Quality Dimensions, Capabilities and Business Strategy: An Empirical Study in High-tech Industry
Resource
Total Quality Management & Business Excellence 14 (4): 407-421
Journal
Total Quality Management & Business Excellence
Pages
407-421
Date Issued
2003
Date
2003
Author(s)
Chang, Shih-Chia
Lin, Neng-Pai
Yang, Chen-Lung
Sheu, Chwen
Abstract
Excellence in quality helps firms gain customer loyalty and achieve competitive edge. Previous studies have suggested the need to develop quality capabilities to improve business performance. However, quality is multi-dimensional, and the development of each dimension requires different sets of resources. It is important for a firm to develop quality capabilities with a focus on a particular set of quality dimensions to support its strategic needs. This study hypothesizes that the relative contribution of the different quality dimensions to business performance is contingent on a given business strategy. We have identified the theoretical relationship between quality capabilities (expressed as a set of dimensions) and business strategy. Using the data collected from 113 high-tech manufacturing firms in Taiwan, we have analyzed and prescribed the matching of seven quality dimensions with three business strategies. Statistical results indicate that the business performance of quality management is strategy dependent. The congruencies between business strategy, quality dimensions and capabilities are important to a firm's performance in new product introduction, net profit and sales.
SDGs
Type
journal article
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