The Relationship Between Quality Management Practices And Operational Performance

With the continuous development of quality management theory and practice, the relationship between quality management and business operations performance draws more researchers’attention. Many scholars explore the relationship between them from the overall or the specific quality practices, but they have not yet obtained a unified conclusion until today. In recent years, many studies began to explore their relationship under different contexts in order to modify and consummate quality management theory from the adaption. As a big manufacturing country, the development of quality management in China is still in its infancy, so it is supportive to explore the relationship between quality management and operations performance for the development of quality theory and practice.In view of this, this paper explored empirically the relationship between quality incentives, quality management practice and operational performance under the background of Chinese manufacturing enterprises. In research methods, this paper first analyzed the concepts and measurement dimensions of quality practice, quality incentives and operational performance, then studied their constructs and internal mechanism on the basis of extensive literature review. Second, this paper proposed the research model and and lists a series of hypotheses. Third, the article explored the impact of quality incentives on the relationship between quality practice and operational performance using multiple regression analysis, and the data from139manufacturing enterprises in China. Finally, the proposed hypothesis was tested, and we find the following conclusions:Firstly, quality practices have a significant positive effect on operational performance. Based on the classification of quality practices from Flynn et al (1995) and Zu (2009), we find that core QM practices and infrastructure QM practices all can directly affect the operational performance.Secondly, quality incentives can affect the relationship between core quality management practices and operational performance. If we Increase efforts to quality incentives, the relationship between core quality management practices and operational performance will be enhanced. As far as the applications of quality tools and technologies, our manufacturing enterprises are relatively weak, so it can motivate our employees to participate in a variety of trainings about quality methods and techniques regularly by strengthening quality incentives, then all these can improve business operational performance eventually.Lastly, we find that ISO Quality Certification System has not positively effect on quality management practices and performance in Chinese manufacturing enterprises. Because of Chinese special cultural characteristics, many people deal with works or other things based on "feeling" but not rules and systems, it will hamper the operation of ISO Certification System. Therefore, it is imperative to strengthen the system construction in China.This paper defined the scope of quality incentive which include reward and responsibility for quality within the company, quality award models etc., and explored the impact of quality incentives on the relationship between quality management practices and operational performance, and deepened people’s understanding of quality management practices, and provided guidance and of effectively implementing quality management for Chinese manufacturing enterprises.