Applied product quality knowledge and performance : Moderating effects of uncertainty

This research challenges the idea of an unconditional and positive influence of knowledge on performance without regard to environmental uncertainty. We focus on applied product quality knowledge spanning the supply chain (i.e. supplier, internal, and customer quality sources are considered). A survey of 208 manufacturing firms examined the moderating influence of product churning (uncertainty) and demand unpredictability on the association between applied product quality knowledge and firm performance. We also controlled for firm size and production technology. Firms that can determine a fit between their product quality knowledge application and the types of environmental uncertainty they face will perform better in terms of market and financial performance indicators.