Title: Impact of manufacturing systems on quality management practices, competitive advantages, and operational performance

Authors: DonHee Lee; Byeonghwa Park

Addresses: Department of Business Administration, Keimyung University, 1095 Dalgubeoldaero, Dalseo-Gu, Daegu, 704-701, Korea ' Department of Business Statistics, Hannam University, 70 Hannam-ro, Daedeok-Gu, Daejeon, 306-791, Korea

Abstract: The purpose of this study is to empirically test the effects of manufacturing systems on quality management practices, competitive priorities, and operational performance by using data from the Global Manufacturing Research Group (GMRG) 4.0 (2007-2009) survey. The proposed research model was tested using structural equation modelling for hypotheses based on the data collected from 443 multinational firms from 13 countries. The results indicate that quality management practices and competitive priorities can improve operational performance. In addition, manufacturing systems and quality management practices are found to be critical in maintaining competitive advantages. The results suggest that firms can achieve flexibility by analysing their organisational structure and competitive capabilities in the global market. This study provides useful information for various strategies to have competitive priorities as a source of competitive advantage.

Keywords: manufacturing systems; quality management; competitive advantage; operational performance; Global Manufacturing Research Group; GMRG; structural equation modelling; SEM; multinationals; multinational corporations; MNCs.

DOI: 10.1504/IJPQM.2016.079778

International Journal of Productivity and Quality Management, 2016 Vol.19 No.3, pp.301 - 318

Received: 06 Dec 2014
Accepted: 01 Mar 2015
Published online: 14 Oct 2016 *

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