ENHANCING THE FIRMS PERFORMANCE THROUGH QUALITY AND SUPPLY BASE MANAGEMENT - AN EMPIRICAL-STUDY

Over the past ten years, both total quality management and supply base management have become significant strategic tools for firms that are striving to achieve competitive success. This study examines firms' o perational quality approaches, supplier evaluation practices, and supp ly base management activities, and relates these strategic initiatives to firm performance. Hypotheses were tested through the use of bivari ate correlation, factor analysis and multiple regression analysis of s urvey data from a cross-industry sample of quality directors and vice presidents in US firms. While many strategic quality approaches and su pply base management tools are positively correlated with firm perform ance, our results show that quality management and supply base managem ent techniques and tools must be implemented conjointly to achieve sup erior financial and business performance. The implication is that mana gers must seek to integrate the activities of quality assurance with t hose of purchasing and materials management.