Supply chain management, supply performance and total quality management : An organizational characteristic analysis

Purpose – This study aims to assess the level of supply chain management practices (SCMP), total quality management practices (TQMP) and firm's supply performance (FSP) in the automotive industry in Thailand and investigate the differences across organizational characteristics on SCMP, TQMP and FSP. Design/methodology/approach – Based on an extensive literature review, the measurement instruments for SCMP, TQMP and FSP were developed and validated by experts, pilot test and various statistical techniques. Descriptive statistics were employed to examine the existences of SCMP, TQMP and FSP in the sample companies. MANOVA was applied to test the differences across company ownership, company size, tier in the supply chain and ISO/TS 16949 on SCMP, TQMP and FSP. Findings – The author found that the measurements of SCMP, TQMP and FSP are reliable and valid. The automotive companies in Thailand apply TQMP much more extensively than SCMP. Their SCMP still emphasize efficient flows of information and materials at operational level to minimize transaction cost. Overall, Japanese companies, large companies, first-tier suppliers and the companies with ISO/TS 16949 have more intensively applied SCMP and TQMP and achieved a higher level of FSP. Research limitations/implications – The distribution of paper-based questionnaires was a convenience sample. Although data from a sample of 211 companies were collected, only 19 percent of them provided more than one response. Future research should apply different random sampling methods and investigate the reasons for and ways to improve the low multiple-response rate. Practical implications – The findings are beneficial to the managers who want to improve SCMP, TQMP and FSP through organization management. Originality/value – This study is one of the first to assess the existence of SCMP and FSP and to study the differences across organizational characteristics on SCMP and FSP in the automotive industry in developing countries. The existence and differences across organizational characteristics on TQMP were also confirmed.