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Write a Journal Article Review of 900-1200 words, not including the title page or reference page. For each Journal Article Review, you must discuss how the theoretical model or treatment described in the article compares to the information discussed in your textbook. No more than 20% of each Journal Article Review may be quotations. You must cite and reference the original article, the course textbook, and one additional scholarly article. Each Journal Article Review assignment must include these sections: Title page Article caption at top of first page of text (current APA style) to identify the article Statement of the author’s purpose (100 words) Background of the issue (175 words) Application of supply chain management theory relevant to article (175 words) Managerial implications of article findings (350 words/2–3 paragraphs) Summary of the article and its context (100 words) References (Current APA style)
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The effect of supply chain quality
management on supply chain
performance: the indirect roles of
supply chain agility and innovation
Ayman Bahjat Abdallah, Nour A. Alfar and Salah Alhyari
Department of Business Management, The University of Jordan, Amman, Jordan
Abstract
Effect of
supply chain
quality
management
785
Received 14 January 2020
Revised 16 July 2020
18 October 2020
5 March 2021
21 March 2021
Accepted 24 March 2021
Purpose – The current study seeks to investigate how supply chain quality management (SCQM) and supply
chain agility (SCA) and innovation (SCI) have an impact on supply chain performance (SCP) and how SCQM
affects SCP through the mediating role of SCA and SCI capabilities.
Design/methodology/approach – In line with the research objective, a quantitative model was applied, and
a multi-item survey questionnaire was developed to collect primary data. A random sample of 284
manufacturing firms belonging to different industries was used. The measurement model was assessed for
validity and reliability, and satisfactory levels of these tests were demonstrated. Research hypotheses were
examined using structural equation modeling (SEM).
Findings – The results of the current study have significant implications in regard to the further improvement
of SCP through SCQM. The study also found that SCQM plays a key role across the entire SC network in
facilitating and developing SCA and SCI capabilities. The remarkable findings of the current study revealed the
indirect effect of SCQM on SCP through SCA and SCI. These results broaden the work of previous studies
which identified the positive effects of SCQM on performance by providing meaningful insights into SCQM’s
role in promoting SCA and SCI capabilities, which, in turn, further improves SCP.
Originality/value – This study addresses a gap in the literature concerning the effect of SCQM on SCP. In
addition, it is the first study, to the best of the researchers’ knowledge, to explore the role of two major SC
capabilities, namely, SCA and SCI on the SCQM–SCP relationship. Moreover, the present study addresses a
questionable issue in the literature regarding practices that conceptualize SCQM. Several studies confuse
SCQM practices with internal quality management (QM) practices. This study defines SCQM as consisting of
collaborative QM practices with external SC members and proposes five related practices for measuring SCQM.
Keywords Supply chain quality management, Supply chain agility, Supply chain innovation,
Supply chain performance, Relational view
Paper type Research paper
1. Introduction
Many challenges confront manufacturers operating in today’s constantly changing
environment. They strive to improve their supply chains (SCs), achieve higher
performance levels, and sustain their competitive positions. Moreover, the competition
among individual companies has shifted to competition among SCs, which has led academics
and practitioners to underline the need for quality implementation throughout the SC
networks (Kaynak and Hartley, 2008; Hong et al., 2020). As such, the re-examination of the
internal quality strategy, taking into account the evolving complexity of the external SC
network, has proved to be central to the competitive position of the organization and to the
achievement of the optimum quality and efficiency of the SC (Vanichchinchai and Igel, 2011).
Quality is therefore now perceived as a shared objective of the distribution chain and as the
responsibility of the multi-echelon SC participants, particularly in a context where value
chains are evidencing a growing trend in servitization, the internet of Things (IoT), and
circular economy models (Soares et al., 2017). This focus on the interface between quality and
SC has been referred to in the current literature as “supply chain quality management”
(SCQM) (Kuei et al., 2008; Quang et al., 2016).
International Journal of Physical
Distribution & Logistics
Management
Vol. 51 No. 7, 2021
pp. 785-812
© Emerald Publishing Limited
0960-0035
DOI 10.1108/IJPDLM-01-2020-0011
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Existing studies have focused on examining the effect of SCQM on specific performance
measures, including quality performance, operational performance and financial
performance (e.g., Kaynak and Hartley, 2008; Song et al., 2017; Soares et al., 2017; Hong
et al., 2019; Phan et al., 2019). However, there is an apparent gap in the literature concerning
the expected role of SCQM in enhancing supply chain performance (SCP). In addition, most
existing literature has paid attention mainly to the investigation of the direct effect of SCQM
on performance (e.g., Zeng et al., 2013; Truong et al., 2017; Soares et al., 2017; Phan et al., 2019;
Huo et al., 2019). Nevertheless, these studies and others have pointed to the limited role of
direct effects to fully explain the SCQM–performance relationship and have called for further
research to investigate the indirect effects of SCQM on performance (Zeng et al., 2013; Quang
et al., 2016; Hong et al., 2018, 2019; Huo et al., 2019; Yu et al., 2019).
In this vein, the perception of world-class companies in terms of SCQM has shown that
SCQM cannot be successfully implemented without the effective acquisition of new SC
capabilities and resources (Kuei et al., 2008). SC capabilities are seen as significant outcomes
of implementing SCQM that lead to enhanced performance (Hong et al., 2019; Yu et al., 2019).
Nevertheless, examining the indirect effects of SCQM on performance through SC capabilities
is an under-investigated area in the literature (Hong et al., 2019). In the current dynamic and
uncertain business environment, two major SC capabilities are regarded as key drivers for
improving and sustaining SCP, namely, supply chain agility (SCA) and supply chain
innovation (SCI) (Kim and Chai, 2017; Dubey et al., 2018; Kwak et al., 2018; Ayoub and
Abdallah, 2019; Chen, 2019). Both SCA and SCI are expected to enable manufacturing
companies to respond to unpredictable situations, deal with unforeseen challenges and
further improve SCP (Ayoub and Abdallah, 2019; Chen, 2019). However, the extant literature
lacks empirical evidence concerning the effects of SCQM on SCA and SCI. Furthermore, to the
best of our knowledge, the mediating effects of SCA and SCI on the SCQM–SCP relationship
have not been examined previously. To this end, this study examined SCQM by investigating
the role of SCQM in SCP and also explored the role of SCA and SCI capabilities in the
relationship between these two factors. The following research questions are therefore raised:
RQ1. What effect does SCQM have on SCP?
RQ2. How does SCQM affect SCP through the mediating role of SCA and SCI
capabilities?
To address the research questions mentioned above, we utilized the relational view (RV) to
determine the impact of different mechanisms of relational rent on measures of SCQM. These
relational mechanisms are dyadic in nature and extend beyond the scope of the firm, existing
in supply chains (SCs). The current study conceptualizes SCQM in terms of collaborative
practices with external SC partners. Further, it examines the direct effects of SCQM on SCP,
SCA and SCI. Additionally, the effects of SCA and SCI on SCP are investigated, and the
indirect effects of SCQM on SCP through SCA and SCI are explored. The data used to meet
this study’s objectives were gathered from 284 manufacturing companies in Jordan.
2. Literature review and hypotheses development
2.1 Relational view
The theoretical basis of the current study is drawn from the relational view (RV) perspective
(Dyer and Singh, 1998). The RV is regarded as an important expansion of the resource-based
view (RBV) theory of a firm (Gligor and Holcomb, 2012). The RBV emphasizes internal
resources and capabilities that are rare, valuable, non-substitutable and difficult to imitate to
acquire sustainable performance and gain an advantage over competitors (Barney, 1991).
Unlike the RBV theory, the RV perspective emphasizes external resources and argues that
inter-firm routines and resources, rather than within-firm resources, are expected to generate
competitive advantages and contribute to superior performance and survival of businesses
(Dyer and Singh, 1998).
Based on an RV perspective, firms that have close relationships and cooperate closely with
other members of the SC can achieve sustainable performance through four potential sources
of relational rent and competitive advantage: “(1) relation-specific assets, (2) knowledgesharing routines, (3) complementary resources/capabilities, and (4) effective governance”
(Dyer and Singh, 1998, p. 660). Relational rent relates to supernormal gain jointly created in a
mutual relationship that neither firm can produce in isolation from the other. Such gains can
only be generated by the mutual, idiosyncratic efforts of the specific partners in an alliance
(Dyer and Singh, 1998). The RV is extremely pertinent to SCs, where relationships among SC
partners create value (Clemons et al., 2020). Thus, this study is based on relational
mechanisms between interfirm resources and routines because of their role in improving SCP.
In this vein, recent studies of SCQM have shifted their focus towards inter-organizational
SC and the relationships among its constituent elements (Clemons et al., 2020). Kaynak and
Hartley (2008) point out that the RV sheds light on how SCQM integrates focal entities with
their suppliers, customers, and other members of SC networks. Consequently, SCQM can
generate invaluable external routines, resources and capabilities that will improve SCP
beyond what cohorts can achieve separately. In addition, cooperation among SC members
can enhance the ability of a company and its SC to respond to dynamic, turbulent customer
needs in a flexible and timely manner (Gligor and Holcomb, 2012). Through the lens of the RV
perspective, we also propose that SCQM enhances the agility and innovation of a SC and,
therefore, significantly improves SCP. Appendix explains how value creation and
performance improvement extend from within firms to relationships among them as a
result of SCQM implementation based on an RV.
2.2 Supply chain quality management (SCQM)
The concept of SCQM emerged almost two decades ago to combine the benefits of SCM and
QM (Phan et al., 2019). While SCM focuses on the integration and cooperation of upstream and
downstream SC members to reduce cost and achieve high efficiency, the main focus of QM is
internal, as it aims to improve quality and increase customer satisfaction (Flynn et al., 2010;
Huo et al., 2019). As such, SCQM is seen as a wide-ranging approach to achieving quality
integration with suppliers and customers to enhance SCP and maximize the value provided to
customers (Foster, 2008).
Kuei et al. (2008) described SCQM as an outgrowth of SCM, which is designed to make it
possible for a company to have a competitive SC by applying QM practices. Also, Robinson
and Malhotra (2005) described SCQM as the formal coordination and integration of business
processes that include all SC partner organizations for the measurement, analysis, and
continuous improvement of products, services and processes in order to deliver value and
satisfaction to intermediate and end customers in the marketplace. Therefore, quality
collaboration, coordination and integration among all SC members represent the essence of
SCQM (Huo et al., 2019).
2.2.1 SCQM practices. SCQM practices refer to the activities performed by companies to
achieve their SCQM goals (Quang et al., 2016). However, there is an apparent disagreement
among researchers regarding practices that constitute SCQM (Soares et al., 2017). For
instance, Kaynak and Hartley (2008) defined SCQM practices through the concepts of
management leadership, training, employee relations, quality data and reporting, customer
focus, supplier quality management (SQM), product/service design and process management.
Soares et al. (2017) used the practices of SC integration, customer focus, supplier focus and
quality leadership. Hong et al. (2018) conceptualized SCQM through teamwork, staff
autonomy, process control, internal quality training, internal product/service design, supplier
cooperation, customer cooperation, SC quality training and SC product/service design. Other
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researchers categorized SCQM into internal QM practices and external (upstream and
downstream) QM practices (e.g., Flynn and Flynn, 2005; Zeng et al., 2013; Truong et al., 2017;
Song et al., 2017; Huo et al., 2019; Phan et al., 2019).
Simultaneously, other researchers have pointed out that several authors tend to confuse
SCQM practices with internal QM practices (Kuei et al., 2001; Azar et al., 2010; Hong et al.,
2018). In order to resolve this contradiction in the literature, we propose three key areas of
focus that can be used to identify SCQM practices. First, we define SCQM with a focus on SC,
external rather than internal QM perspective. According to Ross (1998), SCQM represents the
final stage of a traditional QM program. Moreover, the internal implementation of QM within
each firm across the SC is thought of as a prerequisite to SCQM (Robinson and Malhotra,
2005; Kaynak and Hartley, 2008; Huo et al., 2019). In other words, organizations cannot extend
their QM efforts to their SC members unless they have completely and successfully
implemented an internal QM program. Therefore, the current study defines SCQM as a
multidimensional concept consisting of practices that have an SC focus rather than an
internal focus.
Second, we assume that when identifying the SCQM variables, upstream and downstream
members should be considered. This is consistent with Flynn and Flynn (2005), who
suggested that the two main aspects of the SC, upstream and downstream, should be
considered in order to identify factors that impact SCQM.
Third, given that SCQM is anchored in an RV perspective, which explain how value
creation and performance improvement extend from within firms to relationships among
them as a result of SCQM implementation. Thus, the RV should be the foundation of SCQM.
The RV mechanisms should be recognized as sources of value in buyer–supplier
relationships; these mechanisms – include collaborative knowledge-sharing routine, dyadbased investments, development of complementary resources/capabilities and effective
governance – can create shared benefits for the entire SC network. Moreover, SCQM practices
should be dyadic in nature and should be implemented within SCs (Clemons et al., 2020).
Some researchers as referred above have operationalized SCQM using practices such as
management leadership, training, employee relations, quality data and reporting, and
process management (e.g., Lin et al., 2005; Kaynak and Hartley, 2008; Hong et al., 2018).
However, these practices fail to address the three key focus areas of SCQM described above,
since all of these practices primarily represent only one component of the SC, internal
processes. Furthermore, such practices do not align with the definition of SCQM (SCM and
QM practices that focus on the SC rather than on internal processes). These practices also fail
to consider the attribution of RV, which emphasizes the role of externally oriented resources
as sources of value in buyer–supplier relationships. Our study addresses SCM and QM
practices as a unitary SCQM concept covering five unexplored dimensions, namely supplier
quality management (SQM), customer quality involvement (CQI), SC information sharing
(SCIS), SC new product cooperation (SCNPC) and SC continuous improvement (SCCI). These
SCQM practices were selected because they have an SC focus and include all SC members. In
addition, they summarize and encompass the external SCQM practices mentioned in the
literature. They also uphold SC components in terms of upstream and downstream, and they
allow firms to benefit from relational rents co-generated only in exchange relationships.
Table 1 provides definitions and descriptions of the selected SCQM practices.
More importantly, in many of the previous studies, there have been several approaches to
measuring SCQM including multidimensional, unidimensional and hierarchical SCQM
models. In this essence, numerous researchers such as Zhang et al. (2018), Hong et al. (2019),
Sidhu et al. (2019), and Hussain et al. (2019) adhere to the view that SCQM should be
conceptualized and operationalized as a high-order construct. A study by Hong et al. (2019)
reported that SCQM would have a higher explanatory capacity when the construct is
conceived as a higher order. Additionally, this type of conceptualization is not uncommon for
Practice
Definition and description
Supplier quality management
(SQM)
SQM can be seen as an aggregation of strategic practices that extend
across inter-organizational boundaries to meet the needs of current and
new customers (Soares et al., 2017). A manufacturer can incorporate the
capabilities of its suppliers into its manufacturing operations in a variety
of areas, including management accountability; supplier selection,
development, and incorporation; and quality control and auditing
CQI refers to the extent to which the manufacturer shares information
about quality and synchronizes the QM process with the customer (Yu
and Huo, 2018). This practice relies heavily on strong relationships with
customers, which enable manufacturers to obtain timely feedback on
product quality so they can improve QM processes and meet customer
quality standards. The customer, as a key actor in the SC network, should
have reciprocal, friendly relationships with other SC actors. This
supports understanding between customers and manufacturers and
encourages the resolution of QM disputes through consensual
communication and cooperation, leading to unity and collaboration
regarding quality standards and other objectives (Zhao et al., 2011)
Information generated at each stage of the SC should be captured, used,
and assessed so that necessary, economically relevant information is
available to decision-makers in an appropriate format within a
reasonable timeframe (Kim and Chai, 2017; Suifan et al., 2020). This
practice reflects the willingness of SC participants to exchange important
technical, financial, functional, and strategic information
SCNPC refers to the extent to which SC participants recognize the new
product development process and understand the importance of
effectively coordinating the flow of new products to facilitate sourcing,
production, distribution, and other sales-related services that impact a
product’s commercialization (Hilletofth and Eriksson, 2011)
SCCI refers to the continuous implementation of improvement initiatives
that increase success and mitigate failure across the SC by increasing
innovation and learning and thus improving overall SC performance
(Abdallah and Matsui, 2009; Bortolotti et al., 2015). When SCCI is
implemented, the SC functions as a tool for gathering knowledge and
strengthening inter-organizational innovation
Customer quality involvement
(CQI)
Supply chain information sharing
(SCIS)
Supply chain new product
cooperation (SCNPC)
Supply chain continuous
improvement (SCCI)
the assessment of related multidimensional concepts in the SC domain. Following this stream
of research, the current study conceptualized SCQM as a high-order construct consisting of
five distinct, but related first-order constructs. The rationale for this conceptualization is that
a high-order construct considerably simplifies the findings, especially if the complex effects
are examined including mediation and moderation analysis (Zhang et al., 2018; Hong et al.,
2019; Hussain et al., 2019; Sidhu et al., 2019).
2.3 Supply chain performance (SCP)
The literature has provided supporting evidence of a positive relationship between SCQM
and product quality, customer service (Kannan and Tan 2007), and organizational
performance (Sidhu et al., 2019). However, to the best of our knowledge, no empirical
evidence on the impact of SCQM on SCP has been provided. SCP is a firm’s ability to satisfy
customer demands rapidly, on time, and at a reduced cost. Various measures have been
conceptualized and utilized in the literature to measure SCP. These include quality
improvement, cost reduction, delivery punctuality, reduction in lead times, process
improvement, flexibility, customer responsiveness and time-to-market (Panayides and
Effect of
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Table 1.
SCQM practices
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Venus Lun, 2009; Seo et al., 2014; Sundram et al., 2016; Al-Shboul, 2017; Katiyar et al., 2018;
Mani et al., 2018). In line with previous studies, the current study measures SCP using the
indicators of cost, quality, delivery, flexibility, lead time, responsiveness, and time-to-market.
2.4 Supply chain agility (SCA)
SCA is defined as an SC’s ability to respond to changes in turbulent markets by adjusting its
operations and tactics to take advantage of opportunities and avoid or mitigate threats (Van
Hoek et al., 2001; Lin et al., 2006; Li et al., 2008; Dubey et al., 2018). In addition, Eckstein et al.
(2015) defined SCA as a company’s ability to adjust and realign its operations along the whole
SC to increase flexibility and responsiveness to dynamic customer requirements. Therefore,
SCA requires internal capabilities and the effective integration of suppliers and customers to
adapt quickly to turbulence in the market (Tse et al., 2016). In particular, SCA enables
manufacturing companies to adjust their prices, specifications, quantity levels, quality
requirements and delivery times (Lin et al., 2006; Li et al., 2008; Ayoub and Abdallah, 2019).
2.5 Supply chain innovation (SCI)
SCI refers to “a complex process which deals with uncertainty in the environment, so as to
provide solutions for customer needs and find new ways to better organizational processes
using new technologies” (Lee et al., 2011, p. 1194). SCI has also been defined as “a change
(incremental or radical) within the supply chain (SC) network, SC technology, or SC processes
(or combination of those) that can take place in a company function, within a company, in an
industry or in a SC in order to enhance new value creation for the stakeholder” (Arlbjorn et al.,
2011, p. 8). Therefore, SCI implies the exchange of skills, expertise, and resources among key
SC members since a firm might not possess all the resources and capabilities needed for
innovation processes (Iddris, 2016). Consequently, trust, information-sharing and learning
are essential factors for enabling fruitful SCI (Ojha et al., 2016).
2.6 Hypotheses development and conceptual framework
In line with the relational approach, the present study views SCQM as antecedent of two SC
capabilities, namely SCA and SCI. The development of effective SC capabilities and resources
across key SC boundaries is a necessary requirement to become innovative, sensitive, and
responsive to a dynamic marketplace. In particular, the study focuses on five SCQM
practices: SQM, CQI, SCIS, SCNPC and SCCI. The five practices are based on an RV that
reinforces the value of resources developed through interfirm relationships. Considering this
from the RV perspective, we propose that SCQM practices enhance the agility and innovation
capabilities of an SC and, therefore, considerably further improve SCP. The model of the
present study is illustrated in Figure 1. The study framework illustrates the structural path
model that represents the links among the research constructs. The model shows how SCQM
dimensions work as lower-order constructs to shape a higher-order construct. In essence, the
application of the reflective-formative approach was used to form SCQM, SCA, and SCI as
latent variables. At the same time, the construct of SCP was measured by a reflective
approach. Accordingly, on the basis of the literature review and the research model referred
to above, seven hypotheses throughout H1 to H7 were proposed. Hypotheses have been
formulated to support the association of the constructs as outlined in the following
subheadings.
2.6.1 SCQM and SC performance. SCQM that encompasses long-term supplier
relationships is remarkably critical for SCP, impacting aspects such as cost, quality,
delivery, flexibility, lead time, responsiveness and time to market. Collaboration and
integration among SC entities improves when firms invest in long-term relationships with
Effect of
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quality
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H6+
SCQM practices
Supplier quality
management
Supply chain
agility
H2+
H4+
791
Customer quality
involvement
Supply chain
performance
H1+
SC information
sharing
SC new product
cooperation
H3+
H5+
Supply chain
innovation
SC continuous
improvement
Direct effect
Indirect effect
H7+
members of their SC and combine complementary resources or capabilities, which drive a
range of quality-related practices. Such an integral environment establishes a foundation for
increased information sharing, which then supports inventory management and punctual
delivery. Therefore, different SCQM practices are likely to boost SCP through five distinct
mechanisms. First, SQM enhances the quality of materials received, reduces defect rates and
waste, lowers costs, boosts flexibility and responsiveness, and increases the punctuality of
delivery (Lin et al., 2013; Quang et al., 2016; Zhang et al., 2017). This is the case because many
SCP measures are related to quality. Specifically, timely, reliable delivery is key to service
quality. Costs are directly reduced as defect rates and manufacturing and distribution waste
decrease. Furthermore, flexibility and responsiveness are increased by streamlined
operations and reduced interruptions. Second, CQI enhances a firm’s responsiveness,
enabling organizations to better understand and meet their customers’ needs, which then
provides a competitive advantage (Soares et al., 2017). Customer involvement in product/
service quality development and information exchange between customers and suppliers
should properly synchronize externally focused QM process and increase commitment
through specific investments in the customer interface, including transport and logistics and
order and delivery information systems. Investments in improving these systems can
promote and sustain the key attributes of SCP, as well as increasing the perceived value of the
product. Third, SCIS increases the level of information sharing across the SC. Information
sharing can be encouraged by relational governance mechanisms and incentive systems. The
former includes trust and contractual governance via formal controls (e.g., contractual
obligations to exchange information). The latter, meanwhile, involves the interdependence of
SC participants and market volatility. According to this approach, SCIS among SC members
enables firms to operate in dynamic environments, properly allocate resources and capacities,
reduce stock levels, make timely schedules, and provide punctual delivery, thus positively
influencing SCP (Kembro and Selviaridis, 2015). Fourth, SCCI involves systematic efforts to
find and implement new processes, as well as continuous improvement of processes.
Implementing SCCI across the SC reduces waste and costs, enhances quality, improves
processes and increases responsiveness to customers (Qrunfleh and Tarafdar, 2013). Lastly,
Figure 1.
Research model
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by involving suppliers and customers in new product development (NPD) projects, firms
obtain external resources and knowledge, which enhance the quality of value provided,
reduce cost, accelerate time-to-market and boost SCP (Kaynak and Hartley, 2008; Lau, 2011).
On the basis of the above discussion, the following hypothesis is proposed:
H1. SCQM has a direct positive effect on SCP.
792
2.6.2 SCQM and SC agility capability. SCQM helps firms respond to changes in the market in a
speedy and flexible manner. Closer involvement of customers and suppliers means a firm can
quickly recognize changes in customer demand and quickly work with suppliers to respond,
and this process is supported by information sharing in the SC, collaboration in NPD, and
continuous improvement activities across the SC. SQM is a key practice of SCQM that enables
firms to work with reliable suppliers who collaborate and deliver high-quality products in a
timely manner. Therefore, SQM and cross-organizational communication with key suppliers
on quality issues, NPD, and possible improvements create a shared understanding and
enhance responsiveness, flexibility, and agility capability across the SC (Zhang et al., 2017).
The early involvement of suppliers in NPD and design changes provides firms with suppliers’
suggestions and applicable solutions regarding components that can be implemented to
better meet customers’ changing needs (Kaynak and Hartley, 2008). CQI promotes strong
interactions with customers and enables the rapid exchange of information about current and
future customer requirements. This allows manufacturers to obtain timely feedback on
product quality, customer preferences and early detect possible changes in customer needs.
As a result, manufacturers will become more proactive and rapidly respond to changing
customer requirements. SCIS connects various members of the SC to each other, facilitates
intra- and inter-organizational communication, and enables firms to transmit accurate
information at appropriate times, minimize SC lead times, and facilitate quick responses to
uncertain customer demand. SCNPC is particularly relevant to effectively coordinating the
flow of new products in order to facilitate increases in sourcing, production, distribution and
other sales-related services. Thus, this approach keeps firms close to the customer and
responsive to customer needs. SCCI can enhance coordination between entities within the
same network, thereby removing the overlap that occurs when firms act separately. This may
be particularly significant when agility is needed, which involves a sequence of primary
activities that are essential to meet customer needs and expectations. As such, the following
hypothesis is proposed:
H2. SCQM has a positive effect on SCA capability.
2.6.3 SCQM and SC innovation capability. Implementing SCQM practices entails making
fundamental changes, leads to the discovery of new skills, and provides opportunities to
learn new ways to accomplish tasks (Ronnback and Eriksson, 2012). Having close
relationships with external SC members allows firms to detect and exploit opportunities
quickly and effectively while fulfilling their customers’ needs better than their competitors
(Hong et al., 2019). More specifically, an RV approach combines resources and capabilities to
develop new applications and solutions from existing knowledge. This calls for the
exchange of skills, expertise and resources among key SC members, since a single firm
might not possess all the resources and capabilities needed for innovation. Practices such as
SQM and CQI support the exchange of quality data with suppliers and customers through
investments in advanced technology, thereby enabling fruitful SCI. SCIS, which entails
systematic information sharing with suppliers and customers, also helps firms to create
knowledge about current and future requirements of customers and reduces the risk related
to the introduction of innovative procedures and processes, thus enabling companies to
foresee successful and proper innovations across the SC (Ayoub and Abdallah, 2019).
Moreover, involving suppliers and customers in NPD enriches the scope of innovation and
helps firms identify opportunities for innovation, reduce innovation costs, and enhance joint
problem-solving (Feng and Wang, 2013). Continuous improvement efforts across an SC,
accompanied with effective IS, promote creative thinking among SC members, encourage
suggestions for innovative ideas, and support open communication, all of which are
expected to enhance SCI (Zeng et al., 2015). Accordingly, the following hypothesis is
proposed:
H3. SCQM has a positive effect on SCI capability.
2.6.4 SC agility and SC performance. There is an agreement among researchers that agility
enhances the responsiveness of an SC and improves its ability to rapidly respond to customer
requirements and changing demands (e.g. Qrunfleh and Tarafdar, 2013; Abdallah and
Nabass, 2018). SCA increases an SC’s ability to effectively and efficiently handle market
uncertainties. An agile SC has advanced flexibility regarding product variety, or
