Effects of Total Quality Management Implementation and Supply Chain Management Capability on Customer Capital
Using structural equation modeling, this study attempts to find the relationship among total quality management (TQM) implementation, supply chain management (SCM) capability, and customer capital (CC) so as to highlight a number of concerns with regard to this type of research. A serious methodology is employed to create a reliable and valid measurement instrument. The researchers collected 830 valid questionnaires from manufacturing companies in Taiwan, and results show that TQM implementation has a positive influence on SCM capability and on CC. Based on this finding, this research suggests that organizations are more concerned about continuous improvement and customer focus than product innovation, benchmarking, supplier quality management, employee training, top management commitment, employee involvement, and compensation system.Results also show that SCM capability has a positive influence on CC and suggests that organizations should focus more on inside out capabilities than spanning capabilities, and outside in capability. This study sheds light that an organization should develop TQM implementation and SCM capabilities in order to create CC and achieving organizational goals.