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

Listed author(s):
  • Han, Jiqin
  • Omta, S.W.F. (Onno)
  • Trienekens, Jacques H.
Registered author(s):

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

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

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    Handle: RePEc:ags:ifaamr:8183
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    1. 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.
    2. 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.
    3. JS Armstrong & Terry Overton, 2005. "Estimating Nonresponse Bias in Mail Surveys," General Economics and Teaching 0502044, EconWPA.
    4. 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.
    5. 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.
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