Examining Supplier-side Quality Management in the Chinese Automobile Market

Jiayao Hu, C Braziotis, Kim Hua Tan

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Purpose of this paper:
Since 2009, China has become the world’s largest automobile producer and market. As
the assembler is normally in charge of assembling and stamping works, the supply of
components becomes a fundamental process of ensuring desirable quality. Supplier-Side
Quality Management (SSQM) practices vary, among others, by business structure and
supply chain position (Dellana and Kros, 2014). However, the dynamics of SSQM have
mainly been empirically researched on buyers and suppliers that are typically not related
in some forms of an identifiable direct exchange (Ambrose et al., 2010). In order to fill
this gap, we aimed to compare two dyadic relationships: one Chinese Self-Owned Brand
(CSB) (and one of its suppliers) with one Chinese-Japanese Joint Venture (CJJV) (and
one of its suppliers) by analysing their SSQM practices and performances. This
comparative study aims to answer two research questions: 1) How do SSQM practices
differ? 2) Why do such differences occur?
Design/methodology/approach:
In order to answer our research questions, case study was employed (Yin, 2013). Data
was collected from semi-structured interviews, company documents, and observations to
enhance data triangulation. An interview protocol was developed from the review of
relevant literature, and a systematic data analysis process was employed, on both the
within and the cross case levels.
Findings:
Our research elaborates on the differences between operations capability and quality
culture aspect in supply chain relationships in the Chinese automobile market. The
comparison also reveals the diverse operational and strategic SSQM practices in supplier
selection, supplier support, supplier communication, and supplier involvement. Based on
these findings, a comprehensive framework is developed to assist in better
understanding SSQM in China.
Value:
This comparative study empirically investigates the SSQM of buyer and supplier in the
same relationship, and contributes to academic understanding of relevant factors in the
Chinese automobile industry. It also provides insights into the expectations and
perceptions of relationship partners. Moreover, this research should help managers in
recognising best practices in SSQM and in identifying improvement directions.
Research limitations/implications (if applicable):
This research focused on two dyadic relationships (i.e. CSB-Supplier; CJJV-Supplier);
therefore, more relationships with diverse characteristics should be included into future research. Furthermore, to test the generalizability of the results, other methodological
approaches such as a large survey could also be conducted.
Practical implications (if applicable):
This paper provides empirical evidence explaining how and why CSB differs from CJJV in
SSQM to quality and supply chain managers. Moreover, firms need to recognise their
capability and quality culture and act accordingly.
Original languageEnglish
Title of host publicationThe Proceedings of 21st International Symposium on Logistics (ISL 2016)
EditorsK.S. Pawar, K.M. Tsai
Place of PublicationNottingham, UK
PublisherNottingham University Press
Pages126-134
Number of pages8
ISBN (Print)13 9780853583172
Publication statusPublished - 2016
Event21st International Symposium on Logistics: Sustainable Transport and Supply Chain Innovation - Kaohsiung, China
Duration: 3 Jul 20166 Jul 2016

Conference

Conference21st International Symposium on Logistics: Sustainable Transport and Supply Chain Innovation
CountryChina
CityKaohsiung
Period3/07/166/07/16

Fingerprint

Automobile market
Suppliers
Supplier management
Quality management
Management practices
Joint ventures
Buyers
Dyadic relationships
Managers
China
Supply chain
Structured interview
Empirical evidence
Supply chain relationships
Supplier involvement
Design methodology
Literature review
Generalizability
Communication
Triangulation

Cite this

Hu, J., Braziotis, C., & Tan, K. H. (2016). Examining Supplier-side Quality Management in the Chinese Automobile Market. In K. S. Pawar, & K. M. Tsai (Eds.), The Proceedings of 21st International Symposium on Logistics (ISL 2016) (pp. 126-134). Nottingham, UK: Nottingham University Press.

Examining Supplier-side Quality Management in the Chinese Automobile Market. / Hu, Jiayao; Braziotis, C; Tan, Kim Hua.

The Proceedings of 21st International Symposium on Logistics (ISL 2016). ed. / K.S. Pawar; K.M. Tsai. Nottingham, UK : Nottingham University Press, 2016. p. 126-134.

Research output: Chapter in Book/Report/Conference proceedingChapter

Hu, J, Braziotis, C & Tan, KH 2016, Examining Supplier-side Quality Management in the Chinese Automobile Market. in KS Pawar & KM Tsai (eds), The Proceedings of 21st International Symposium on Logistics (ISL 2016). Nottingham University Press, Nottingham, UK, pp. 126-134, 21st International Symposium on Logistics: Sustainable Transport and Supply Chain Innovation, Kaohsiung, China, 3/07/16.
Hu J, Braziotis C, Tan KH. Examining Supplier-side Quality Management in the Chinese Automobile Market. In Pawar KS, Tsai KM, editors, The Proceedings of 21st International Symposium on Logistics (ISL 2016). Nottingham, UK: Nottingham University Press. 2016. p. 126-134
Hu, Jiayao ; Braziotis, C ; Tan, Kim Hua. / Examining Supplier-side Quality Management in the Chinese Automobile Market. The Proceedings of 21st International Symposium on Logistics (ISL 2016). editor / K.S. Pawar ; K.M. Tsai. Nottingham, UK : Nottingham University Press, 2016. pp. 126-134
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N2 - Purpose of this paper:Since 2009, China has become the world’s largest automobile producer and market. Asthe assembler is normally in charge of assembling and stamping works, the supply ofcomponents becomes a fundamental process of ensuring desirable quality. Supplier-SideQuality Management (SSQM) practices vary, among others, by business structure andsupply chain position (Dellana and Kros, 2014). However, the dynamics of SSQM havemainly been empirically researched on buyers and suppliers that are typically not relatedin some forms of an identifiable direct exchange (Ambrose et al., 2010). In order to fillthis gap, we aimed to compare two dyadic relationships: one Chinese Self-Owned Brand(CSB) (and one of its suppliers) with one Chinese-Japanese Joint Venture (CJJV) (andone of its suppliers) by analysing their SSQM practices and performances. Thiscomparative study aims to answer two research questions: 1) How do SSQM practicesdiffer? 2) Why do such differences occur?Design/methodology/approach:In order to answer our research questions, case study was employed (Yin, 2013). Datawas collected from semi-structured interviews, company documents, and observations toenhance data triangulation. An interview protocol was developed from the review ofrelevant literature, and a systematic data analysis process was employed, on both thewithin and the cross case levels.Findings:Our research elaborates on the differences between operations capability and qualityculture aspect in supply chain relationships in the Chinese automobile market. Thecomparison also reveals the diverse operational and strategic SSQM practices in supplierselection, supplier support, supplier communication, and supplier involvement. Based onthese findings, a comprehensive framework is developed to assist in betterunderstanding SSQM in China.Value:This comparative study empirically investigates the SSQM of buyer and supplier in thesame relationship, and contributes to academic understanding of relevant factors in theChinese automobile industry. It also provides insights into the expectations andperceptions of relationship partners. Moreover, this research should help managers inrecognising best practices in SSQM and in identifying improvement directions.Research limitations/implications (if applicable):This research focused on two dyadic relationships (i.e. CSB-Supplier; CJJV-Supplier);therefore, more relationships with diverse characteristics should be included into future research. Furthermore, to test the generalizability of the results, other methodologicalapproaches such as a large survey could also be conducted.Practical implications (if applicable):This paper provides empirical evidence explaining how and why CSB differs from CJJV inSSQM to quality and supply chain managers. Moreover, firms need to recognise theircapability and quality culture and act accordingly.

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