier, vol. 134(2), pages 312-321, December.
    3. Zhang, Xiaoyong & Hu, Dinghuan, 2009. "Contracts, trust and market environment in farmer-buyer relationships," 2009 Conference, August 16-22, 2009, Beijing, China 49925, International Association of Agricultural Economists.
    4. Xiaoyong Zhang & Lusine H. Aramyan, 2009. "A conceptual framework for supply chain governance: An application to agri-food chains in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(2), pages 136-154, May.

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