IMPACT OF QUALITY MANAGEMENT PRACTICES ON POSITIONING COMPETENCY OF LOGISTICS SERVICE PROVIDERS IN PAKISTAN
Keywords:
Quality Management, Third Party Logistics (3PL), Malcolm Baldrige National Quality Award (MBNQA), Service Competency, Logistics Service Providers (LSP), China Pakistan Economic Corridor (CPEC).Abstract
The impact of Quality Management (QM) on overall business performance is a widely researched topic in business management subject, but its impact on service competencies of third-party logistics (3PL) service providers is comparatively a far less researched topic. This research is a cross-sectional study giving a current snapshot of the extent of application of various quality management practices and to explore the impact of key dimensions of Malcolm Baldrige National Quality Award (MBNQA) on the positioning competency of the 3PL service providers in Pakistan. In this empirical study, hypotheses were formulated about the association and impact of various quality factors on positioning competency. The results showed a strong and highly significant relationship of QM practices with positioning competency. Further, the impact of these factors as organizational and individual strength was also found significant. The analysis further demonstrated that at an individual level, the customer focus and HR management focus are the two most significant predictors impacting the positioning competency of the 3PL service providers in Pakistan.References
Al-Qahtani, N. D., Alshehri, S. S. A., & Aziz, A. A. (2015). The impact of
Total Quality Management on organizational performance.
European Journal of Business and Management. 7(36), 119-127.
Badri, M. A., Abdulla, M., Kamali, M. A., & Dodeen, H. (2006).
Identifying potential biasing variables in student evaluation of
teaching in a newly accredited business program in the UAE.
International Journal of Educational Management, 20(1), 43-59.
Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating
and sustaining competitive advantage. London: Oxford
University Press.
Bititci, U. S. (2016). Managing business performance: The Science and
the Art. John Wiley & Sons.
Campion, M. A., Fink, A. A., Ruggeberg, B. J., Carr, L., Phillips, G. M., &
Odman, R. B. (2011). Doing Competencies Well: Best Practices
in Competency Modeling. Personnel Psychology, 64(1), 225-262.
Chowdhury, P. P. (2013). Key strategies and issues of positioning: A
review of past studies. American Academic & Scholarly Research
Journal, 5(1), 55.
Ding, M. J. (2011). Factors Affecting Logistics Service Competencies: An
Empirical Study of Logistics Service Providers in China
(Doctoral dissertation, RMIT University).
Ding, M. J., Kam, B. H., & Lalwani, C. S. (2012). Operational routines and
supply chain competencies of Chinese logistics service providers.
The International Journal of Logistics Management, 23(3), 383-407.
Foster, T. C., Johnson, J. K., Nelson, E. C., & Batalden, P. B. (2007). Using
a Malcolm Baldrige framework to understand high-performing
clinical microsystems. BMJ Quality & Safety, 16(5), 334-341.
Goldsby, T. J., & Stank, T. P. (2000). World class logistics performance
and environmentally responsible logistics practices. Journal of
Business Logistics, 21(2), 187- 208.
Hafeez, S., & Muhammad, B. (2012). The Impact of Service Quality,Customer
Satisfaction and Loyalty Programs on Customer’s
Loyalty: Evidence from Banking Sector of Pakistan. International
Journal of Business and Social Science, 3(16), 200-209.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L.
(2006). Multivariate data analysis. (6th ed.). Upper Saddle River,
NJ: Pearson Education International.
Hertz, S., & Alfredsson, M. (2003). Strategic Development of Third-Party
Logistics Providers. Industrial Marketing Management, 32(2), 139-149.
Jaafreh, A. B., & Al-abedallat, A. Z. (2012). The effect of quality management
practices on organizational performance in Jordan: An empirical
study. International Journal of Financial Research, 4(1), 93-109.
Jacob, R., Madu, C. N., & Tang, C. (2004). An empirical assessment of the financial
performance of Malcolm Baldrige Award winners. International Journal
of Quality & Reliability Management, 21(8), 897-914.
Janiszewska, K., & Insch, A. (2012). The strategic importance of brand
positioning in the place brand concept: elements, structure and
application capabilities. Journal of International Studies, 5(1), 9-19.
Joong-Kun-Cho, J., Ozment, J., & Sink, H. (2008). Logistics capability,
logistics outsourcing and firm performance in an e-commerce
market. International Journal of Physical Distribution &
Logistics Management, 38(5), 336-359.
Kalinzi, C. (2016). Outsourcing (Logistics) Services and Supply Chain
Efficiency-A Critical Review of Outsourcing Function in Mukwano
Group of Companies. Journal of Outsourcing & Organizational
Information Management, 16(16), 1-22. Doi: 10.5171/2016.937323
Karia, N., Wong, C. Y., & Asaari, M. H. A. H. (2012). Typology of
resources and capabilities for firms’ performance. Procedia-
Social and Behavioral Sciences, 65(2012), 711-716.
Kotler, P., & Keller, K.L. (2013). Marketing Management. Pearson education.
Kersten, W., & Koch, J. (2010). The effect of quality management on the service
quality and business success of logistics service providers. International
Journal of Quality & Reliability Management, 27(2), 185-200.
Kharub, M., & Sharma, R. (2018). An integrated structural model of
QMPs, QMS and firm’s performance for competitive positioning
in MSMEs. Total Quality Management & Business Excellence,
1-30. https://doi.org/10.1108/JMTM-06-2017-0116
Lai, K. H., Ngai, E. W. T., & Cheng, T. C. E. (2004). An empirical study
of supply chain performance in transport logistics. International
Journal of Production Economics, 87(3), 321-331.
Li, X. (2014). Operations management of logistics and supply chain:
Issues and directions. Discrete Dynamics in Nature and
Society, 2014, 1-7. http://dx.doi.org/10.1155/2014/701938
Maoto, L. W. (2017). Strategic Positioning and Total Quality Management
Strategies and their Impact on Performance in three to five-star
Hotels Headquartered in Nairobi (Doctoral dissertation, School
of Business, University of Nairobi), Nairobi, Kenya.
Markus, L., Thomas, H. C., & Allpress, K. (2005). Confounded by Competencies?
An Evaluation of the Evolution and Use of Competency Models. New
Zealand Journal of Psychology, 34(2), 117-126.
MSUGLRT (Michigan State University. Global Logistics Research Team,
& Council of Logistics Management, US). (1995). World class
logistics: the challenge of managing continuous change. Council
of Logistics Management.
Neuman, S. B., & Dickinson, D. K. (Eds.). (2003). Handbook of early
literacy research (Vol. 1). Guilford Press.
Nguyen, M. H., Phan, A. C., & Matsui, Y. (2018). Contribution of Quality
Management Practices to Sustainability Performance of
Vietnamese Firms. Sustainability, 10(2), 375.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychological theory. (3rd
ed). New York, NY: MacGraw-Hill.
Palpacuer, F. (2000). Competence-Based Strategies and Global Production
Networks a Discussion of Current Changes and Their Implications
for Employment. Competition & Change, 4(4), 353-400.
Poon, W. K., & Tong, C. (2011). Major factors influencing the performance of
local private third-party logistics service providers in Southern
China. Journal of Management Research, 4(1), 1-30.
Punjab Skill Development Fund (PSDF). (2015). Logistics Sector Skills
Needs Assessment Workshop Report, Government of Pakistan.
Qadeer, S. (2014). Service Quality & Customer Satisfaction: A case study
in Banking Sector. Unpublished dissertation. Gavle, Sweden:
University of Gavle.
Sabella, A., Kashou, R., & Omran, O. (2014). Quality management
practices and their relationship to organizational performance.
International Journal of Operations and Production
Management, 34(12), 1487-1505.
Sawaluddin, A., Surachman, R., Djumahi, M., & Mintarti Rahayu, D.
(2013). Quality management practices of Malcolm Baldrige
National Quality Award (MBNQA) studies at college in Southeast
Sulawesi, Indonesia. Int J Bus Manag Invent, 2(11), 11-25.
Shang, K. C., & Marlow, P. B. (2007). Logistics capability and performance
in Taiwan’s major manufacturing firms. Transportation Research
Part E: Logistics and Transportation Review, 41(3), 217-234.
Singh, R. K. (2010). Quality Management and Performance: A Review.
International Journal of Advanced Research in Management
(IJARM), 1(1), 1-19.
Sridevi, J., & Kumar, K. S. (2015). Role of Third-Party Logistics Providers
to Increase Customer Satisfaction in Supply Chain. International
Journal of Applied Engineering Research. 10(68), 830-832.
Sum, C. C., & Teo, C. B. (1999). Strategic posture of logistics service
providers in Singapore. International Journal of Physical
Distribution & Logistics Management, 29(9), 588-605.
Watts, T., & McNair-Connolly, C.J. (2012). New performance
measurement and management control systems. Journal of
Applied Accounting Research, 13(3), 226-241.
Wong, C. Y., & Karia, N. (2010). Explaining the competitive advantage
of logistics service providers: a resource-based view approach.
International Journal of Production Economics, 128(1), 51-67.
Yeung, J. H. Y., Selen, W., Sum, C. C., & Huo, B. (2006). Linking
financial performance to strategic orientation and operational
priorities: an empirical study of third-party logistics
providers. International Journal of Physical Distribution &
Logistics Management, 36(3), 210-230.
Yusoff, W. F. W., & Armstrong, A. (2012). What Competencies Should
Directors Possess? Malaysia Perspective. International Journal
of Business and Management, 7(2), 142-149.
Zacharia, Z. G., Sanders, N. R., & Nix, N. W. (2011). The emerging role
of the third-party logistics provider (3PL) as an orchestrator.
Journal of Business Logistics, 32(1), 40-54.
Zhang, H., and Okoroafo, S. C. (2015). Third-party logistics (3PL) and
supply chain performance in the Chinese market: a conceptual
framework. Engineering Management Research, 4(1), 38-47.
Zhao, X., Flynn, B. B., & Roth, A. V. (2007). Decision sciences research
in China: current status, opportunities, and propositions for
research in supply chain management, logistics, and quality
management. Decision Sciences, 38(1), 39-80.
Total Quality Management on organizational performance.
European Journal of Business and Management. 7(36), 119-127.
Badri, M. A., Abdulla, M., Kamali, M. A., & Dodeen, H. (2006).
Identifying potential biasing variables in student evaluation of
teaching in a newly accredited business program in the UAE.
International Journal of Educational Management, 20(1), 43-59.
Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating
and sustaining competitive advantage. London: Oxford
University Press.
Bititci, U. S. (2016). Managing business performance: The Science and
the Art. John Wiley & Sons.
Campion, M. A., Fink, A. A., Ruggeberg, B. J., Carr, L., Phillips, G. M., &
Odman, R. B. (2011). Doing Competencies Well: Best Practices
in Competency Modeling. Personnel Psychology, 64(1), 225-262.
Chowdhury, P. P. (2013). Key strategies and issues of positioning: A
review of past studies. American Academic & Scholarly Research
Journal, 5(1), 55.
Ding, M. J. (2011). Factors Affecting Logistics Service Competencies: An
Empirical Study of Logistics Service Providers in China
(Doctoral dissertation, RMIT University).
Ding, M. J., Kam, B. H., & Lalwani, C. S. (2012). Operational routines and
supply chain competencies of Chinese logistics service providers.
The International Journal of Logistics Management, 23(3), 383-407.
Foster, T. C., Johnson, J. K., Nelson, E. C., & Batalden, P. B. (2007). Using
a Malcolm Baldrige framework to understand high-performing
clinical microsystems. BMJ Quality & Safety, 16(5), 334-341.
Goldsby, T. J., & Stank, T. P. (2000). World class logistics performance
and environmentally responsible logistics practices. Journal of
Business Logistics, 21(2), 187- 208.
Hafeez, S., & Muhammad, B. (2012). The Impact of Service Quality,Customer
Satisfaction and Loyalty Programs on Customer’s
Loyalty: Evidence from Banking Sector of Pakistan. International
Journal of Business and Social Science, 3(16), 200-209.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L.
(2006). Multivariate data analysis. (6th ed.). Upper Saddle River,
NJ: Pearson Education International.
Hertz, S., & Alfredsson, M. (2003). Strategic Development of Third-Party
Logistics Providers. Industrial Marketing Management, 32(2), 139-149.
Jaafreh, A. B., & Al-abedallat, A. Z. (2012). The effect of quality management
practices on organizational performance in Jordan: An empirical
study. International Journal of Financial Research, 4(1), 93-109.
Jacob, R., Madu, C. N., & Tang, C. (2004). An empirical assessment of the financial
performance of Malcolm Baldrige Award winners. International Journal
of Quality & Reliability Management, 21(8), 897-914.
Janiszewska, K., & Insch, A. (2012). The strategic importance of brand
positioning in the place brand concept: elements, structure and
application capabilities. Journal of International Studies, 5(1), 9-19.
Joong-Kun-Cho, J., Ozment, J., & Sink, H. (2008). Logistics capability,
logistics outsourcing and firm performance in an e-commerce
market. International Journal of Physical Distribution &
Logistics Management, 38(5), 336-359.
Kalinzi, C. (2016). Outsourcing (Logistics) Services and Supply Chain
Efficiency-A Critical Review of Outsourcing Function in Mukwano
Group of Companies. Journal of Outsourcing & Organizational
Information Management, 16(16), 1-22. Doi: 10.5171/2016.937323
Karia, N., Wong, C. Y., & Asaari, M. H. A. H. (2012). Typology of
resources and capabilities for firms’ performance. Procedia-
Social and Behavioral Sciences, 65(2012), 711-716.
Kotler, P., & Keller, K.L. (2013). Marketing Management. Pearson education.
Kersten, W., & Koch, J. (2010). The effect of quality management on the service
quality and business success of logistics service providers. International
Journal of Quality & Reliability Management, 27(2), 185-200.
Kharub, M., & Sharma, R. (2018). An integrated structural model of
QMPs, QMS and firm’s performance for competitive positioning
in MSMEs. Total Quality Management & Business Excellence,
1-30. https://doi.org/10.1108/JMTM-06-2017-0116
Lai, K. H., Ngai, E. W. T., & Cheng, T. C. E. (2004). An empirical study
of supply chain performance in transport logistics. International
Journal of Production Economics, 87(3), 321-331.
Li, X. (2014). Operations management of logistics and supply chain:
Issues and directions. Discrete Dynamics in Nature and
Society, 2014, 1-7. http://dx.doi.org/10.1155/2014/701938
Maoto, L. W. (2017). Strategic Positioning and Total Quality Management
Strategies and their Impact on Performance in three to five-star
Hotels Headquartered in Nairobi (Doctoral dissertation, School
of Business, University of Nairobi), Nairobi, Kenya.
Markus, L., Thomas, H. C., & Allpress, K. (2005). Confounded by Competencies?
An Evaluation of the Evolution and Use of Competency Models. New
Zealand Journal of Psychology, 34(2), 117-126.
MSUGLRT (Michigan State University. Global Logistics Research Team,
& Council of Logistics Management, US). (1995). World class
logistics: the challenge of managing continuous change. Council
of Logistics Management.
Neuman, S. B., & Dickinson, D. K. (Eds.). (2003). Handbook of early
literacy research (Vol. 1). Guilford Press.
Nguyen, M. H., Phan, A. C., & Matsui, Y. (2018). Contribution of Quality
Management Practices to Sustainability Performance of
Vietnamese Firms. Sustainability, 10(2), 375.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychological theory. (3rd
ed). New York, NY: MacGraw-Hill.
Palpacuer, F. (2000). Competence-Based Strategies and Global Production
Networks a Discussion of Current Changes and Their Implications
for Employment. Competition & Change, 4(4), 353-400.
Poon, W. K., & Tong, C. (2011). Major factors influencing the performance of
local private third-party logistics service providers in Southern
China. Journal of Management Research, 4(1), 1-30.
Punjab Skill Development Fund (PSDF). (2015). Logistics Sector Skills
Needs Assessment Workshop Report, Government of Pakistan.
Qadeer, S. (2014). Service Quality & Customer Satisfaction: A case study
in Banking Sector. Unpublished dissertation. Gavle, Sweden:
University of Gavle.
Sabella, A., Kashou, R., & Omran, O. (2014). Quality management
practices and their relationship to organizational performance.
International Journal of Operations and Production
Management, 34(12), 1487-1505.
Sawaluddin, A., Surachman, R., Djumahi, M., & Mintarti Rahayu, D.
(2013). Quality management practices of Malcolm Baldrige
National Quality Award (MBNQA) studies at college in Southeast
Sulawesi, Indonesia. Int J Bus Manag Invent, 2(11), 11-25.
Shang, K. C., & Marlow, P. B. (2007). Logistics capability and performance
in Taiwan’s major manufacturing firms. Transportation Research
Part E: Logistics and Transportation Review, 41(3), 217-234.
Singh, R. K. (2010). Quality Management and Performance: A Review.
International Journal of Advanced Research in Management
(IJARM), 1(1), 1-19.
Sridevi, J., & Kumar, K. S. (2015). Role of Third-Party Logistics Providers
to Increase Customer Satisfaction in Supply Chain. International
Journal of Applied Engineering Research. 10(68), 830-832.
Sum, C. C., & Teo, C. B. (1999). Strategic posture of logistics service
providers in Singapore. International Journal of Physical
Distribution & Logistics Management, 29(9), 588-605.
Watts, T., & McNair-Connolly, C.J. (2012). New performance
measurement and management control systems. Journal of
Applied Accounting Research, 13(3), 226-241.
Wong, C. Y., & Karia, N. (2010). Explaining the competitive advantage
of logistics service providers: a resource-based view approach.
International Journal of Production Economics, 128(1), 51-67.
Yeung, J. H. Y., Selen, W., Sum, C. C., & Huo, B. (2006). Linking
financial performance to strategic orientation and operational
priorities: an empirical study of third-party logistics
providers. International Journal of Physical Distribution &
Logistics Management, 36(3), 210-230.
Yusoff, W. F. W., & Armstrong, A. (2012). What Competencies Should
Directors Possess? Malaysia Perspective. International Journal
of Business and Management, 7(2), 142-149.
Zacharia, Z. G., Sanders, N. R., & Nix, N. W. (2011). The emerging role
of the third-party logistics provider (3PL) as an orchestrator.
Journal of Business Logistics, 32(1), 40-54.
Zhang, H., and Okoroafo, S. C. (2015). Third-party logistics (3PL) and
supply chain performance in the Chinese market: a conceptual
framework. Engineering Management Research, 4(1), 38-47.
Zhao, X., Flynn, B. B., & Roth, A. V. (2007). Decision sciences research
in China: current status, opportunities, and propositions for
research in supply chain management, logistics, and quality
management. Decision Sciences, 38(1), 39-80.
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