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Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms

Research output: Contribution to journalArticle

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Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms. / Tse, Ying Kei; Zhang, Minhao; Tan, Kim Hua; Pawar, Kulwant; Fernandes, Kiran.

In: Journal of Business Research, Vol. 97, 01.04.2019, p. 291-303.

Research output: Contribution to journalArticle

Harvard

Tse, YK, Zhang, M, Tan, KH, Pawar, K & Fernandes, K 2019, 'Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms' Journal of Business Research, vol. 97, pp. 291-303. https://doi.org/10.1016/j.jbusres.2018.01.029

APA

Tse, Y. K., Zhang, M., Tan, K. H., Pawar, K., & Fernandes, K. (2019). Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms. Journal of Business Research, 97, 291-303. https://doi.org/10.1016/j.jbusres.2018.01.029

Vancouver

Author

Tse, Ying Kei ; Zhang, Minhao ; Tan, Kim Hua ; Pawar, Kulwant ; Fernandes, Kiran. / Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms. In: Journal of Business Research. 2019 ; Vol. 97. pp. 291-303.

Bibtex

@article{eebfae60dc1142d9bad068d6fba644b8,
title = "Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms",
abstract = "Product harm scandal can be viewed as a company's nightmare. In many cases, the source of defective or unsafe components may not be the manufacturing firm itself; rather, there may be problems inherent in the supply network. This research aims to investigate the effects of two focused risk management practices, namely supplier development and proactive product recall, on firms’ performance. To scrutinise the impact of two types of control mechanisms, we investigate social control and formal control as antecedents of risk management practices, and explore their moderating roles on the relationship between risk management practices and firm performance. Based on the survey-based data obtained from 209 Chinese manufacturers, structural equation modelling and hierarchical regression are used to test the proposed hypotheses. The results show that both supplier development and proactive product recall significantly contribute to financial performance and quality performance. Furthermore, both formal control and social control are the significant antecedents of the two risk management practices. Most importantly, we examine the moderating roles of the control mechanisms on the relationship between the risk management practices and firm performance. Practitioners should be aware that the control mechanisms have different moderating effects, i.e. different type of control mechanism should be employed to facilitate the risk management practices in order to achieve a better firm performance.",
keywords = "Formal control, Product recall management, Risk management, Social control, Supplier development",
author = "Tse, {Ying Kei} and Minhao Zhang and Tan, {Kim Hua} and Kulwant Pawar and Kiran Fernandes",
year = "2019",
month = "4",
day = "1",
doi = "10.1016/j.jbusres.2018.01.029",
language = "English",
volume = "97",
pages = "291--303",
journal = "Journal of Business Research",
issn = "0148-2963",
publisher = "Elsevier Inc.",

}

RIS - suitable for import to EndNote

TY - JOUR

T1 - Managing quality risk in supply chain to drive firm's performance: the roles of control mechanisms

AU - Tse, Ying Kei

AU - Zhang, Minhao

AU - Tan, Kim Hua

AU - Pawar, Kulwant

AU - Fernandes, Kiran

PY - 2019/4/1

Y1 - 2019/4/1

N2 - Product harm scandal can be viewed as a company's nightmare. In many cases, the source of defective or unsafe components may not be the manufacturing firm itself; rather, there may be problems inherent in the supply network. This research aims to investigate the effects of two focused risk management practices, namely supplier development and proactive product recall, on firms’ performance. To scrutinise the impact of two types of control mechanisms, we investigate social control and formal control as antecedents of risk management practices, and explore their moderating roles on the relationship between risk management practices and firm performance. Based on the survey-based data obtained from 209 Chinese manufacturers, structural equation modelling and hierarchical regression are used to test the proposed hypotheses. The results show that both supplier development and proactive product recall significantly contribute to financial performance and quality performance. Furthermore, both formal control and social control are the significant antecedents of the two risk management practices. Most importantly, we examine the moderating roles of the control mechanisms on the relationship between the risk management practices and firm performance. Practitioners should be aware that the control mechanisms have different moderating effects, i.e. different type of control mechanism should be employed to facilitate the risk management practices in order to achieve a better firm performance.

AB - Product harm scandal can be viewed as a company's nightmare. In many cases, the source of defective or unsafe components may not be the manufacturing firm itself; rather, there may be problems inherent in the supply network. This research aims to investigate the effects of two focused risk management practices, namely supplier development and proactive product recall, on firms’ performance. To scrutinise the impact of two types of control mechanisms, we investigate social control and formal control as antecedents of risk management practices, and explore their moderating roles on the relationship between risk management practices and firm performance. Based on the survey-based data obtained from 209 Chinese manufacturers, structural equation modelling and hierarchical regression are used to test the proposed hypotheses. The results show that both supplier development and proactive product recall significantly contribute to financial performance and quality performance. Furthermore, both formal control and social control are the significant antecedents of the two risk management practices. Most importantly, we examine the moderating roles of the control mechanisms on the relationship between the risk management practices and firm performance. Practitioners should be aware that the control mechanisms have different moderating effects, i.e. different type of control mechanism should be employed to facilitate the risk management practices in order to achieve a better firm performance.

KW - Formal control

KW - Product recall management

KW - Risk management

KW - Social control

KW - Supplier development

UR - http://www.scopus.com/inward/record.url?scp=85042108552&partnerID=8YFLogxK

U2 - 10.1016/j.jbusres.2018.01.029

DO - 10.1016/j.jbusres.2018.01.029

M3 - Article

VL - 97

SP - 291

EP - 303

JO - Journal of Business Research

T2 - Journal of Business Research

JF - Journal of Business Research

SN - 0148-2963

ER -