An empirical analysis of the competitive dimensions of quality performance in the automotive supply industry

This paper examines the competitive dimensions of quality for first tier suppliers in the automotive industry. A theoretically relevant set of quality variables is identified from the literature. The results of a factor analysis show that quality is a two dimensional construct in the automotive supply industry. The core dimensions of quality are: product quality, which is primarily focused on design superiority and performance of the physical product; and service quality, which comprises both pre‐ and post‐sale service. The study reveals that both product quality and service quality are related to overall firm performance, regardless of whether asset based, investment based, or market based measures are used.