Supplier quality management and performance: the effect of supply chain oriented culture

Drawing from contingency theory, we investigate the impact of Supplier Quality Management (SQM) activities on internal quality performance and examine the role of Supply Chain Oriented (SCO) culture in the relationship between SQM and internal quality performance. A survey-based research was designed to collect data from 518 UK manufacturing firms. The results indicate that organisations with strong SCO culture are more conducive to increased levels of trust, commitment, cooperative norms, organisational compatibility and managerial support. As such, effective supplier development and integration activities appear to bring about a higher level of internal quality performance. The results also support the moderating effect of SCO culture on the relationship between supplier quality management and internal quality performance. The study highlights the importance of SCO culture – if organisations want to optimise internal quality and organisational performance in a sustainable manner through effective buyer-supplier relationships. This study contributes to the literature by analysing SQM and internal quality performance relationships through the lens of contingency theory and presents empirical evidence in support of the context dependency nature of SQM and its impact on performance. In this respect, a contextual variable theorised as ‘SCO culture’ is conceptualised to understand the SQM – performance relationship.