- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
An Empirical Study on the Impact of Quality Oriented Corporate Culture on Sustainability Management Performances
Park, Jong-Woo
Jung, Byeong-Yeong
Abstract
Purpose - Environmental issues, climatic changes, and greenhouse gases are problems to be solved at a global level. With an increased emphasis on the environmental and social responsibility of the management of companies, the manner in which companies approach quality-oriented culture and their individual sustainability management are being discussed as truly important issues to help them secure their competitiveness and growth strategies. This study proposes strategic directions to help manufacturers not only in expanding their competitive quality-oriented company culture but also in strengthening their sustainability management abilities. This study conducts a literature review and empirical research to examine how significantly the variables of a quality-oriented company culture, customer-centered management, and process-centered and supply chain management-centered cooperation affect sustainability management performance in relation to economic profitability, environmental integrity, and social responsibility. Research design, data, and methodology - To verify research models and hypotheses, the study examined 170 companies using a questionnaire survey conducted over six weeks, and involved the performance of data analysis on 146 samples. Questionnaire responses were calibrated based on a Likert scale. The study used the Smart PLS 2.0 program designed for PLS (partial least squares), an analysis instrument of SEM (structural equation modeling). The study then verified empirical research hypotheses working on reliability analysis, validity analysis, factorial analysis, and path analysis. Results - Among the nine hypotheses, four are accepted and the rest are rejected. A quality-oriented company culture focusing on customer-centered management significantly influenced the maintainability management performance of environmental integrity and social responsibility, while economic profitability was dismissed. A process-focused quality-oriented company culture was significantly concerned with economic profitability but not with environmental integrity or social responsibility. A supply-chain cooperative company culture had a significant effect on economic profitability but not on environmental integrity or social responsibility. Conclusion - This study proposes strategic directions to help manufacturers expand their competitive quality-oriented company culture as well as strengthen abilities with sustainability management. It conducts a literature review and empirical research to examine how significantly the variables of quality-oriented company culture, customer-centered management, and process-centered and supply chain management-centered cooperation affect sustainability management performance in relation to economic profitability, environmental integrity, and social responsibility. There are two main conclusions. First, companies should consider the need for social responsibility management and environmental transparent management-focused maintainability management as avenues to create new markets and business, thereby helping the companies secure a reputation for having a customer and process-centered quality-oriented company culture by creating shared values between supply chains and enabling win-win situations through cooperation. Second, we are marching towards a creative win-win era from a society of conflicts and ruptures. Companies should understand that social responsibility management and supply chain management (SCM)-focused cooperation are the foundations of sustainable development, as they try to improve their culture while pursuing both win-win relationships with interested parties and equity in various conflictive relations.
- keywords
- Quality Oriented Corporate Culture, Sustain-ability Management, Customer Satisfaction Oriented, Supply Chain Collaboration, Social Responsibility
Reference
Baimukhamedova, Gulzada S., Nurlanova, Nailya K., &Akhmetova, S. (2012). Estimation of the level of sustainable development in Kazakhstan regions and recommendation for its increase. Journal of Distribution Science. 10(7), 23-31.
Barclay, D., Higgins, C., & Thompson, R. (1995). The partial least squares (PLS) approach to causal modeling personal computer adoption and use as an illustration. Technology Studies, 2(2), 285-309.
Bowen, P. W. (1996). The need for quality cultures. Training for Quality, 4(2), 14-18.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate social performance. Academy of Management. Academy of Management Review, 4(4), 497.
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
Choi, S. K., & Ha, M. S. (2011). The impact of relational characteristics in logistics firm on collaboration and performance. Journal of Korea Port Economic Association, 27(3), 13-39.
Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. Hillsdale, N.J.: L. Erlbaum Associates.
Deal, T. E., & Kennedy, A. A. (1982). Corporate cultures: The rites and rituals of corporate life. Harmondsworth, UK:Penguin Books.
Elliott, G. (2003). The race to six sigma. Industrial Engineer, 35(10), 30-34.
Flynn, B. B., Schroeder, R. G., and Sakakibara, S. (1994). A framework for quality management research and an associated measurement instrument, Journal of Operations Management, 11(4), 339-336.
Fornell, C., & Bookstein, F. L. (1981). Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research, 19(4), 440-452.
Fox, R. (1991). Making quality happen: six steps to total quality management. Sydney: McGraw-Hill.
Ghobadian, A., & Chartered Institute of Management Accountants (1998). Total quality management: Impact, introduction and integration strategies. London: Chartered Institute of Management Accountants.
Hammer, M., & Champy, J. (1993). Reengineering The Corporation. London: N. Brealey.
Harry, M. J. (1998). Six sigma: A break through strategy for profitability. Quality Progress, 31(5), 60-64.
Heide, J. B., & John, G. (1990). Alliances in industrial purchasing:The determinants of joint action in buyer-supplier relationships. JMR, Journal of Marketing Research, 27(1), 24.
Hofstede, G. (1983). The cultural relativity of organizational practices and theories. Journal of International Business Studies (Pre-1986), 14(2), 75.
Jang, K. Y. (2009). An empirical study on relationship between environmental management strategy and sustainable development. Journal of environmental policy, 8(3), 81-113.
Johnston, D. A., McCutcheon, D. M., Stuart, F. I., & Kerwood, H. (2004). Effects of supplier trust on performance of cooperative supplier relationships. Journal of Operations Management, 22(1), 23-38.
Marien, E. J. (2000). The four supply chain enablers. Supply Chain Management Review, 2(3). 60-68.
Mentzer, J. T., Min, S., & Zacharia, Z. G. (2000). The nature of interfirm partnering in supply chain management. Journal of Retailing, 76(4), 549-568.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20.
Morris, A., Fisher, T., & Crawford, J. (1997). Quality culture and the management of organization change. The International Journal of Quality & Reliability Management, 14(6), 616-636.
Nunnally, J. C. (1978). Psychometric Theory, New York:McGraw-Hill.
Piechocki, R. (2004). Transparency of annual sustainability reports. Corporate Reputation Review, 7(2), 107-123.
Reed, D. J. (2001). Stalking the Elusive Business Case for Corporate Sustainability, Washington, D.C. : World Resources Institute.
Sanchez-Fernandez, R., & Angeles Iniesta-Bonillo, M. (2007). The concept of perceived value: A systematic review of the research. Marketing Theory, 7(4), 427-451.
Saraph, J. V., Benson, P. G., & Schroeder, R. G. (1989). An instrument for measuring the critical factors of quality management. Decision Sciences, 20(4), 810-829.
Sheu, C., Yen, H. R., & Chae, B. (2006). Determinants of supplier retailer collaboration: evidence from an international study. International Journal of Operations and Production Management, 26(1), 24-29.
Shortell, S. M., O'Brien, J. L., Carman, J.M., Foster, R. W., Hughes, E. F. X., Boerstler, H., and O'Connor, E. J. (1995). Assessing the impact of continuous quality improvement/total quality management: Concept versus implementation. Health Services Research, 30(2), 377-401.
Sila. I., & Ebrahimpour. M. (2002). An investigation of the total quality management survey based research published between 1989 and 2000: A literature review. The International Journal of Quality & Reliability Management, 19(6-7), 902-970.
Simatupang. T. M., & Sridharan. R. (2004). Benchmarking supply chain collaboration: An empirical study. Benchmarking Bradford, 11(5), 484-503.
Son, S. J. & Lee, N. J. (2007). The effects of quality orientation and corporate culture on quality management and business performances. Korean Accounting Journal, 18(2), 33-77.
Terpstra, V., & David, K. (1985). The cultural Environment of International Business. West Chicago: South-Western Publishing Co.
Won, Y. Y., Park, J. W., Song, G. S., & Shin, H. C. (2013). A study on the effects of the manufacturer's market orientation on quality management activity and business performance. Journal of Distribution Science, 11(6), 81-89.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations