The mediating impact of innovation of the relationship of supply chain quality management and performance in the Iranian Automotive Industry

Abstract

In today’s global market place, the traditional approaches to supply chain management (SCM) increasingly proved to be ineffective. Though many researches have been focused on supply chain management concept, its link with quality management perspective is often limited, and more focus is needed to evaluate quality management (QM) issues within the supply chain contexts. Consequently, this study incorporates and defines the concept of supply chain quality management (SCQM) and its practices by comprehensively reviewing prior QM and SCM literature in major journals. The main goal of this study is to examine the relationships between SCQM practices, performance and innovation. A conceptual model was developed and tested through path analysis using the cross-sectional data collected from the automotive industry in Iran. Using a quantitative methodology, 280 of 500 senior and executive managers in Iran automotive industry participated in this study. Structural equation modeling (SEM) was employed to examine the research model. Findings revealed that there is a positive effect of the supply chain quality management practices on innovation and organizational performance. In addition, the results also suggest that innovation partially mediates the relationship between supply chain quality management practices and organizational performance. This study makes several theoretical and empirical contributions and provides further insights on SCQM practices. Managerial implications are discussed, as well as several potential recommendations for future studies are identified and a conclusion is drawn. The outcomes of this research would enable managers to assess the strengths and weaknesses of their organizations and thus, develop appropriate strategies to improve their organizational performance.