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A structural approach to integrating total quality
management and knowledge management with supply chain
learning.
1. Introduction
The success of supply chain management (SCM (1) (Software Configuration Management, Source
Code Management) See configuration management.
(2) See supply chain management. ) depends largely on the firm's efficiency in managing its
processes. SCM is regarded as a powerful vehicle in cost reduction overall and performance
improvement. It can also increase a firm's competitiveness if it is well-managed. The origin of SCM
is perceived to derive from logistics management Logistics Management is that part of Supply Chain
Management that plans, implements, and controls the efficient, effective, forward, and reverse flow
and storage of goods, services, and related information between the point of origin and the point of
consumption in order to meet  (Lee, Kincade 2003; Cox 1999; Tan TAN
See tax anticipation note (TAN). Â et al. 2002) and Romano and Vinelli (2001) referred it as
integrated logistics management. SCM has evolved from a functional focus to cross-functional
collaborations. This collaborative strategy has gained popularity among supply chain firms
particularly due to the need for global market presence and increased customer demands. Effective
collaboration are useful for capturing cost savings, enhancing customer satisfaction, facilitating
synergies, adding value to all supply chain partners and ultimately remaining competitive in the
industry. Slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but
not actually used to store useful information.
2. (jargon) slack , Chambers and Johnston (2004) argued that supply chain activities consist of
purchase and supply management, physical distribution management, logistics and material
management. Overall, SCM includes the sourcing of raw materials, productions, new product
development and commercialization, sales and marketing, product returns and recycling
recycling, the process of recovering and reusing waste products--from household use,
manufacturing, agriculture, and business--and thereby reducing their burden on the environment. ,
and managing supplier and customer relations (Lockamy, McCormack 2004; Mills et al. 2004; Talib
et al. 2011).
Networking and collaboration enhance firm's performance. Literature within SCM documented the
need for cooperation due to the emergence of quality management philosophies. Therefore, this has
resulted the study on the linkages between adoption of total quality management (TQM (Total
Quality Management) An organizational undertaking to improve the quality of manufacturing and
service. It focuses on obtaining continuous feedback for making improvements and refining existing
processes over the long term. See ISO 9000. ) practices and organizational outcomes such as
learning and knowledge transfer. Interestingly, Sohal and Morrison (1995) highlighted that TQM
initiatives can only lead to organizational learning if such quality efforts are supported with a
conducive con·du·cive Â
adj.
Tending to cause or bring about; contributive: working conditions not conducive to
productivity. See Synonyms at favorable.  environment that can help firms to emerge as learning
organizations and continuously to acquire new knowledge about customers, suppliers, processes and
employees. A recent study by Vanichchinchai and Igel (2009) suggested that TQM and SCM share
similar characteristics which both involve internal function participations and external partnerships.
They added that while the main focus of TQM is on participation from all internal function, the SCM
put emphasis on continuous collaboration with external partners.
TQM and SCM are said to be the most important strategies for many different companies: from
small-to-medium sized enterprises (SMEs) to giant manufacturers and servicing companies. TQM are
often applied for process variance reduction In mathematics, more specifically in the theory of
Monte Carlo methods, variance reduction is a procedure used to increase the precision of the
estimates that can be obtained for a given number of iterations. Â which is directly linked to supply
chain performance measures such as cycle time, order fulfillment Order fulfillment (in BE also: order
fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery
of a product to the customer. Sometimes Order fulfillment  and delivery dependability
dependability - software reliability . Embracement of quality initiatives within SCM practices aims to
achieve better product quality and development (Carmignani 2009). According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Â Dick (2000), firms with a strong commitment to TQM have better business performance
improvement than firms who only possessed QCert (e.g. ISO (1) See ISO speed.
(2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An
organization that sets international standards, founded in 1946. The U.S. member body is ANSI.
 9000 certification). Kuei, Madu and Lin (2001) found that supply chain quality factors have
positive impact on organizational performance. To a certain extent, SCM relies on TQM to effectively
integrate suppliers, manufacturers, distributors and customers. Improvements in supplier quality
management, customers' relations and supplier selection contribute to increased organizational
performance (Kuei et al. 2001).
The quality perspective of supply chain management claims that focuses on quality management
practices is a critical success factor to the firm because better product would lead to new customer
attraction and retention of existing customers (Kordupleski et al. 1993; Kuei et al. 2001). Since TQM,
learning and knowledge management (KM) drawing from a common notion--organizational
development (Zetie 2002), it is logical to examine if there is a linkage exists between these concepts,
and if so, what would be the direction of the relationships. Learning involves the accumulation of
knowledge and it helps firms to create new knowledge-related capabilities. Nielsen (2005) added
that these capabilities can be in the form of tacit and fairly dynamic in nature. Efficient KM in supply
chains enhance firm innovation and creativity to survive in today's rapidly changing business world
(Maqsood et al. 2007; Sambasivan et al. 2009). Schein (2002) noted the difficulty in establishing a
learning organization although knowledge is known to be a powerful source of firms'
competitiveness. It is even more challenging to expand the learning behavior across different
organizational boundaries. This is because firms are encouraged to learn and acquire skills,
products, technology and knowledge through value creating activities (Spekman et al. 2002)
meanwhile striving to keep their own proprietary information and core competencies. Jabar, Soosay
and Santa (2011) argued that firms are more protective of their knowledge when their partners have
high learning intent. However, high levels of trust between these partners foster continuous
information sharing See data conferencing. Â and exchange.
While supply chains provide an environment where the partnering members can benefit from
learning processes based on the transfer of skills and knowledge (Sambasivan et al. 2009), different
levels of absorptive capacity In business administration, absorptive capacity is theory or model used
to measure a firm's ability to value, assimilate, and apply new knowledge. It is studied on multiple
levels (individual, group, firm, and national level). Â among these members can complicate
com·pli·cate Â
tr. & intr.v. com·pli·cat·ed, com·pli·cat·ing, com·pli·cates
1. To make or become complex or perplexing.
2. To twist or become twisted together.
adj.
1. Â the knowledge acquisition process. Simply, some firms learn better and faster than others. Prior
researchers, such as Cohen cohen
 or kohen
(Hebrew: "priest") Jewish priest descended from Zadok (a descendant of Aaron), priest at the First
Temple of Jerusalem. The biblical priesthood was hereditary and male. Â and Levinthal (1990) and
Lane, Salk and Lyles (2001) have described it as a firm's absorptive capacity. Cohen and Levinthal
(1990) defined absorptive capacity as the level of knowledge overlap between partners, including
the ability of a firm to value, assimilate as·sim·i·late
v.
1. To consume and incorporate nutrients into the body after digestion.
2. To transform food into living tissue by the process of anabolism. Â and commercially utilize new,
external knowledge. In the present study, we included the concept of absorptive capacity as a
component of learning within the supply chain.
The aims of this study are twofold: first, we sought to develop an integrated TQM and KM model of
supply chain learning (SCL (1) (Switch-to-Computer Link) Refers to applications that integrate the
computer through the PBX. See switch-to-computer.
(2) A file extension used for ColoRIX bitmapped graphics file format (640x400 256 colors).
(language) SCL - 1. ). Second, we empirically tested the integrated model using data drawn from
both manufacturing and services firms through structural model. The following section describes the
literature review of the studied variables and details the construction of the model and formulation
formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating.
American Law Institute Formulation  of hypotheses. Finally, we present the data analysis, research
findings and discussion, including directions for future research.
2. Literature review
2.1. Total quality management
Firms today are facing on-going challenges from global competition and more sophisticated
customers in terms of what they want and need (McAdam, Henderson 2004; Tan et al. 2002). Many
firms adopt quality management programs in order to achieve high degree of differentiation and to
reduce costs (Tari 2005). TQM refers to a management approach to planning and implementing
continuous improvement throughout the entire firm for performance improvement (Claver-Cortes et
al. 2008; Teh et al. 2008). According to Tari (2005), there are standardized models to guide firms in
implementing and self-assess their quality practices, including those associated to the Malcolm
Baldrige National Quality Award The Malcolm Baldrige National Quality Award is given by the
United States National Institute of Standards and Technology. Through the actions of the National
Productivity Advisory Committee chaired by Jack Grayson, it was established by the Malcolm
Baldrige National Quality  (MBNQA MBNQA Malcolm Baldrige National Quality Award ) in the
USA, the European Foundation for Quality Management (EFQM EFQM European Foundation for
Quality Management ) in Europe and the Deming Application Prize in Japan.
Numerous studies have been carried out to examine critical success factors for TQM
implementation, tools and techniques for quality improvement, different categories of TQM practices
and the evaluation of TQM implementation in various industry settings, including services sectors. A
recent study by Talib et al. (2011) reported an intensive review of TQM, finding that top
management commitment, customer focus, training and education, continuous improvement and
innovation, supplier management, and employee involvement are major practices for TQM.
In this study, we adopt an approach similar to those used in previous research (e.g. Choi, Eboch
1998; Samson, Terziovski 1999; Prajogo, Sohal 2003; Lee et al. 2003; Hsieh et al. 2007; Prajogo,
Hong 2008; Teh et al. 2008) in describing TQM practices. The six constructs are leadership,
strategic planning Strategic planning is an organization's process of defining its strategy, or
direction, and making decisions on allocating its resources to pursue this strategy, including its
capital and people. , customer focus, process management, information analysis and human resource
focus.
2.2. Knowledge management
KM emerged as a distinct management discipline when firms began shifting their focus from
traditional factors of production to intangible assets such knowledge and goals focused on
continuously meeting and exceeding customer's needs (Nielsen 2005; Jasimuddin 2008; Loke et al.
2010). Research in the areas of organizational learning and knowledge management are said to have
developed in the 1960s (Cyert, March 1963). Zack, Mckeen and Singh (2009) noted that published
work in the KM area consists conceptual frameworks, theoretical models and empirical research
Noun 1. empirical research - an empirical search for knowledge
inquiry, research, enquiry - a search for knowledge; "their pottery deserves more research than it
has received" Â that relies largely on qualititative case studies.
KM is a core competency A core competency is something that a firm can do well and that meets the
following three conditions specified by Hamel and Prahalad (1990):
It provides customer benefits
It is hard for competitors to imitate
It can be leveraged widely to many products and markets.
 for firms in the era of knowledge-based economies (Chong, C. W.; Chong, S. C. 2009; Grant,
Baden-Fuller 2004; Johannessen, Olsen 2003). Knowledge workers are frequently to be key assets in
a knowledge-based society (Drucker 1993). Although there the direct relationship between KM
practices and financial performance has been elusive, Zack et al. (2009) established a positive direct
relationship between KM practices and organizational performance which, in turn, directly
influences financial performance. Ho (2008) reported that firms can create syneristic effects on
performance through implementation of external tacit-internal-oriented and explicit-externa-
-oriented KM strategies.
KM is important for firms wishing to operate in a rapidly changing business environment as it
enchances firms' abilities to strategically leverage knowledge to be their main source of competitive
advantages. According to Lin (2011), "KM practices aim to see individual knowledge become group
and organizational knowledge over time, which in turn improves the stock of knowledge available to
the firm" (p. 136). The present study views KM practices in the same way. We hypothesized that the
benefits of individual knowledge accumulation within a firm can be extended to improved
performance of the supply chain members.
2.3. Supply chain learning
Much of the existing literature on KM has paid little attention to learning specifically dedicated to
the supply chain. Yet, it is becoming clear that firms operate within a value stream that involves
other firms within a business network (Bessant et al. 2003). Bessant et al. (2003) argued that shared
learning between firms offers potential as a mechanism to enhance firm's competitiveness. Learning
facilitates international joint venture partners to gain access to others' know-how or resources
(Akande et al. 2010).
Work by Claycomb, Droge, and Germain (2001) and Spekman et al. (2002) pioneered the conceptual
development of supply chain learning (SCL). Claycomb et al. (2001) classified knowledge applied to
facilitated exchange within supply chains to: (1) upstream From the consumer to the provider. See
downstream.
(networking) upstream - Fewer network hops away from a backbone or hub. For example, a small
ISP that connects to the Internet through a larger ISP that has their own connection to the backbone
is downstream from the larger , where exchange happens between the firm and its suppliers; (2)
within the firm itself where exchange happens to enhance its operation; and (3) downstream From
the provider to the customer. Downloading files and Web pages from the Internet is the downstream
side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail,
etc.). , where exchange happens between firms and its customers or distributors. According to
Spekman et al. (2002), process efficiency and improved performance requires a learning
environment among supply chain members. Specifically, pre-conditions for learning such as
integrative mechanisms and shared culture, learning enablers and learning structure and support
must be present so that positive impact on performance can be derived.
Fahey et al. (2001) identified key knowledge issues of know-what, know-how and know-why related
to SCM. For example: what changes are needed within the supply chain to lower costs and increase
responsiveness? (know-what); how can one use supply chain transparency (1) The quality of being
able to see through a material. The terms transparency and translucency are often used
synonymously; however, transparent would technically mean "seeing through clear glass," while
translucent would mean "seeing through frosted glass." See alpha blending. Â to make informed
operational decisions? (know-how); why is it necessary to regularly re-evaluate SCM processes?
(know-why). Bessant et al. (2003) acknowledged the different components of SCL and explained that
the potential for such learning can range from simple incremental additions (such as new
regulations) to a current knowledge set (such as a new and complex approach which involves
experiments and adaptation). A recent study by Sambasivan et al. (2009) added the component of
environmental knowledge in examining the relationships between SCL, SCM process knowledge and
organizational performance. They found that three types of environmental knowledge (demand
predictability, product churning Product churning is the practice of selling more product than is
beneficial to the consumer. An example is a stock broker who regularly buys and sells securities in
your portfolio. You may or may not gain, but the broker certainly piles up commissions. Â and
process change) moderated the relationship between applied supply chain process knowledge and
organizational performance. Regardless of how researchers define and view KM and learning within
a supply chain, this business strategy supports collaboration and decision-making which, in turn,
builds firms' competitiveness.
3. Model development and hypotheses formulation
An integrated model was used to test the relationships among TQM, KM and SCL (see Fig. 1).
The causal causal /cau·sal/ (kaw´z'l) pertaining to, involving, or indicating a cause.
causal
relating to or emanating from cause.  relationships, depicted de·pict Â
tr.v. de·pict·ed, de·pict·ing, de·picts
1. To represent in a picture or sculpture.
2. To represent in words; describe. See Synonyms at represent. Â by arrows, were investigated by
LInear Structural RElations software (LISREL LISREL Linear Structural Relations ) through SEM.
The theoretical bases of the relationships among the constructs are discussed hereafter In the
future.
The term hereafter is always used to indicate a future time--to the exclusion of both the past and
present--in legal documents, statutes, and other similar papers. .
[FIGURE 1 OMITTED]
3.1. Relationships between total quality management, knowledge management and supply chain
learning
TQM embodies the basic principles of quality assurance, total quality control and firm-wide quality
control. It is a set of management practices that is applied throughout organizations aiming to
ensure customer satisfaction are met (Talib et al. 2011). Introducing and implementing TQM
practices requires a long term commitment and through continuous improvement, it enables firms to
achieve conformance con·for·mance Â
n.
Conformity.
Noun 1. conformance - correspondence in form or appearance
conformity
agreement, correspondence - compatibility of observations; "there was no agreement between
theory and  to product specification and reduction of variances. TQM is found to be positively
associated with competitiveness in terms of improved productivity and cost reduction (Sohal,
Morrison 1995). Many researchers have also noted the importance of quality in long-term
sustainability and future competitiveness (Talib et al. 2011; Phusavat, Kanchan 2008).
The purpose of TQM and KM practices focuses on work-processes improvement on a firm so that
high customer satisfaction can be derived. TQM emphasizes on quality improvement in all functional
areas and at all levels in a firm. Whereas KM practices play an important role to enable embed
em·bed  also im·bed
v. em·bed·ded, em·bed·ding, em·beds
v.tr.
1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale.
 learning processes (before, during and after execution of plans) into the way management plan,
execute and evaluate performance for continuous improvement (Lyons et al. 2008). Zetie (2002)
identified the close relationship between TQM and KM through the following:
(a) Deming's emphasis throughout many of his later writings on the concept of "profound
knowledge" as a cornerstone cornerstone
Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building
to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs,
or other documents reflecting current customs, with a view to  of quality; and,
(b) the realization that an organization's quality manual is the depository The place where a deposit
is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place
where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box.
 of its process knowledge (p. 318).
The Deming Wheel, or Plan-Do-Check-Act (PDCA) cycle is a four-stage process for continuous quality
improvement that complements Deming's overall philosophy for achieving improvement. Each stage
of the PDCA cycle relies heavily on documentation to reduce process variation. Decreasing error
rates (control) is found to be less important as compared to experimentation (learning) in highly
uncertain contexts (Mellat-Parast, Digman 2008). According to Ju et al. (2006), integrating quality
management and KM can be valuable to the organizations since it increases implementation options,
particularly for those effecting organizational changes. More importantly, TQM focuses on
improvement in learning capability under highly uncertain environments (Mellat-Parast, Digman
2008; Sitkin et al. 1994). Sitkin et al. (1994) introduced the concept of total quality learning (TQL
TQL Total Quality Leadership
TQL Total Quality Logistics, Inc (Milford, OH)
TQL Tree Query Language ) which stresses improvement in learning capability. Such learning
capability "includes effectively identifying new skills and resources to pursue, the ability to explore
these new arenas, the capacity to learn from that exploration, and the resilience resilience (r
·zil?·yens),
n  to withstand the inevitable failures associated with such exploration" (p. 546). Recognizing the
relationship between TQM and KM is crucial as it helps to expand a broader use of explanatory
ex·plan·a·to·ry Â
adj.
Serving or intended to explain: an explanatory paragraph.
ex·plan  models developed in a specific context by Zetie (2002) and to confirm arguments by
Sitkin et al. (1994). Therefore, we posit the following hypothesis:
H1: TQM practices will have a significant positive impact on KM practices.
Vanichchinchai and Igel (2009) noted that today's customers demand better product quality, faster
delivery and cheaper costs. By maintaining and sustaining customer-driven culture, that is to offer
the right product in the right place at the right time and at the right prices enable firms to achieve
customer satisfaction and retention (Fisher et al. 2000). Spekman et al. (2002) argued that with an
effective integrated supply chain, partnering firms are able to enjoy reduction of cost, process
improvement and new product development through enhanced innovation capabilities. Development
of capabilities and skills are thus required to compete in the fast changing business world (Chawla,
Joshi 2010). Quality improvement significant reduces the amount of rework re·work Â
tr.v. re·worked, re·work·ing, re·works
1. To work over again; revise.
2. To subject to a repeated or new process.
n. Â or inefficiency. Lin et al. (2005) added that firm's effective management of technology and
quality lead to better market position and increased competitiveness.
Prior studies by Manning, Baines and Chadd (2006) and Schroder and McEachern (2002)
acknowledged the potential of quality assurance models in supporting supply chain integration and
integrity of product specification. The influence of TQM practices on organizational learning can be
taken to a further step by expanding it to the entire supply chain. This is because there is a
paradigm shift A dramatic change in methodology or practice. It often refers to a major change in
thinking and planning, which ultimately changes the way projects are implemented. For example,
accessing applications and data from the Web instead of from local servers is a paradigm shift. See
paradigm. Â focuses on managing supply chain networks and joint development of quality products
(Levy 1998; Kuei, Madu 2001; Lin et al. 2005).
Using Australian-based firms, Sohal and Morrison (1995) found that TQM is part of becoming a
learning organization. They further suggested that firms are required to be well-versed at (1)
systematic problem solving problem solving
Process involved in finding a solution to a problem. Many animals routinely solve problems of
locomotion, food finding, and shelter through trial and error. ; (2) experimentation with new
approaches; (3) learning from its own experiences; (4) learning from experiences and best practice
of others; and (5) transferring knowledge throughout the organization, in order to become a learning
organization. Activities of learning, re-learning and un-learning enable collaborating firms in the
supply chain to evaluate and monitor performance so that any improvement plans can be proposed
to enhance mutual benefits (Loke et al. 2011). Therefore, we posit the following hypothesis:
H2: TQM practices will have a significant positive impact on supply chain learning.
3.2. Relationship between knowledge management and supply chain learning
The proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or
multiplication of similar forms, especially of cells.prolif´erativeprolif´erous
pro·lif·er·a·tion
n. Â of supply chain partnerships is largely due to its benefits from cost reduction to synergies
creation (Loke et al. 2009). While witnessing the increase in numbers in numbered parts; as, a book
published in numbers.
See also: Number
 of collaborative ventures such as strategic alliances, joint ventures, marketing agreements,
outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform
systems analysis, programming and datacenter operations. Contrast with insourcing. See
netsourcing, ASP, SSP and facilities management. Â relationships and research consortia, Nielsen
(2005) highlighted that collaboration today focusing on intangible assets such as knowledge rather
than mere management of physical goods. Chen et al. (2009) found that collaboration enhances
dynamic learning in creating dynamic competitive capabilities. Chen et al. (2009) further argued
that these dynamic competitive capabilities can lead to creativity, evolution and recombination
recombination, process of "shuffling" of genes by which new combinations can be generated. In
recombination through sexual reproduction, the offspring's complete set of genes differs from that of
either parent, being rather a combination of genes from both parents. Â of resources. Firms are
encouraged to pay close attention on key strategic issue such as how to leverage a partner'
capabilities beyond tangible assets and explicit knowledge Explicit knowledge is knowledge that has
been or can be articulated, codified, and stored in certain media. It can be readily transmitted to
others. The most common forms of explicit knowledge are manuals, documents and procedures.
Knowledge also can be audio-visual. Â (Spekman et al. 2002) as some of these skills and assets are
tacit and not easily codified cod·i·fy Â
tr.v. cod·i·fied, cod·i·fy·ing, cod·i·fies
1. To reduce to a code: codify laws.
2. To arrange or systematize.
 but contribute to the firm's competitiveness (Hall 1999). Nielsen (2005) noted that learning and
KM application lead to networking and collaboration. His logic is straightforward: tacit knowledge
The concept of tacit knowing comes from scientist and philosopher Michael Polanyi. It is important
to understand that he wrote about a process (hence tacit knowing) and not a form of . Â is often hard
to codify codify to arrange and label a system of laws.  and transfer which therefore requires
working closely in supporting the development of new knowledge-related capabilities.
According to Loke et al. (2010), the learning activities can be directly related to KM since learning
serves to be the main building block for knowledge transfer. Such knowledge acquisition or creation
is closely associated with the addition of knowledge or correction of existing knowledge (Shin
shin (shin) the prominent anterior edge of the tibia or the leg.
saber shin marked anterior convexity of the tibia, seen in congenital syphilis and in yaws.  et al.
2001). KM practices are key to partnering firms in the supply chain for coordination of daily
operational tasks, joint decision-making and problem-solving. These activities cause changes within
their knowledge repository (1) A database of information about applications software that includes
author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a
CASE or application development system in order to identify objects and business rules for reuse. .
Collectively, these changes would then become a crucial source for partnering firms to adapt in
serving their customers.
Sambasivan et al. (2009) reported that the effective application of knowledge play an important role
in supply chain learning. They explained that knowledge creation and transfer are useful for supply
chain members in developing new products and services, and in improving operational and process
efficiency. Spekman et al. (2002) argued that the principle of knowledge as a competitive advantage
can be so powerful that these benefits could be extended from an individual partnering firm to an
entire supply chain. Therefore, we posit the following hypothesis:
H3: Knowledge management will have a significant positive impact on supply chain learning.
4. Research methodology
4.1. Sampling procedures
In this study, we targeted managers from both manufacturing and services companies from the
Federation of Malaysian Manufacturers (FMM FMM Federation of Malaysian Manufacturers
FMM Fast Multipole Method
FMM Franciscan Missionaries of Mary (religious order)
FMM Fast Marching Method (computer graphics)
FMM Financial Management Manual ) Directory 2010 regardless whether the firms were certified
See certification. Â with the ISO 9000 quality system series. The level of analysis was the managers
who had adequate knowledge about their firms' practices related to quality management, learning
and knowledge management. Mail surveys were sent to a random sample of 1,200 managers. Based
on 1,200 questionnaires originally distributed, a total of 202 were returned with complete answers
yielding an overall response rate of 16.83%.
4.2. Research instrument
4.2.1. Independent variables: TQM practices
We adopted the six constructs of TQM included in an earlier study by Teh et al. (2008): leadership;
strategic planning; customer focus; process management; information analysis; and human resource
focus. Using a 5-point Likert scale Likert scale A subjective scoring system that allows a person
being surveyed to quantify likes and preferences on a 5-point scale, with 1 being the least important,
relevant, interesting, most ho-hum, or other, and 5 being most excellent, yeehah important, etc
 ranging from 1 = strongly disagree to 5 = strongly agree, each construct was measured by a total
of 5 statements. Sample statements are: "Top management strongly encourages employee
involvement in quality management and improvement activities" (Leadership); "Our company has a
comprehensive and structured planning process which regularly sets and reviews short-and long-
term goals" (Strategic Planning); "Quality-related customer complaints are treated with top priority"
(Customer Focus); "Employees are encouraged to develop new and innovative ways for better
performance" (Process Management); "Up-to-date data and information on company is always
readily available" (Information Analysis); "Employee satisfaction is formally and regularly measured"
(Human Resource Focus).
4.2.2. Independent variables: KM practices
Similar to a previous study conducted by Chawla and Joshi (2010), we used the Knowledge
Management Assessment Tool (KMAT) to examine KM practices of responding firms. The KMAT was
developed by the American Productivity & Quality Center (APQC APQC American Productivity &
Quality Center ) and Arthur Anderson Arthur Anderson may refer to:
Arthur Anderson (businessman) (1792-1868), Scottish businessman and co-founder of the Peninsular
and Oriental Steam Navigation Company (P&O)
Arthur J. O.
 in 1995 to help organizations self-assess where their strengths and opportunities lie in managing
knowledge. The KMAT tool measures 5 constructs of KM practices, namely knowledge management
process, leadership in knowledge management, knowledge management culture, knowledge
management technology and knowledge management measurement. Using a 5-point Likert scale
where 1 = no, 2 = poor, 3 = fair, 4 = good, 5 = excellent, variables were measured with a total of 24
statements. Sample statements are: "All members of the organization are involved in looking for
ideas in traditional and non-traditional places" (Knowledge Management Process); "Managing
organizational knowledge is central to the organization's strategy" (Leadership in Knowledge
Management); "The organization encourages and facilitates knowledge sharing" (Knowledge
Management Culture); "Technology creates an institutional memory that is accessible to the entire
enterprise" (Knowledge Management Technology); and, "The organization has invented ways to link
knowledge to financial results" (Knowledge Management Measurement).
4.2.3. Dependent variables: supply chain learning
SCL was measured with an adaptation of scales used by Spekman et al. (2002) and Jabar et al.
(2011). Selection of both scales comprise criteria to measure both absorptive capacity and learning
behavior of the responding firms. Five constructs were used to measure supply chain learning,
namely absorptive capacity; five aspects of pre-learning conditions; learning enablers; learning
support/systems; and two aspects of joint efforts. All constructs were measured using a 5-point
Likert scale ranging from 1 = strongly disagree to 5 = strongly agree, except for the integrative
mechanism variable, which was measured using a 5-point Likert scale ranging from 1 = very low to
5 = very high. Sample statements are: "Our company will select partners that are willing to transfer
their tacit or unwritten LAW, UNWRITTEN, or lex non scripta. All the laws which do not come under
the definition of written law; it is composed, principally, of the law of nature, the law of nations, the
common law, and customs. Â knowledge" (Absorptive Capacity); "Our company and the supply chain
partner have a shared continuous improvement philosophy" (Pre-Learning Conditions: Shared
Culture); "We are willing to devote extra effort to sustaining this relationship" (Pre-Learning
Conditions: Commitment); "Our supply chain partner is trustworthy" (Pre-Learning Conditions:
Trust); "Frequent communication occurs between our company and the supply chain partner" (Pre-
Learning Conditions: Communication); "The extent of use of IT integration with all
suppliers/customers" (Pre-Learning Conditions: Integrative Mechanisms); "Developing new insights
is important to this supply chain" (Learning Enablers); "The systems and procedures of this supply
chain support innovation transfer between supply chain partners" (Learning Support/ Systems); "We
establish a joint team to manage our relationship" (Joint Efforts: Joint Decision-Making); "We sense
that our partner has a willingness to help when problems arise" (Joint Efforts: Win-win Approach).
4.3. Data analysis
In this study, we analyzed an·a·lyze Â
tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es
1. To examine methodically by separating into parts and studying their interrelations.
2. Chemistry To make a chemical analysis of.
3. Â the collected data using the Statistical Package for Social Sciences (SPSS A statistical package
from SPSS, Inc., Chicago (www.spss.com) that runs on PCs, most mainframes and minis and is used
extensively in marketing research. It provides over 50 statistical processes, including regression
analysis, correlation and analysis of variance. Â for Windows). To assess the unidimensionality of
each factor, a Confirmatory Factor Analysis In statistics, confirmatory factor analysis (CFA) is a
special form of factor analysis. It is used to assess the the number of factors and the loadings of
variables. Â (CFA) was carried out (Anderson, Gerbing 1988) using LISREL. Goodness-of-fit index
(GFI GFI Ground Fault Interrupter
GFI Go For It
GFI Government-Furnished Information
GFI Growing Families International
GFI Goodness of Fit Indices
GFI Government Financial Institutions (Philippines)
GFI Gross Farm Income ) and root mean square error of approximation
approximation /ap·prox·i·ma·tion/ (ah-prok?si-ma´shun)
1. the act or process of bringing into proximity or apposition.
2. a numerical value of limited accuracy. Â (RMSEA) were used to determine the construct validity
construct validity,
n the degree to which an experimentally-determined definition matches the theoretical definition. .
While GFI values closer to 1.00 indicate better fit, lower values of RMSEA are required to
demonstrate the goodness-of-fit of the measurement model. The results revealed that the Goodness
of Fit Goodness of fit means how well a statistical model fits a set of observations. Measures of
goodness of fit typically summarize the discrepancy between observed values and the values
expected under the model in question. Such measures can be used in statistical hypothesis testing,
e. Â Indexes (GFI) for all these factors greater than 0.90 according to Bagozzi and Yi (1988), while
the values of RMSEA are less than 0.08 as suggested by Browne and Cudek (1993) and therefore,
implying that the unidimensionality (Sureshchandar et al. 2002; Al-Hawari, Ward 2006).
The convergent validity Convergent validity is the degree to which an operation is similar to
(converges on) other operations that it theoretically should also be similar to. For instance, to show
the convergent validity of a test of mathematics skills, the scores on the test can be correlated with
scores  was also tested by assessing the appropriate p values and the factor loadings. According to
Fornell and Larcker (1981), convergent validity was assessed for the measurement model based on
three conditions: (1) The normal rules of all indicator factor loadings (X) should be significant and
exceed 0.50 for acceptability; (2) The average variance extracted (AVE) of each factor should be at
least 0.5 or higher; and (3) the scale composite reliability should be greater than 0.60 as reported by
Bagozzi and Yi (1988). As shown in the results (Table 1), the [lambda]-values for all items were well
above 0.50 (Kline 1998); Composite Reliability (CR) of all latent Hidden; concealed; that which does
not appear upon the face of an item.
For example, a latent defect in the title to a parcel of real property is one that is not discoverable by
an inspection of the title made with ordinary care. Â factors were above the standard value of 0.7
(Molina et al. 2007), whereas the Average Variance Extracted (AVE) of each factor exceeded 0.5
(Molina et al. 2007: 691), representing good convergent validity, entailing that the measurement is
acceptable (Gorla et al. 2010). The results of the AVE and Composite reliability for constructs are
illustrated in Table 1.
Structural equation models and path analyses were estimated using the same version of LISREL.
4.3.1. Profiles of responding firms
As shown in Table 2, the majority of firms responding to the survey were manufacturers (n = 109),
with 21.8% final product manufacturers, followed by services firms (n = 93).
Only 12 (5.9%) and 3 (1.5%) have contracts with the suppliers and customers, respectively. With
regard to the quality assurance programs, 46 respondent In Equity practice, the party who answers
a bill or other proceeding in equity. The party against whom an appeal or motion, an application for
a court order, is instituted and who is required to answer in order to protect his or her interests.
 firms (22.8%) were ISO-certified.
In this study, we included both manufacturing and services firms because activities within the entire
supply chain involve service firms such as logistics provider and insurance company. As displayed in
Table 3, the independent t-tests results indicated no significant differences were found on the
variables between the responses from manufacturing and service companies illustrating that
combining data from both industries yielded no difference.
4.3.2. Correlation analysis: relationships between variables
The correlation matrix Noun 1. correlation matrix - a matrix giving the correlations between all pairs
of data sets
statistics - a branch of applied mathematics concerned with the collection and interpretation of
quantitative data and the use of probability theory to estimate population  presented in Table 4
shows Pearson's correlation coefficients between the independent and dependent variables. Since all
of the r-values were less than 0.90, we conclude that there was no evidence of multicollinearity (Hair
et al. 2006).
4.3.3. Structural model
Path coefficients were calculated using SEM to examine the relationships between TQM, KM and
SCL. In order to test the structural model, multiple fit indices were used: (1) Chi-Square ([chi
sqaure]) statistics to the degree of freedom (df); (2) the absolute fit index (GFI and RMSEA); (3) the
comparative fit index (CFI CFI
abbr.
cost, freight, and insurance ) and (4) the normed-fit index (NFI NFI Nasjonal Forskningsinformasjon
(Norwegian Research Database)
NFI National Fisheries Institute
NFI National Fatherhood Initiative
NFI National Forest Inventory (Australia)
NFI Nutrition Foundation of India ) to evaluate the goodness of fit of the measurement model. Hair
et al. (2006) argued that GFI, CFI and NFI values that above 0.90 are indication of a satisfactory
model of fit. As shown in Figure 2, the structural model analysis had a reasonably good fit for the
data collected [[chi sqaure] = 122.54, df = 101, GFI = 0.87, CFI = 1.00, NFI = 0.98, RMSEA =
0.046], albeit with slightly lower values of GFI. The ratios of chi-square to degree of freedom were
1.21 which is less than the conventionally accepted standard of 3.0 (Ju et al. 2006).
5. Summary of findings and conclusion
5.1. Summary of findings
Based on the conceptual framework For the concept in aesthetics and art criticism, see .
A conceptual framework is used in research to outline possible courses of action or to present a
preferred approach to a system analysis project. Â proposed for TQM, KM and SCL and on the
empirical validation An empirical validation of a hypothesis is required for it to gain acceptance in
the scientific community. Normally this validation is achieved by the scientific method of hypothesis
commitment, experimental design, peer review, adversarial review, reproduction of results, Â of the
model, the following findings may be useful for further investigation and applications in practice:
* The results of bivariate bi·var·i·ate Â
adj.
Mathematics Having two variables: bivariate binomial distribution.
Adj. 1. Â correlations between TQM, KM and SCL revealed that there was a relatively high
correlation exists between variables examined in this study. This suggests that the predictor
variables: total quality management practices and knowledge management practices are closely
related with the outcome variable, the supply chain learning.
* Scales with good measurement properties commonly exhibit high factor loadings. All of the sub-
scales for TQM, KM and SCL have high factor loadings ranging from 0.79 to 0.89; 0.81 to 0.87; and
0.81 to 0.88 respectively showing that these sub-scales are appropriate for measuring the three
constructs used in the study. Details of validity and reliability results are demonstrated in Table 1.
* All of the hypothesis 1, 2, and 3 were found to be significant. This shows that TQM practices have
significant positive relationships to knowledge management ([H.sub.1]), with a path coefficient Path
coefficients are linear regression weights expressing the causal linkage between statistical variables
in the structural equation modeling approach. External links and references
www2.chass.ncsu.edu/garson/pa765/path.
 of 0.92; p
[FIGURE 2 OMITTED]
5.2. Conclusions
Quality management applied in supply chain has evolved over times. The traditional company-
-centered quality effort has expanded to the entire supply chain systems and such paradigm shift
focuses more on supplier-customer relationships and co-making of quality products (Levy 1998;
Kuei, Madu 2001; Lin et al. 2005). Spekman et al. (2002) suggested that greater level of inter-firm
collaborations can be achieved through supply chain learning, particularly when partners learning
from their past mistakes. The purpose of this paper was to provide a theoretical framework that ties
interrelated in·ter·re·late Â
tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates
To place in or come into mutual relationship.
in  bodies of knowledge in examining the supply chain learning. Firms are constantly seeking for
new ways to gain a sustainable competitive edge. We demonstrated that, through the empirical
evidence, how these two important strategies: TQM and KM can be integrated to increase
knowledge creation and subsequently to increase performance and profitability. The five dimensions
of TQM used in this study were: leadership, strategic planning, customer focus, process
management, information analysis and human resource focus. We relied on the work tools developed
by the American Productivity & Quality Center (APQC) and Arthur Anderson in examining five areas
of knowledge management practices, namely KM process, KM leadership, KM culture, technology
and KM measurement.
In addition, we adopted a similar approach used by Spekman et al. (2002) in measuring supply chain
learning. Our study has contributed to a better understanding of supply chain learning and the type
of practices needed to facilitate greater learning activities between partnering firms. We found that
TQM practices promote higher level of KM practices. This is because the implementation of quality
planning, control and assurance requires regular reviews and continuous inputs to enable and
sustain excellence in performance. Proper documentations and supporting systems foster sharing of
information within the firm and between supply chain partnering firms. These can serve to be the
basis not only for measuring product yield and productivity, but also for improving overall quality
performance such as increased efficiency in tasks coordination.
In addition, the results of this study showed that firms that are committed to quality management
most likely to have higher level of learning because: (1) they are found to be more inclined to devote
resources in technology and information systems that support the learning activities; and (2) supply
chain partners are more prone to share since creation of new knowledge capabilities are believed to
enhance their competitiveness. In fact, partner participation in identifying and solving problems is
useful for improving quality and productivity. More importantly, significant cost reduction is
expected. These benefits are most likely to be spanned over the whole supply chain due to better
forecasting, lower rework and product returns, and increased customer satisfaction. Ghosh and
Skibniewski (2010) pointed out that the enterprise resource planning See ERP.
(application, business) Enterprise Resource Planning - (ERP) Any software system designed to
support and automate the business processes of medium and large businesses. Â (ERP (Enterprise
Resource Planning) An integrated information system that serves all departments within an
enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software
rather than proprietary software written by or for one customer. ) systems commonly require
changes in business processes to best practices determined by the ERP vendor's supported system
which may not match with the ERP adopter's business processes. Therefore, firms must be willing to
continue to learn and adapt in order to succeed within the context of environmental complexities.
Consistent with previous findings e.g. Saraph, Benson and Schroeder (1989); Das, Kumar, K. and
Kumar, U. (2011), leadership is found to be an important element for any quality improvement. An
effective implementation of TQM requires the managers to have sound communication and
interpersonal skills "Interpersonal skills" refers to mental and communicative algorithms applied
during social communications and interactions in order to reach certain effects or results. The term
"interpersonal skills" is used often in business contexts to refer to the measure of a person's ability
 so that the firm's vision and objectives are properly communicated to everyone in the organization.
The ability to encourage discussion, feedback and employee involvement ensures quality efforts can
be achieved.
Strategic planning helps firms to effectively allocate To reserve a resource such as memory or disk.
See memory allocation. Â resources for quality performance. This includes formulating programs or
operational plans and policies gearing towards the firm's vision, mission and objectives. Efficient
process management and information analysis enhance creative problem-solving and decision-
making. Such processes can be expanded to team learning behavior and thereby benefit all members
in the chain. Indeed, participation from management team and employees, as well as supply chain
partners is key for any adjustment, update and corrections in the firm's strategy. This is because the
goals of the firms are needed to be continuously re-evaluated and revised in today fast changing
world.
According to Armistead (1999), knowledge management can be valuable when it is applied in an
operational context since information collected will be utilized strategically for planning in future
include new designs for products and services. Similar to findings in study by Sambasivan et al.
(2009), we found that each component of KM practices is important from fostering closer
relationship between supply chain partners (both upstream and downstream) to the realization of
synergies arising from collaboration. Coordination of activities and tasks between partnering firms
requires communication and mutual adjustment including learning from each others. Our findings
have provided support for the argument that KM process, leadership, culture, technology and
measurement must all be in place to promote learning. Implementation of TQM and KM requires
long-term commitment to realize their benefits because the nature of these practices is complex and
is known as a company-wide initiative. Nevertheless, through learning, knowledge creation and
processes innovation, partnering firms within the supply chain are able to adapt better in a highly
dynamic and uncertain environment by focusing on quality movements.
5.3. Future research directions
An attempt has been made in this research to study TQM and KM in learning within a supply chain
network through empirical data collection and analysis. The following are some potential directions
for future research.
First, future studies can be conducted to explore the impact of SCL on performance measures.
Research questions should focus on whether higher levels of SCL will improve supply chain
performance through increased efficiency and cost reduction. Studies are also needed to determine
the extent to which SCL enhances a firm's capability to innovate in·no·vate Â
v. in·no·vat·ed, in·no·vat·ing, in·no·vates
v.tr.
To begin or introduce (something new) for or as if for the first time.
v.intr.
To begin or introduce something new. Â or engage in new product development. The extent to which
levels of SCL affect partner satisfaction with and commitment to alliance structures should also be
investigated.
Second, this study used a fairly wide range of both manufacturing and services firms in Malaysia.
With larger sample sizes in future study, it will be interesting to compare whether the same model
can be sustained when the category of industry is confined con·fine Â
v. con·fined, con·fin·ing, con·fines
v.tr.
1. To keep within bounds; restrict: Please confine your remarks to the issues at hand. See
Synonyms at limit. . Further, we suggest future researchers explore the use of qualitative, non-
survey techniques such as interviews and field observations.
doi: 10.3846/16111699.2011.620170
Acknowledgement
The authors would like to thank the Ministry of Higher Education Malaysia for financially supporting
this research under Project No: 600-RMI/SPP/FRGS 5/3/Fsp (48/2010).
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Siew-Phaik Loke (1), Alan G. Downe (2), Murali Sambasivan (3), Khalizani Khalid (4)
(1,4) Faculty of Business Management, Universiti Teknologi MARA Universiti Teknologi MARA
(UiTM) is a Malaysian public university. In 2007, it will host the Australasian Intervarsity Debating
Championships. History
UiTM is closely linked to the development of the independent Malaysian nation. Â (UiTM), Bota,
Malaysia (2) School of Business, Curtin University Sarawak, Miri, Malaysia (3) Graduate School of
Management, Universiti Putra Malaysia Universiti Putra Malaysia or UPM is a public university in
Malaysia. It was formerly known as Universiti Pertanian Malaysia (Malay: universiti, university;
pertanian, agriculture; Malaysia). , Serdang, Malaysia E-mails: (1) lokesp@gmail.com
(corresponding author); (2) adowne@pd.jaring.my; (3) murali@econ.upm.edu.my; (4)
lyzakhalid76@gmail.com
Received 07 June 2011; accepted 31 August 2011
Siew-Phaik LOKE is a Senior Lecturer senior lecturer
n. Chiefly British
A university teacher, especially one ranking next below a reader. Â in the Faculty of Business
Management, Universiti Teknologi MARA (UiTM) Perak, Malaysia. She received her Ph.D. and
Masters degree in management from the Graduate School of Management, Universiti Putra
Malaysia. Her research interests include strategic alliances, supply chain management, knowledge
management, services quality and service industry strategy.
Alan G. DOWNE is Associate Professor of Entrepreneurship & Small Business Management at Curtin
University Sarawak. He holds a Ph.D. from Multimedia University (Malaysia) and a Master's degree
from the University of Calgary (Canada). His research interests focus on service industry strategy
and operations, organisational learning in small business ventures and user acceptance of
technology.
Murali SAMBASIVAN is the Head of Thesis-based Programs at Graduate school of Management at
Universiti Putra Malaysia. His areas of interest are: Management Science, Operations Management,
Statistics and Supply Chain Management. He has published in many international journals in various
areas of management. Prof. Murali before becoming an academic worked in the industry for 10
years. He has a bachelors and a Masters degree in engineering from India and Ph.D. in Management
Science from University of Alabama, USA.
Khalizani KHALID is a lecturer in the Faculty of Business Management at Universiti Teknologi
MARA (UiTM) Perak, Malaysia. Her primary research interest is ethical decision Real life ethical
decisions are studied in sociology and political science and psychology using very different methods
than descriptive ethics in ethics (philosophy). Not ethics proper  making, business ethics business
ethics, the study and evaluation of decision making by businesses according to moral concepts and
judgments. Ethical questions range from practical, narrowly defined issues, such as a company's
obligation to be honest with its customers, to broader social  and human resource management.
Recently, she has explored issues in strategic management, organizational behaviour and ethics
ethics, in philosophy, the study and evaluation of human conduct in the light of moral principles.
Moral principles may be viewed either as the standard of conduct that individuals have constructed
for themselves or as the body of obligations and duties that a  in biofuel bi·o·fuel Â
n.
Fuel such as methane produced from renewable resources, especially plant biomass and treated
municipal and industrial wastes.
bi .
Table 1. Results of reliability and validity Test
(n = 202)
Variables Indicator Std. Total
and Items Loadings Items
Total Quality Management
Leadership LD1 0.82 5
(LD) LD2 0.87
LD3 0.82
LD4 0.77
LD5 0.80
Strategic SP1 0.73 5
Planning SP2 0.73
(SP) SP3 0.82
SP4 0.75
SP5 0.64
Customer CF1 0.79 5
Focus (CF) CF2 0.78
CF3 0.81
CF4 0.78
CF5 0.80
Process PM1 0.77 5
Management (PM) PM2 0.78
PM3 0.78
PM4 0.76
PM5 0.75
Information & IA1 0.88 5
analysis (IA) IA2 0.75
IA3 0.78
IA4 0.80
IA5 0.84
Human Resource HR1 0.77 5
(HR) HR2 0.76
HR3 0.86
HR4 0.85
HR5 0.72
Knowledge management
Knowledge KMP1 0.88 5
Management KMP2 0.76
Process KMP3 0.90
(KMP) KMP4 0.75
KMP5 0.83
Leadership LKM1 0.76 4
in KM LKM2 0.80
(LKM) LKM3 0.80
LKM4 0.75
KM culture KMC1 0.78 5
(KMC) KMC2 0.90
KMC3 0.87
KMC4 0.83
KMC5 0.81
KM Technology KMT1 0.84 5
(KMT) KMT2 0.80
KMT3 0.78
KMT4 0.82
KMT5 0.88
KM Measurement KMM1 0.79 4
(KMM) KMM2 0.79
KMM3 0.77
KMM4 0.80
Supply Chain Learning
Absorptive AC1 0.81 4
Capacity (AC) AC2 0.83
AC3 0.78
AC4 0.80
Pre-Learning Conditions
Shared SC1 0.69 4
Culture SC2 0.77
(SC) SC3 0.87
SC4 0.76
Commitment (C) C1 0.89 3
C2 0.84
C3 0.70
Trust (T) T1 0.80 3
T2 0.80
T3 0.75
Communication CO1 0.93 4
(CO) CO2 0.89
CO3 0.90
Integrative IM1 0.78 5
Mechanism IM2 0.88
(IM) IM3 0.83
IM4 0.76
IM5 0.65
Learning LE1 0.78 6
Enablers LE2 0.80
(LE) LE3 0.89
LE4 0.75
LE5 0.78
LE6 0.81
Learning LS1 0.88 5
Structures/ LS2 0.82
System/ LS3 0.74
Process (LS) LS4 0.86
LS5 0.78
Joint Efforts
Joint JDM1 0.87 4
Decision JDM2 0.73
Making JDM3 0.84
(JDM) JDM4 0.89
Win-Win WWA1 0.80 4
Approach WWA2 0.67
(WWA) WWA3 0.73
WWA4 0.82
Variables Indicator Reliability Test AVE **
and Items
Chrobach Composite
Alpha Reliability *
Total Quality Management
Leadership LD1 0.908 0.9091 0.6964
(LD) LD2
LD3
LD4
LD5
Strategic SP1 0.852 0.8486 0.5422
Planning SP2
(SP) SP3
SP4
SP5
Customer CF1 0.892 0.8938 0.6274
Focus (CF) CF2
CF3
CF4
CF5
Process PM1 0.881 0.8779 0.5897
Management (PM) PM2
PM3
PM4
PM5
Information & IA1 0.920 0.9056 0.6582
analysis (IA) IA2
IA3
IA4
IA5
Human Resource HR1 0.885 0.8945 0.6302
(HR) HR2
HR3
HR4
HR5
Knowledge management
Knowledge KMP1 0.890 0.9142 0.6827
Management KMP2
Process KMP3
(KMP) KMP4
KMP5
Leadership LKM1 0.904 0.8596 0.6050
in KM LKM2
(LKM) LKM3
LKM4
KM culture KMC1 0.907 0.9223 0.7041
(KMC) KMC2
KMC3
KMC4
KMC5
KM Technology KMT1 0.918 0.9139 0.6802
(KMT) KMT2
KMT3
KMT4
KMT5
KM Measurement KMM1 0.901 0.8672 0.6203
(KMM) KMM2
KMM3
KMM4
Supply Chain Learning
Absorptive AC1 0.889 0.8805 0.6484
Capacity (AC) AC2
AC3
AC4
Pre-Learning Conditions
Shared SC1 0.913 0.8567 0.6008
Culture SC2
(SC) SC3
SC4
Commitment (C) C1 0.907 0.8537 0.6142
C2
C3
Trust (T) T1 0.844 0.8267 0.6625
T2
T3
Communication CO1 0.910 0.9328 0.8223
(CO) CO2
CO3
Integrative IM1 0.938 0.8875 0.6019
Mechanism IM2
(IM) IM3
IM4
IM5
Learning LE1 0.933 0.9156 0.6445
Enablers LE2
(LE) LE3
LE4
LE5
LE6
Learning LS1 0.917 0.9200 0.6685
Structures/ LS2
System/ LS3
Process (LS) LS4
LS5
Joint Efforts
Joint JDM1 0.907 0.9014 0.6968
Decision JDM2
Making JDM3
(JDM) JDM4
Win-Win WWA1 0.884 0.8424 0.5735
Approach WWA2
(WWA) WWA3
WWA4
Variables Indicator Validity Test
and Items
GFI RMSEA
Total Quality Management
Leadership LD1 0.98 0.078
(LD) LD2
LD3
LD4
LD5
Strategic SP1 0.99 0.041
Planning SP2
(SP) SP3
SP4
SP5
Customer CF1 0.98 0.080
Focus (CF) CF2
CF3
CF4
CF5
Process PM1 0.98 0.052
Management (PM) PM2
PM3
PM4
PM5
Information & IA1 0.99 0.045
analysis (IA) IA2
IA3
IA4
IA5
Human Resource HR1 0.98 0.067
(HR) HR2
HR3
HR4
HR5
Knowledge management
Knowledge KMP1 0.98 0.051
Management KMP2
Process KMP3
(KMP) KMP4
KMP5
Leadership LKM1 1.00 0.000
in KM LKM2
(LKM) LKM3
LKM4
KM culture KMC1 0.98 0.043
(KMC) KMC2
KMC3
KMC4
KMC5
KM Technology KMT1 0.99 0.022
(KMT) KMT2
KMT3
KMT4
KMT5
KM Measurement KMM1 0.98 0.068
(KMM) KMM2
KMM3
KMM4
Supply Chain Learning
Absorptive AC1 0.99 0.047
Capacity (AC) AC2
AC3
AC4
Pre-Learning Conditions
Shared SC1 0.99 0.055
Culture SC2
(SC) SC3
SC4
Commitment (C) C1 1.00 0.000
C2
C3
Trust (T) T1 1.00 0.000
T2
T3
Communication CO1 0.99 0.021
(CO) CO2
CO3
Integrative IM1 0.99 0.006
Mechanism IM2
(IM) IM3
IM4
IM5
Learning LE1 0.98 0.014
Enablers LE2
(LE) LE3
LE4
LE5
LE6
Learning LS1 0.99 0.034
Structures/ LS2
System/ LS3
Process (LS) LS4
LS5
Joint Efforts
Joint JDM1 0.98 0.047
Decision JDM2
Making JDM3
(JDM) JDM4
Win-Win WWA1 0.98 0.056
Approach WWA2
(WWA) WWA3
WWA4
Notes: * Composite Reliability (CR) = [([summation][lambda]
[??]).sup.2]/[[([summation][lambda][??]).sup.2] +
[summation][delta][??])], ([lambda][??] = standardized
factor loadings, i = observed variables, [delta][??] =
error variance); ** AVE = [summation][lambda][[??].sup.2]/n
(i = 1 ..n, [lambda] = standardized factor loadings,
i = observed variables)
Table 2. Profile of the responding firms
Profile Number of Category
Respondents
Organizational 202 Manufacturing
Category Service
Business 201 Miner/Raw Material Extrator
Function Raw Material Manufacturer
Component Manufacturer
Final Product Manufacturer
Wholesaler
Retailer
Services
Others
Contract 113 Formal Contract with suppliers
Arrangements Formal Contract with customers
No Contract Arrangement
ISO 202 Yes
Certification No
Other quality assurance program
Table 3. Independent T-Tests statistics for estimating difference
in responses between manufacturing and service companies
Variables Category N Mean Std.
Deviation
TQM Practices
Leadership Manufacturing 109 3.875 0.707
Service 93 3.974 0.695
Strategic Manufacturing 109 3.936 0.624
Planning Service 93 3.963 0.633
Customer Focus Manufacturing 109 3.918 0.781
Service 93 3.772 0.725
Process Manufacturing 109 3.797 0.659
Management Service 93 3.912 0.617
Information Manufacturing 109 3.845 0.809
Analysis Service 93 3.887 0.740
Human Resource Manufacturing 109 3.822 0.727
Focus Service 93 3.948 0.674
KM Practices
KM Process Manufacturing 109 3.722 0.619
Service 93 3.742 0.662
Leadership Manufacturing 109 3.872 0.675
in KM Service 93 3.871 0.760
KM Culture Manufacturing 109 3.882 0.706
Service 93 3.879 0.704
KM Technology Manufacturing 109 3.912 0.775
Service 93 3.778 0.706
KM Measurement Manufacturing 109 3.844 0.764
Service 93 3.847 0.732
Supply Chain Learning
Absorptive Manufacturing 109 3.832 0.687
Capacity Service 93 3.769 0.672
Pre-learning Manufacturing 109 3.835 0.677
Conditions Service 93 3.855 0.622
Learning Enablers Manufacturing 109 3.774 0.693
Service 93 3.743 0.784
Learning Support/ Manufacturing 109 3.851 0.726
System Service 93 3.757 0.761
Joint Efforts Manufacturing 109 3.875 0.706
Service 93 3.841 0.699
Variables Std. Error Significance
Mean
TQM Practices
Leadership 0.067 n.s.
0.663
Strategic 0.060 n.s.
Planning 0.066
Customer Focus 0.075 n.s.
0.075
Process 0.063 n.s.
Management 0.064
Information 0.077 n.s.
Analysis 0.077
Human Resource 0.070 n.s.
Focus 0.069
KM Practices
KM Process 0.060 n.s.
0.069
Leadership 0.065 n.s.
in KM 0.079
KM Culture 0.068 n.s.
0.073
KM Technology 0.074 n.s.
0.073
KM Measurement 0.072 n.s.
0.076
Supply Chain Learning
Absorptive 0.066 n.s.
Capacity 0.065
Pre-learning 0.065 n.s.
Conditions 0.065
Learning Enablers 0.066 n.s.
0.081
Learning Support/ 0.070 n.s.
System 0.079
Joint Efforts 0.068 n.s.
0.073
Note: n.s. non significant
Table 4. Bivariate correlations for dimensions of the studied
variables
1 2 3 4
TQM Practices
1 Leadership 1
2 Strategic Planning .764 ** 1
3 Customer Focus .695 ** 595 ** 1
4 Process Management 779 ** .756 ** .680 ** 1
5 Information Analysis .767 ** .638 ** .746 ** 791 **
6 Human Resource Focus .792 ** .713 ** .683 ** .746 **
KM Practices
7 KM Process .693 ** .674 ** .625 ** .711 **
8 Leadership in KM .721 ** .672 ** .650 ** .704 **
9 KM Culture .736 ** .699 ** .553 * .758 **
10 KM Technology .684 * .613 ** .678 ** .668 **
11 KM Measurement .694 ** .654 ** .639 ** .659 **
Supply Chain Learning
11 Absorptive Capacity .626 ** .567 ** .596 ** .623 **
12 Pre-learning Conditions .775 ** .687 ** .684 ** .733 **
13 Learning Enablers .722 ** .651 ** .647 ** .712 **
14 Learning Support/System .708 ** .608 ** .659 ** .648 **
15 Joint Efforts .674 ** .617 ** .638 ** .650 **
5 6 7 8
TQM Practices
1 Leadership
2 Strategic Planning
3 Customer Focus
4 Process Management
5 Information Analysis 1
6 Human Resource Focus 791 ** 1
KM Practices
7 KM Process .722 ** .785 ** 1
8 Leadership in KM .710 ** .743 ** .767 ** 1
9 KM Culture .672 ** 745 ** .784 ** 791 **
10 KM Technology .688 ** .780 ** .738 ** .775 **
11 KM Measurement .669 * .766 ** 745 ** .821 **
Supply Chain Learning
11 Absorptive Capacity .620 ** .606 ** .681 ** .700 **
12 Pre-learning Conditions .728 ** 719 ** .755 ** .756 **
13 Learning Enablers .684 ** .700 ** 741 ** .729 **
14 Learning Support/System .646 ** .654 ** .688 ** .670 **
15 Joint Efforts .668 ** .610 ** .675 ** .702 **
9 10 11 12
TQM Practices
1 Leadership
2 Strategic Planning
3 Customer Focus
4 Process Management
5 Information Analysis
6 Human Resource Focus
KM Practices
7 KM Process
8 Leadership in KM
9 KM Culture 1
10 KM Technology .723 ** 1
11 KM Measurement .748 ** .809 ** 1
Supply Chain Learning
11 Absorptive Capacity .655 ** .704 ** .676 ** 1
12 Pre-learning Conditions .767 ** .751 ** .763 ** .842 **
13 Learning Enablers .726 ** .679 ** .699 ** 741 **
14 Learning Support/System .693 ** .695 ** .676 ** .706 **
15 Joint Efforts .687 ** .713 ** .696 ** .832 **
13 14 15
TQM Practices
1 Leadership
2 Strategic Planning
3 Customer Focus
4 Process Management
5 Information Analysis
6 Human Resource Focus
KM Practices
7 KM Process
8 Leadership in KM
9 KM Culture
10 KM Technology
11 KM Measurement
Supply Chain Learning
11 Absorptive Capacity
12 Pre-learning Conditions 1
13 Learning Enablers .819 ** 1
14 Learning Support/System .836 ** 791 ** 1
15 Joint Efforts .861 ** .696 ** .707 ** 1
Note: ** Correlation is significant at 0.01 level (2-tailed)
COPYRIGHT 2012 Vilnius Gediminas Technical University
No portion of this article can be reproduced without the express written permission from the
copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.
http://www.thefreelibrary.com/A+structural+approach+to+integrating+total+quality+management
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A structural approach to integrating total quality management and knowledge management with supply chain learning.

  • 1. A structural approach to integrating total quality management and knowledge management with supply chain learning. 1. Introduction The success of supply chain management (SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. ) depends largely on the firm's efficiency in managing its processes. SCM is regarded as a powerful vehicle in cost reduction overall and performance improvement. It can also increase a firm's competitiveness if it is well-managed. The origin of SCM is perceived to derive from logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet  (Lee, Kincade 2003; Cox 1999; Tan TAN See tax anticipation note (TAN).  et al. 2002) and Romano and Vinelli (2001) referred it as integrated logistics management. SCM has evolved from a functional focus to cross-functional collaborations. This collaborative strategy has gained popularity among supply chain firms particularly due to the need for global market presence and increased customer demands. Effective collaboration are useful for capturing cost savings, enhancing customer satisfaction, facilitating synergies, adding value to all supply chain partners and ultimately remaining competitive in the industry. Slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but not actually used to store useful information. 2. (jargon) slack , Chambers and Johnston (2004) argued that supply chain activities consist of purchase and supply management, physical distribution management, logistics and material management. Overall, SCM includes the sourcing of raw materials, productions, new product development and commercialization, sales and marketing, product returns and recycling recycling, the process of recovering and reusing waste products--from household use, manufacturing, agriculture, and business--and thereby reducing their burden on the environment. , and managing supplier and customer relations (Lockamy, McCormack 2004; Mills et al. 2004; Talib et al. 2011). Networking and collaboration enhance firm's performance. Literature within SCM documented the need for cooperation due to the emergence of quality management philosophies. Therefore, this has resulted the study on the linkages between adoption of total quality management (TQM (Total Quality Management) An organizational undertaking to improve the quality of manufacturing and service. It focuses on obtaining continuous feedback for making improvements and refining existing processes over the long term. See ISO 9000. ) practices and organizational outcomes such as learning and knowledge transfer. Interestingly, Sohal and Morrison (1995) highlighted that TQM initiatives can only lead to organizational learning if such quality efforts are supported with a conducive con·du·cive  adj.
  • 2. Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable.  environment that can help firms to emerge as learning organizations and continuously to acquire new knowledge about customers, suppliers, processes and employees. A recent study by Vanichchinchai and Igel (2009) suggested that TQM and SCM share similar characteristics which both involve internal function participations and external partnerships. They added that while the main focus of TQM is on participation from all internal function, the SCM put emphasis on continuous collaboration with external partners. TQM and SCM are said to be the most important strategies for many different companies: from small-to-medium sized enterprises (SMEs) to giant manufacturers and servicing companies. TQM are often applied for process variance reduction In mathematics, more specifically in the theory of Monte Carlo methods, variance reduction is a procedure used to increase the precision of the estimates that can be obtained for a given number of iterations.  which is directly linked to supply chain performance measures such as cycle time, order fulfillment Order fulfillment (in BE also: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes Order fulfillment  and delivery dependability dependability - software reliability . Embracement of quality initiatives within SCM practices aims to achieve better product quality and development (Carmignani 2009). According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3.  Dick (2000), firms with a strong commitment to TQM have better business performance improvement than firms who only possessed QCert (e.g. ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI.  9000 certification). Kuei, Madu and Lin (2001) found that supply chain quality factors have positive impact on organizational performance. To a certain extent, SCM relies on TQM to effectively integrate suppliers, manufacturers, distributors and customers. Improvements in supplier quality management, customers' relations and supplier selection contribute to increased organizational performance (Kuei et al. 2001). The quality perspective of supply chain management claims that focuses on quality management practices is a critical success factor to the firm because better product would lead to new customer attraction and retention of existing customers (Kordupleski et al. 1993; Kuei et al. 2001). Since TQM, learning and knowledge management (KM) drawing from a common notion--organizational development (Zetie 2002), it is logical to examine if there is a linkage exists between these concepts, and if so, what would be the direction of the relationships. Learning involves the accumulation of knowledge and it helps firms to create new knowledge-related capabilities. Nielsen (2005) added that these capabilities can be in the form of tacit and fairly dynamic in nature. Efficient KM in supply chains enhance firm innovation and creativity to survive in today's rapidly changing business world (Maqsood et al. 2007; Sambasivan et al. 2009). Schein (2002) noted the difficulty in establishing a learning organization although knowledge is known to be a powerful source of firms' competitiveness. It is even more challenging to expand the learning behavior across different organizational boundaries. This is because firms are encouraged to learn and acquire skills, products, technology and knowledge through value creating activities (Spekman et al. 2002) meanwhile striving to keep their own proprietary information and core competencies. Jabar, Soosay
  • 3. and Santa (2011) argued that firms are more protective of their knowledge when their partners have high learning intent. However, high levels of trust between these partners foster continuous information sharing See data conferencing.  and exchange. While supply chains provide an environment where the partnering members can benefit from learning processes based on the transfer of skills and knowledge (Sambasivan et al. 2009), different levels of absorptive capacity In business administration, absorptive capacity is theory or model used to measure a firm's ability to value, assimilate, and apply new knowledge. It is studied on multiple levels (individual, group, firm, and national level).  among these members can complicate com·pli·cate  tr. & intr.v. com·pli·cat·ed, com·pli·cat·ing, com·pli·cates 1. To make or become complex or perplexing. 2. To twist or become twisted together. adj. 1.  the knowledge acquisition process. Simply, some firms learn better and faster than others. Prior researchers, such as Cohen cohen  or kohen (Hebrew: "priest") Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male.  and Levinthal (1990) and Lane, Salk and Lyles (2001) have described it as a firm's absorptive capacity. Cohen and Levinthal (1990) defined absorptive capacity as the level of knowledge overlap between partners, including the ability of a firm to value, assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism.  and commercially utilize new, external knowledge. In the present study, we included the concept of absorptive capacity as a component of learning within the supply chain. The aims of this study are twofold: first, we sought to develop an integrated TQM and KM model of supply chain learning (SCL (1) (Switch-to-Computer Link) Refers to applications that integrate the computer through the PBX. See switch-to-computer. (2) A file extension used for ColoRIX bitmapped graphics file format (640x400 256 colors). (language) SCL - 1. ). Second, we empirically tested the integrated model using data drawn from both manufacturing and services firms through structural model. The following section describes the literature review of the studied variables and details the construction of the model and formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation  of hypotheses. Finally, we present the data analysis, research findings and discussion, including directions for future research.
  • 4. 2. Literature review 2.1. Total quality management Firms today are facing on-going challenges from global competition and more sophisticated customers in terms of what they want and need (McAdam, Henderson 2004; Tan et al. 2002). Many firms adopt quality management programs in order to achieve high degree of differentiation and to reduce costs (Tari 2005). TQM refers to a management approach to planning and implementing continuous improvement throughout the entire firm for performance improvement (Claver-Cortes et al. 2008; Teh et al. 2008). According to Tari (2005), there are standardized models to guide firms in implementing and self-assess their quality practices, including those associated to the Malcolm Baldrige National Quality Award The Malcolm Baldrige National Quality Award is given by the United States National Institute of Standards and Technology. Through the actions of the National Productivity Advisory Committee chaired by Jack Grayson, it was established by the Malcolm Baldrige National Quality  (MBNQA MBNQA Malcolm Baldrige National Quality Award ) in the USA, the European Foundation for Quality Management (EFQM EFQM European Foundation for Quality Management ) in Europe and the Deming Application Prize in Japan. Numerous studies have been carried out to examine critical success factors for TQM implementation, tools and techniques for quality improvement, different categories of TQM practices and the evaluation of TQM implementation in various industry settings, including services sectors. A recent study by Talib et al. (2011) reported an intensive review of TQM, finding that top management commitment, customer focus, training and education, continuous improvement and innovation, supplier management, and employee involvement are major practices for TQM. In this study, we adopt an approach similar to those used in previous research (e.g. Choi, Eboch 1998; Samson, Terziovski 1999; Prajogo, Sohal 2003; Lee et al. 2003; Hsieh et al. 2007; Prajogo, Hong 2008; Teh et al. 2008) in describing TQM practices. The six constructs are leadership, strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. , customer focus, process management, information analysis and human resource focus. 2.2. Knowledge management KM emerged as a distinct management discipline when firms began shifting their focus from traditional factors of production to intangible assets such knowledge and goals focused on continuously meeting and exceeding customer's needs (Nielsen 2005; Jasimuddin 2008; Loke et al. 2010). Research in the areas of organizational learning and knowledge management are said to have developed in the 1960s (Cyert, March 1963). Zack, Mckeen and Singh (2009) noted that published work in the KM area consists conceptual frameworks, theoretical models and empirical research Noun 1. empirical research - an empirical search for knowledge inquiry, research, enquiry - a search for knowledge; "their pottery deserves more research than it has received"  that relies largely on qualititative case studies. KM is a core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990): It provides customer benefits
  • 5. It is hard for competitors to imitate It can be leveraged widely to many products and markets. Â for firms in the era of knowledge-based economies (Chong, C. W.; Chong, S. C. 2009; Grant, Baden-Fuller 2004; Johannessen, Olsen 2003). Knowledge workers are frequently to be key assets in a knowledge-based society (Drucker 1993). Although there the direct relationship between KM practices and financial performance has been elusive, Zack et al. (2009) established a positive direct relationship between KM practices and organizational performance which, in turn, directly influences financial performance. Ho (2008) reported that firms can create syneristic effects on performance through implementation of external tacit-internal-oriented and explicit-externa- -oriented KM strategies. KM is important for firms wishing to operate in a rapidly changing business environment as it enchances firms' abilities to strategically leverage knowledge to be their main source of competitive advantages. According to Lin (2011), "KM practices aim to see individual knowledge become group and organizational knowledge over time, which in turn improves the stock of knowledge available to the firm" (p. 136). The present study views KM practices in the same way. We hypothesized that the benefits of individual knowledge accumulation within a firm can be extended to improved performance of the supply chain members. 2.3. Supply chain learning Much of the existing literature on KM has paid little attention to learning specifically dedicated to the supply chain. Yet, it is becoming clear that firms operate within a value stream that involves other firms within a business network (Bessant et al. 2003). Bessant et al. (2003) argued that shared learning between firms offers potential as a mechanism to enhance firm's competitiveness. Learning facilitates international joint venture partners to gain access to others' know-how or resources (Akande et al. 2010). Work by Claycomb, Droge, and Germain (2001) and Spekman et al. (2002) pioneered the conceptual development of supply chain learning (SCL). Claycomb et al. (2001) classified knowledge applied to facilitated exchange within supply chains to: (1) upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger , where exchange happens between the firm and its suppliers; (2) within the firm itself where exchange happens to enhance its operation; and (3) downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). , where exchange happens between firms and its customers or distributors. According to Spekman et al. (2002), process efficiency and improved performance requires a learning environment among supply chain members. Specifically, pre-conditions for learning such as integrative mechanisms and shared culture, learning enablers and learning structure and support must be present so that positive impact on performance can be derived. Fahey et al. (2001) identified key knowledge issues of know-what, know-how and know-why related to SCM. For example: what changes are needed within the supply chain to lower costs and increase responsiveness? (know-what); how can one use supply chain transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used
  • 6. synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending.  to make informed operational decisions? (know-how); why is it necessary to regularly re-evaluate SCM processes? (know-why). Bessant et al. (2003) acknowledged the different components of SCL and explained that the potential for such learning can range from simple incremental additions (such as new regulations) to a current knowledge set (such as a new and complex approach which involves experiments and adaptation). A recent study by Sambasivan et al. (2009) added the component of environmental knowledge in examining the relationships between SCL, SCM process knowledge and organizational performance. They found that three types of environmental knowledge (demand predictability, product churning Product churning is the practice of selling more product than is beneficial to the consumer. An example is a stock broker who regularly buys and sells securities in your portfolio. You may or may not gain, but the broker certainly piles up commissions.  and process change) moderated the relationship between applied supply chain process knowledge and organizational performance. Regardless of how researchers define and view KM and learning within a supply chain, this business strategy supports collaboration and decision-making which, in turn, builds firms' competitiveness. 3. Model development and hypotheses formulation An integrated model was used to test the relationships among TQM, KM and SCL (see Fig. 1). The causal causal /cau·sal/ (kaw´z'l) pertaining to, involving, or indicating a cause. causal relating to or emanating from cause.  relationships, depicted de·pict  tr.v. de·pict·ed, de·pict·ing, de·picts 1. To represent in a picture or sculpture. 2. To represent in words; describe. See Synonyms at represent.  by arrows, were investigated by LInear Structural RElations software (LISREL LISREL Linear Structural Relations ) through SEM. The theoretical bases of the relationships among the constructs are discussed hereafter In the future. The term hereafter is always used to indicate a future time--to the exclusion of both the past and present--in legal documents, statutes, and other similar papers. . [FIGURE 1 OMITTED] 3.1. Relationships between total quality management, knowledge management and supply chain learning TQM embodies the basic principles of quality assurance, total quality control and firm-wide quality control. It is a set of management practices that is applied throughout organizations aiming to ensure customer satisfaction are met (Talib et al. 2011). Introducing and implementing TQM practices requires a long term commitment and through continuous improvement, it enables firms to achieve conformance con·for·mance  n.
  • 7. Conformity. Noun 1. conformance - correspondence in form or appearance conformity agreement, correspondence - compatibility of observations; "there was no agreement between theory and  to product specification and reduction of variances. TQM is found to be positively associated with competitiveness in terms of improved productivity and cost reduction (Sohal, Morrison 1995). Many researchers have also noted the importance of quality in long-term sustainability and future competitiveness (Talib et al. 2011; Phusavat, Kanchan 2008). The purpose of TQM and KM practices focuses on work-processes improvement on a firm so that high customer satisfaction can be derived. TQM emphasizes on quality improvement in all functional areas and at all levels in a firm. Whereas KM practices play an important role to enable embed em·bed  also im·bed v. em·bed·ded, em·bed·ding, em·beds v.tr. 1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale.  learning processes (before, during and after execution of plans) into the way management plan, execute and evaluate performance for continuous improvement (Lyons et al. 2008). Zetie (2002) identified the close relationship between TQM and KM through the following: (a) Deming's emphasis throughout many of his later writings on the concept of "profound knowledge" as a cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to  of quality; and, (b) the realization that an organization's quality manual is the depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box.  of its process knowledge (p. 318). The Deming Wheel, or Plan-Do-Check-Act (PDCA) cycle is a four-stage process for continuous quality improvement that complements Deming's overall philosophy for achieving improvement. Each stage of the PDCA cycle relies heavily on documentation to reduce process variation. Decreasing error rates (control) is found to be less important as compared to experimentation (learning) in highly uncertain contexts (Mellat-Parast, Digman 2008). According to Ju et al. (2006), integrating quality management and KM can be valuable to the organizations since it increases implementation options, particularly for those effecting organizational changes. More importantly, TQM focuses on improvement in learning capability under highly uncertain environments (Mellat-Parast, Digman 2008; Sitkin et al. 1994). Sitkin et al. (1994) introduced the concept of total quality learning (TQL TQL Total Quality Leadership TQL Total Quality Logistics, Inc (Milford, OH)
  • 8. TQL Tree Query Language ) which stresses improvement in learning capability. Such learning capability "includes effectively identifying new skills and resources to pursue, the ability to explore these new arenas, the capacity to learn from that exploration, and the resilience resilience (r ·zil?·yens), n  to withstand the inevitable failures associated with such exploration" (p. 546). Recognizing the relationship between TQM and KM is crucial as it helps to expand a broader use of explanatory ex·plan·a·to·ry  adj. Serving or intended to explain: an explanatory paragraph. ex·plan  models developed in a specific context by Zetie (2002) and to confirm arguments by Sitkin et al. (1994). Therefore, we posit the following hypothesis: H1: TQM practices will have a significant positive impact on KM practices. Vanichchinchai and Igel (2009) noted that today's customers demand better product quality, faster delivery and cheaper costs. By maintaining and sustaining customer-driven culture, that is to offer the right product in the right place at the right time and at the right prices enable firms to achieve customer satisfaction and retention (Fisher et al. 2000). Spekman et al. (2002) argued that with an effective integrated supply chain, partnering firms are able to enjoy reduction of cost, process improvement and new product development through enhanced innovation capabilities. Development of capabilities and skills are thus required to compete in the fast changing business world (Chawla, Joshi 2010). Quality improvement significant reduces the amount of rework re·work  tr.v. re·worked, re·work·ing, re·works 1. To work over again; revise. 2. To subject to a repeated or new process. n.  or inefficiency. Lin et al. (2005) added that firm's effective management of technology and quality lead to better market position and increased competitiveness. Prior studies by Manning, Baines and Chadd (2006) and Schroder and McEachern (2002) acknowledged the potential of quality assurance models in supporting supply chain integration and integrity of product specification. The influence of TQM practices on organizational learning can be taken to a further step by expanding it to the entire supply chain. This is because there is a paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm.  focuses on managing supply chain networks and joint development of quality products (Levy 1998; Kuei, Madu 2001; Lin et al. 2005). Using Australian-based firms, Sohal and Morrison (1995) found that TQM is part of becoming a learning organization. They further suggested that firms are required to be well-versed at (1) systematic problem solving problem solving Process involved in finding a solution to a problem. Many animals routinely solve problems of
  • 9. locomotion, food finding, and shelter through trial and error. ; (2) experimentation with new approaches; (3) learning from its own experiences; (4) learning from experiences and best practice of others; and (5) transferring knowledge throughout the organization, in order to become a learning organization. Activities of learning, re-learning and un-learning enable collaborating firms in the supply chain to evaluate and monitor performance so that any improvement plans can be proposed to enhance mutual benefits (Loke et al. 2011). Therefore, we posit the following hypothesis: H2: TQM practices will have a significant positive impact on supply chain learning. 3.2. Relationship between knowledge management and supply chain learning The proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n.  of supply chain partnerships is largely due to its benefits from cost reduction to synergies creation (Loke et al. 2009). While witnessing the increase in numbers in numbered parts; as, a book published in numbers. See also: Number  of collaborative ventures such as strategic alliances, joint ventures, marketing agreements, outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management.  relationships and research consortia, Nielsen (2005) highlighted that collaboration today focusing on intangible assets such as knowledge rather than mere management of physical goods. Chen et al. (2009) found that collaboration enhances dynamic learning in creating dynamic competitive capabilities. Chen et al. (2009) further argued that these dynamic competitive capabilities can lead to creativity, evolution and recombination recombination, process of "shuffling" of genes by which new combinations can be generated. In recombination through sexual reproduction, the offspring's complete set of genes differs from that of either parent, being rather a combination of genes from both parents.  of resources. Firms are encouraged to pay close attention on key strategic issue such as how to leverage a partner' capabilities beyond tangible assets and explicit knowledge Explicit knowledge is knowledge that has been or can be articulated, codified, and stored in certain media. It can be readily transmitted to others. The most common forms of explicit knowledge are manuals, documents and procedures. Knowledge also can be audio-visual.  (Spekman et al. 2002) as some of these skills and assets are tacit and not easily codified cod·i·fy  tr.v. cod·i·fied, cod·i·fy·ing, cod·i·fies 1. To reduce to a code: codify laws. 2. To arrange or systematize.  but contribute to the firm's competitiveness (Hall 1999). Nielsen (2005) noted that learning and KM application lead to networking and collaboration. His logic is straightforward: tacit knowledge The concept of tacit knowing comes from scientist and philosopher Michael Polanyi. It is important to understand that he wrote about a process (hence tacit knowing) and not a form of .  is often hard to codify codify to arrange and label a system of laws.  and transfer which therefore requires
  • 10. working closely in supporting the development of new knowledge-related capabilities. According to Loke et al. (2010), the learning activities can be directly related to KM since learning serves to be the main building block for knowledge transfer. Such knowledge acquisition or creation is closely associated with the addition of knowledge or correction of existing knowledge (Shin shin (shin) the prominent anterior edge of the tibia or the leg. saber shin marked anterior convexity of the tibia, seen in congenital syphilis and in yaws.  et al. 2001). KM practices are key to partnering firms in the supply chain for coordination of daily operational tasks, joint decision-making and problem-solving. These activities cause changes within their knowledge repository (1) A database of information about applications software that includes author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a CASE or application development system in order to identify objects and business rules for reuse. . Collectively, these changes would then become a crucial source for partnering firms to adapt in serving their customers. Sambasivan et al. (2009) reported that the effective application of knowledge play an important role in supply chain learning. They explained that knowledge creation and transfer are useful for supply chain members in developing new products and services, and in improving operational and process efficiency. Spekman et al. (2002) argued that the principle of knowledge as a competitive advantage can be so powerful that these benefits could be extended from an individual partnering firm to an entire supply chain. Therefore, we posit the following hypothesis: H3: Knowledge management will have a significant positive impact on supply chain learning. 4. Research methodology 4.1. Sampling procedures In this study, we targeted managers from both manufacturing and services companies from the Federation of Malaysian Manufacturers (FMM FMM Federation of Malaysian Manufacturers FMM Fast Multipole Method FMM Franciscan Missionaries of Mary (religious order) FMM Fast Marching Method (computer graphics) FMM Financial Management Manual ) Directory 2010 regardless whether the firms were certified See certification.  with the ISO 9000 quality system series. The level of analysis was the managers who had adequate knowledge about their firms' practices related to quality management, learning and knowledge management. Mail surveys were sent to a random sample of 1,200 managers. Based on 1,200 questionnaires originally distributed, a total of 202 were returned with complete answers yielding an overall response rate of 16.83%. 4.2. Research instrument 4.2.1. Independent variables: TQM practices We adopted the six constructs of TQM included in an earlier study by Teh et al. (2008): leadership; strategic planning; customer focus; process management; information analysis; and human resource
  • 11. focus. Using a 5-point Likert scale Likert scale A subjective scoring system that allows a person being surveyed to quantify likes and preferences on a 5-point scale, with 1 being the least important, relevant, interesting, most ho-hum, or other, and 5 being most excellent, yeehah important, etc  ranging from 1 = strongly disagree to 5 = strongly agree, each construct was measured by a total of 5 statements. Sample statements are: "Top management strongly encourages employee involvement in quality management and improvement activities" (Leadership); "Our company has a comprehensive and structured planning process which regularly sets and reviews short-and long- term goals" (Strategic Planning); "Quality-related customer complaints are treated with top priority" (Customer Focus); "Employees are encouraged to develop new and innovative ways for better performance" (Process Management); "Up-to-date data and information on company is always readily available" (Information Analysis); "Employee satisfaction is formally and regularly measured" (Human Resource Focus). 4.2.2. Independent variables: KM practices Similar to a previous study conducted by Chawla and Joshi (2010), we used the Knowledge Management Assessment Tool (KMAT) to examine KM practices of responding firms. The KMAT was developed by the American Productivity & Quality Center (APQC APQC American Productivity & Quality Center ) and Arthur Anderson Arthur Anderson may refer to: Arthur Anderson (businessman) (1792-1868), Scottish businessman and co-founder of the Peninsular and Oriental Steam Navigation Company (P&O) Arthur J. O.  in 1995 to help organizations self-assess where their strengths and opportunities lie in managing knowledge. The KMAT tool measures 5 constructs of KM practices, namely knowledge management process, leadership in knowledge management, knowledge management culture, knowledge management technology and knowledge management measurement. Using a 5-point Likert scale where 1 = no, 2 = poor, 3 = fair, 4 = good, 5 = excellent, variables were measured with a total of 24 statements. Sample statements are: "All members of the organization are involved in looking for ideas in traditional and non-traditional places" (Knowledge Management Process); "Managing organizational knowledge is central to the organization's strategy" (Leadership in Knowledge Management); "The organization encourages and facilitates knowledge sharing" (Knowledge Management Culture); "Technology creates an institutional memory that is accessible to the entire enterprise" (Knowledge Management Technology); and, "The organization has invented ways to link knowledge to financial results" (Knowledge Management Measurement). 4.2.3. Dependent variables: supply chain learning SCL was measured with an adaptation of scales used by Spekman et al. (2002) and Jabar et al. (2011). Selection of both scales comprise criteria to measure both absorptive capacity and learning behavior of the responding firms. Five constructs were used to measure supply chain learning, namely absorptive capacity; five aspects of pre-learning conditions; learning enablers; learning support/systems; and two aspects of joint efforts. All constructs were measured using a 5-point Likert scale ranging from 1 = strongly disagree to 5 = strongly agree, except for the integrative mechanism variable, which was measured using a 5-point Likert scale ranging from 1 = very low to 5 = very high. Sample statements are: "Our company will select partners that are willing to transfer their tacit or unwritten LAW, UNWRITTEN, or lex non scripta. All the laws which do not come under the definition of written law; it is composed, principally, of the law of nature, the law of nations, the common law, and customs.  knowledge" (Absorptive Capacity); "Our company and the supply chain
  • 12. partner have a shared continuous improvement philosophy" (Pre-Learning Conditions: Shared Culture); "We are willing to devote extra effort to sustaining this relationship" (Pre-Learning Conditions: Commitment); "Our supply chain partner is trustworthy" (Pre-Learning Conditions: Trust); "Frequent communication occurs between our company and the supply chain partner" (Pre- Learning Conditions: Communication); "The extent of use of IT integration with all suppliers/customers" (Pre-Learning Conditions: Integrative Mechanisms); "Developing new insights is important to this supply chain" (Learning Enablers); "The systems and procedures of this supply chain support innovation transfer between supply chain partners" (Learning Support/ Systems); "We establish a joint team to manage our relationship" (Joint Efforts: Joint Decision-Making); "We sense that our partner has a willingness to help when problems arise" (Joint Efforts: Win-win Approach). 4.3. Data analysis In this study, we analyzed an·a·lyze  tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3.  the collected data using the Statistical Package for Social Sciences (SPSS A statistical package from SPSS, Inc., Chicago (www.spss.com) that runs on PCs, most mainframes and minis and is used extensively in marketing research. It provides over 50 statistical processes, including regression analysis, correlation and analysis of variance.  for Windows). To assess the unidimensionality of each factor, a Confirmatory Factor Analysis In statistics, confirmatory factor analysis (CFA) is a special form of factor analysis. It is used to assess the the number of factors and the loadings of variables.  (CFA) was carried out (Anderson, Gerbing 1988) using LISREL. Goodness-of-fit index (GFI GFI Ground Fault Interrupter GFI Go For It GFI Government-Furnished Information GFI Growing Families International GFI Goodness of Fit Indices GFI Government Financial Institutions (Philippines) GFI Gross Farm Income ) and root mean square error of approximation approximation /ap·prox·i·ma·tion/ (ah-prok?si-ma´shun) 1. the act or process of bringing into proximity or apposition. 2. a numerical value of limited accuracy.  (RMSEA) were used to determine the construct validity construct validity, n the degree to which an experimentally-determined definition matches the theoretical definition. . While GFI values closer to 1.00 indicate better fit, lower values of RMSEA are required to demonstrate the goodness-of-fit of the measurement model. The results revealed that the Goodness
  • 13. of Fit Goodness of fit means how well a statistical model fits a set of observations. Measures of goodness of fit typically summarize the discrepancy between observed values and the values expected under the model in question. Such measures can be used in statistical hypothesis testing, e.  Indexes (GFI) for all these factors greater than 0.90 according to Bagozzi and Yi (1988), while the values of RMSEA are less than 0.08 as suggested by Browne and Cudek (1993) and therefore, implying that the unidimensionality (Sureshchandar et al. 2002; Al-Hawari, Ward 2006). The convergent validity Convergent validity is the degree to which an operation is similar to (converges on) other operations that it theoretically should also be similar to. For instance, to show the convergent validity of a test of mathematics skills, the scores on the test can be correlated with scores  was also tested by assessing the appropriate p values and the factor loadings. According to Fornell and Larcker (1981), convergent validity was assessed for the measurement model based on three conditions: (1) The normal rules of all indicator factor loadings (X) should be significant and exceed 0.50 for acceptability; (2) The average variance extracted (AVE) of each factor should be at least 0.5 or higher; and (3) the scale composite reliability should be greater than 0.60 as reported by Bagozzi and Yi (1988). As shown in the results (Table 1), the [lambda]-values for all items were well above 0.50 (Kline 1998); Composite Reliability (CR) of all latent Hidden; concealed; that which does not appear upon the face of an item. For example, a latent defect in the title to a parcel of real property is one that is not discoverable by an inspection of the title made with ordinary care.  factors were above the standard value of 0.7 (Molina et al. 2007), whereas the Average Variance Extracted (AVE) of each factor exceeded 0.5 (Molina et al. 2007: 691), representing good convergent validity, entailing that the measurement is acceptable (Gorla et al. 2010). The results of the AVE and Composite reliability for constructs are illustrated in Table 1. Structural equation models and path analyses were estimated using the same version of LISREL. 4.3.1. Profiles of responding firms As shown in Table 2, the majority of firms responding to the survey were manufacturers (n = 109), with 21.8% final product manufacturers, followed by services firms (n = 93). Only 12 (5.9%) and 3 (1.5%) have contracts with the suppliers and customers, respectively. With regard to the quality assurance programs, 46 respondent In Equity practice, the party who answers a bill or other proceeding in equity. The party against whom an appeal or motion, an application for a court order, is instituted and who is required to answer in order to protect his or her interests.  firms (22.8%) were ISO-certified. In this study, we included both manufacturing and services firms because activities within the entire supply chain involve service firms such as logistics provider and insurance company. As displayed in Table 3, the independent t-tests results indicated no significant differences were found on the variables between the responses from manufacturing and service companies illustrating that combining data from both industries yielded no difference. 4.3.2. Correlation analysis: relationships between variables The correlation matrix Noun 1. correlation matrix - a matrix giving the correlations between all pairs of data sets statistics - a branch of applied mathematics concerned with the collection and interpretation of
  • 14. quantitative data and the use of probability theory to estimate population  presented in Table 4 shows Pearson's correlation coefficients between the independent and dependent variables. Since all of the r-values were less than 0.90, we conclude that there was no evidence of multicollinearity (Hair et al. 2006). 4.3.3. Structural model Path coefficients were calculated using SEM to examine the relationships between TQM, KM and SCL. In order to test the structural model, multiple fit indices were used: (1) Chi-Square ([chi sqaure]) statistics to the degree of freedom (df); (2) the absolute fit index (GFI and RMSEA); (3) the comparative fit index (CFI CFI abbr. cost, freight, and insurance ) and (4) the normed-fit index (NFI NFI Nasjonal Forskningsinformasjon (Norwegian Research Database) NFI National Fisheries Institute NFI National Fatherhood Initiative NFI National Forest Inventory (Australia) NFI Nutrition Foundation of India ) to evaluate the goodness of fit of the measurement model. Hair et al. (2006) argued that GFI, CFI and NFI values that above 0.90 are indication of a satisfactory model of fit. As shown in Figure 2, the structural model analysis had a reasonably good fit for the data collected [[chi sqaure] = 122.54, df = 101, GFI = 0.87, CFI = 1.00, NFI = 0.98, RMSEA = 0.046], albeit with slightly lower values of GFI. The ratios of chi-square to degree of freedom were 1.21 which is less than the conventionally accepted standard of 3.0 (Ju et al. 2006). 5. Summary of findings and conclusion 5.1. Summary of findings Based on the conceptual framework For the concept in aesthetics and art criticism, see . A conceptual framework is used in research to outline possible courses of action or to present a preferred approach to a system analysis project.  proposed for TQM, KM and SCL and on the empirical validation An empirical validation of a hypothesis is required for it to gain acceptance in the scientific community. Normally this validation is achieved by the scientific method of hypothesis commitment, experimental design, peer review, adversarial review, reproduction of results,  of the model, the following findings may be useful for further investigation and applications in practice: * The results of bivariate bi·var·i·ate  adj. Mathematics Having two variables: bivariate binomial distribution. Adj. 1.  correlations between TQM, KM and SCL revealed that there was a relatively high correlation exists between variables examined in this study. This suggests that the predictor
  • 15. variables: total quality management practices and knowledge management practices are closely related with the outcome variable, the supply chain learning. * Scales with good measurement properties commonly exhibit high factor loadings. All of the sub- scales for TQM, KM and SCL have high factor loadings ranging from 0.79 to 0.89; 0.81 to 0.87; and 0.81 to 0.88 respectively showing that these sub-scales are appropriate for measuring the three constructs used in the study. Details of validity and reliability results are demonstrated in Table 1. * All of the hypothesis 1, 2, and 3 were found to be significant. This shows that TQM practices have significant positive relationships to knowledge management ([H.sub.1]), with a path coefficient Path coefficients are linear regression weights expressing the causal linkage between statistical variables in the structural equation modeling approach. External links and references www2.chass.ncsu.edu/garson/pa765/path.  of 0.92; p [FIGURE 2 OMITTED] 5.2. Conclusions Quality management applied in supply chain has evolved over times. The traditional company- -centered quality effort has expanded to the entire supply chain systems and such paradigm shift focuses more on supplier-customer relationships and co-making of quality products (Levy 1998; Kuei, Madu 2001; Lin et al. 2005). Spekman et al. (2002) suggested that greater level of inter-firm collaborations can be achieved through supply chain learning, particularly when partners learning from their past mistakes. The purpose of this paper was to provide a theoretical framework that ties interrelated in·ter·re·late  tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates To place in or come into mutual relationship. in  bodies of knowledge in examining the supply chain learning. Firms are constantly seeking for new ways to gain a sustainable competitive edge. We demonstrated that, through the empirical evidence, how these two important strategies: TQM and KM can be integrated to increase knowledge creation and subsequently to increase performance and profitability. The five dimensions of TQM used in this study were: leadership, strategic planning, customer focus, process management, information analysis and human resource focus. We relied on the work tools developed by the American Productivity & Quality Center (APQC) and Arthur Anderson in examining five areas of knowledge management practices, namely KM process, KM leadership, KM culture, technology and KM measurement. In addition, we adopted a similar approach used by Spekman et al. (2002) in measuring supply chain learning. Our study has contributed to a better understanding of supply chain learning and the type of practices needed to facilitate greater learning activities between partnering firms. We found that TQM practices promote higher level of KM practices. This is because the implementation of quality planning, control and assurance requires regular reviews and continuous inputs to enable and sustain excellence in performance. Proper documentations and supporting systems foster sharing of information within the firm and between supply chain partnering firms. These can serve to be the basis not only for measuring product yield and productivity, but also for improving overall quality
  • 16. performance such as increased efficiency in tasks coordination. In addition, the results of this study showed that firms that are committed to quality management most likely to have higher level of learning because: (1) they are found to be more inclined to devote resources in technology and information systems that support the learning activities; and (2) supply chain partners are more prone to share since creation of new knowledge capabilities are believed to enhance their competitiveness. In fact, partner participation in identifying and solving problems is useful for improving quality and productivity. More importantly, significant cost reduction is expected. These benefits are most likely to be spanned over the whole supply chain due to better forecasting, lower rework and product returns, and increased customer satisfaction. Ghosh and Skibniewski (2010) pointed out that the enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses.  (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) systems commonly require changes in business processes to best practices determined by the ERP vendor's supported system which may not match with the ERP adopter's business processes. Therefore, firms must be willing to continue to learn and adapt in order to succeed within the context of environmental complexities. Consistent with previous findings e.g. Saraph, Benson and Schroeder (1989); Das, Kumar, K. and Kumar, U. (2011), leadership is found to be an important element for any quality improvement. An effective implementation of TQM requires the managers to have sound communication and interpersonal skills "Interpersonal skills" refers to mental and communicative algorithms applied during social communications and interactions in order to reach certain effects or results. The term "interpersonal skills" is used often in business contexts to refer to the measure of a person's ability  so that the firm's vision and objectives are properly communicated to everyone in the organization. The ability to encourage discussion, feedback and employee involvement ensures quality efforts can be achieved. Strategic planning helps firms to effectively allocate To reserve a resource such as memory or disk. See memory allocation.  resources for quality performance. This includes formulating programs or operational plans and policies gearing towards the firm's vision, mission and objectives. Efficient process management and information analysis enhance creative problem-solving and decision- making. Such processes can be expanded to team learning behavior and thereby benefit all members in the chain. Indeed, participation from management team and employees, as well as supply chain partners is key for any adjustment, update and corrections in the firm's strategy. This is because the goals of the firms are needed to be continuously re-evaluated and revised in today fast changing world. According to Armistead (1999), knowledge management can be valuable when it is applied in an operational context since information collected will be utilized strategically for planning in future include new designs for products and services. Similar to findings in study by Sambasivan et al. (2009), we found that each component of KM practices is important from fostering closer relationship between supply chain partners (both upstream and downstream) to the realization of synergies arising from collaboration. Coordination of activities and tasks between partnering firms requires communication and mutual adjustment including learning from each others. Our findings have provided support for the argument that KM process, leadership, culture, technology and measurement must all be in place to promote learning. Implementation of TQM and KM requires long-term commitment to realize their benefits because the nature of these practices is complex and
  • 17. is known as a company-wide initiative. Nevertheless, through learning, knowledge creation and processes innovation, partnering firms within the supply chain are able to adapt better in a highly dynamic and uncertain environment by focusing on quality movements. 5.3. Future research directions An attempt has been made in this research to study TQM and KM in learning within a supply chain network through empirical data collection and analysis. The following are some potential directions for future research. First, future studies can be conducted to explore the impact of SCL on performance measures. Research questions should focus on whether higher levels of SCL will improve supply chain performance through increased efficiency and cost reduction. Studies are also needed to determine the extent to which SCL enhances a firm's capability to innovate in·no·vate  v. in·no·vat·ed, in·no·vat·ing, in·no·vates v.tr. To begin or introduce (something new) for or as if for the first time. v.intr. To begin or introduce something new.  or engage in new product development. The extent to which levels of SCL affect partner satisfaction with and commitment to alliance structures should also be investigated. Second, this study used a fairly wide range of both manufacturing and services firms in Malaysia. With larger sample sizes in future study, it will be interesting to compare whether the same model can be sustained when the category of industry is confined con·fine  v. con·fined, con·fin·ing, con·fines v.tr. 1. To keep within bounds; restrict: Please confine your remarks to the issues at hand. See Synonyms at limit. . Further, we suggest future researchers explore the use of qualitative, non- survey techniques such as interviews and field observations. doi: 10.3846/16111699.2011.620170 Acknowledgement The authors would like to thank the Ministry of Higher Education Malaysia for financially supporting this research under Project No: 600-RMI/SPP/FRGS 5/3/Fsp (48/2010). References Akande, W. A.; Adetoun, B. E.; Tserere, M. M.; Adewuyi, M. F.; Akande, E. T. 2010. Should we put locals in charge? Managing relationships within prospective us--South African joint ventures, Journal of Business Economics and Management 11(4): 550-575. http://dx.doi.org/10.3846/jbem.2010.27
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  • 25. Vanichachinchai, A.; Igel, B. 2009. Total quality management and supply chain management: similarities and difference, The TQM Magazine 21(3): 249-260. http://dx.doi.org/10.1108/17542730910953022 Zack, M.; McKeen, J.; Singh, S. 2009. Knowledge management and organizational performance: an exploratory analysis, Journal of Knowledge Management 13(6): 392-409. http://dx.doi.org/10.1108/13673270910997088 Zetie, S. 2002. The quality circle approach to knowledge management, Managerial Auditing Journal 17(6): 317-321. http://dx.doi.org/10.1108/02686900210434096 Siew-Phaik Loke (1), Alan G. Downe (2), Murali Sambasivan (3), Khalizani Khalid (4) (1,4) Faculty of Business Management, Universiti Teknologi MARA Universiti Teknologi MARA (UiTM) is a Malaysian public university. In 2007, it will host the Australasian Intervarsity Debating Championships. History UiTM is closely linked to the development of the independent Malaysian nation. Â (UiTM), Bota, Malaysia (2) School of Business, Curtin University Sarawak, Miri, Malaysia (3) Graduate School of Management, Universiti Putra Malaysia Universiti Putra Malaysia or UPM is a public university in Malaysia. It was formerly known as Universiti Pertanian Malaysia (Malay: universiti, university; pertanian, agriculture; Malaysia). , Serdang, Malaysia E-mails: (1) lokesp@gmail.com (corresponding author); (2) adowne@pd.jaring.my; (3) murali@econ.upm.edu.my; (4) lyzakhalid76@gmail.com Received 07 June 2011; accepted 31 August 2011 Siew-Phaik LOKE is a Senior Lecturer senior lecturer n. Chiefly British A university teacher, especially one ranking next below a reader. Â in the Faculty of Business Management, Universiti Teknologi MARA (UiTM) Perak, Malaysia. She received her Ph.D. and Masters degree in management from the Graduate School of Management, Universiti Putra Malaysia. Her research interests include strategic alliances, supply chain management, knowledge management, services quality and service industry strategy. Alan G. DOWNE is Associate Professor of Entrepreneurship & Small Business Management at Curtin University Sarawak. He holds a Ph.D. from Multimedia University (Malaysia) and a Master's degree from the University of Calgary (Canada). His research interests focus on service industry strategy and operations, organisational learning in small business ventures and user acceptance of technology. Murali SAMBASIVAN is the Head of Thesis-based Programs at Graduate school of Management at Universiti Putra Malaysia. His areas of interest are: Management Science, Operations Management, Statistics and Supply Chain Management. He has published in many international journals in various areas of management. Prof. Murali before becoming an academic worked in the industry for 10 years. He has a bachelors and a Masters degree in engineering from India and Ph.D. in Management Science from University of Alabama, USA. Khalizani KHALID is a lecturer in the Faculty of Business Management at Universiti Teknologi
  • 26. MARA (UiTM) Perak, Malaysia. Her primary research interest is ethical decision Real life ethical decisions are studied in sociology and political science and psychology using very different methods than descriptive ethics in ethics (philosophy). Not ethics proper  making, business ethics business ethics, the study and evaluation of decision making by businesses according to moral concepts and judgments. Ethical questions range from practical, narrowly defined issues, such as a company's obligation to be honest with its customers, to broader social  and human resource management. Recently, she has explored issues in strategic management, organizational behaviour and ethics ethics, in philosophy, the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a  in biofuel bi·o·fuel  n. Fuel such as methane produced from renewable resources, especially plant biomass and treated municipal and industrial wastes. bi . Table 1. Results of reliability and validity Test (n = 202) Variables Indicator Std. Total and Items Loadings Items Total Quality Management Leadership LD1 0.82 5 (LD) LD2 0.87 LD3 0.82 LD4 0.77 LD5 0.80 Strategic SP1 0.73 5 Planning SP2 0.73 (SP) SP3 0.82 SP4 0.75 SP5 0.64 Customer CF1 0.79 5 Focus (CF) CF2 0.78
  • 27. CF3 0.81 CF4 0.78 CF5 0.80 Process PM1 0.77 5 Management (PM) PM2 0.78 PM3 0.78 PM4 0.76 PM5 0.75 Information & IA1 0.88 5 analysis (IA) IA2 0.75 IA3 0.78 IA4 0.80 IA5 0.84 Human Resource HR1 0.77 5 (HR) HR2 0.76 HR3 0.86 HR4 0.85 HR5 0.72 Knowledge management Knowledge KMP1 0.88 5 Management KMP2 0.76 Process KMP3 0.90 (KMP) KMP4 0.75 KMP5 0.83 Leadership LKM1 0.76 4 in KM LKM2 0.80
  • 28. (LKM) LKM3 0.80 LKM4 0.75 KM culture KMC1 0.78 5 (KMC) KMC2 0.90 KMC3 0.87 KMC4 0.83 KMC5 0.81 KM Technology KMT1 0.84 5 (KMT) KMT2 0.80 KMT3 0.78 KMT4 0.82 KMT5 0.88 KM Measurement KMM1 0.79 4 (KMM) KMM2 0.79 KMM3 0.77 KMM4 0.80 Supply Chain Learning Absorptive AC1 0.81 4 Capacity (AC) AC2 0.83 AC3 0.78 AC4 0.80 Pre-Learning Conditions Shared SC1 0.69 4 Culture SC2 0.77 (SC) SC3 0.87 SC4 0.76
  • 29. Commitment (C) C1 0.89 3 C2 0.84 C3 0.70 Trust (T) T1 0.80 3 T2 0.80 T3 0.75 Communication CO1 0.93 4 (CO) CO2 0.89 CO3 0.90 Integrative IM1 0.78 5 Mechanism IM2 0.88 (IM) IM3 0.83 IM4 0.76 IM5 0.65 Learning LE1 0.78 6 Enablers LE2 0.80 (LE) LE3 0.89 LE4 0.75 LE5 0.78 LE6 0.81 Learning LS1 0.88 5 Structures/ LS2 0.82 System/ LS3 0.74 Process (LS) LS4 0.86 LS5 0.78 Joint Efforts
  • 30. Joint JDM1 0.87 4 Decision JDM2 0.73 Making JDM3 0.84 (JDM) JDM4 0.89 Win-Win WWA1 0.80 4 Approach WWA2 0.67 (WWA) WWA3 0.73 WWA4 0.82 Variables Indicator Reliability Test AVE ** and Items Chrobach Composite Alpha Reliability * Total Quality Management Leadership LD1 0.908 0.9091 0.6964 (LD) LD2 LD3 LD4 LD5 Strategic SP1 0.852 0.8486 0.5422 Planning SP2 (SP) SP3 SP4 SP5 Customer CF1 0.892 0.8938 0.6274 Focus (CF) CF2 CF3
  • 31. CF4 CF5 Process PM1 0.881 0.8779 0.5897 Management (PM) PM2 PM3 PM4 PM5 Information & IA1 0.920 0.9056 0.6582 analysis (IA) IA2 IA3 IA4 IA5 Human Resource HR1 0.885 0.8945 0.6302 (HR) HR2 HR3 HR4 HR5 Knowledge management Knowledge KMP1 0.890 0.9142 0.6827 Management KMP2 Process KMP3 (KMP) KMP4 KMP5 Leadership LKM1 0.904 0.8596 0.6050 in KM LKM2 (LKM) LKM3
  • 32. LKM4 KM culture KMC1 0.907 0.9223 0.7041 (KMC) KMC2 KMC3 KMC4 KMC5 KM Technology KMT1 0.918 0.9139 0.6802 (KMT) KMT2 KMT3 KMT4 KMT5 KM Measurement KMM1 0.901 0.8672 0.6203 (KMM) KMM2 KMM3 KMM4 Supply Chain Learning Absorptive AC1 0.889 0.8805 0.6484 Capacity (AC) AC2 AC3 AC4 Pre-Learning Conditions Shared SC1 0.913 0.8567 0.6008 Culture SC2 (SC) SC3 SC4 Commitment (C) C1 0.907 0.8537 0.6142
  • 33. C2 C3 Trust (T) T1 0.844 0.8267 0.6625 T2 T3 Communication CO1 0.910 0.9328 0.8223 (CO) CO2 CO3 Integrative IM1 0.938 0.8875 0.6019 Mechanism IM2 (IM) IM3 IM4 IM5 Learning LE1 0.933 0.9156 0.6445 Enablers LE2 (LE) LE3 LE4 LE5 LE6 Learning LS1 0.917 0.9200 0.6685 Structures/ LS2 System/ LS3 Process (LS) LS4 LS5 Joint Efforts Joint JDM1 0.907 0.9014 0.6968
  • 34. Decision JDM2 Making JDM3 (JDM) JDM4 Win-Win WWA1 0.884 0.8424 0.5735 Approach WWA2 (WWA) WWA3 WWA4 Variables Indicator Validity Test and Items GFI RMSEA Total Quality Management Leadership LD1 0.98 0.078 (LD) LD2 LD3 LD4 LD5 Strategic SP1 0.99 0.041 Planning SP2 (SP) SP3 SP4 SP5 Customer CF1 0.98 0.080 Focus (CF) CF2 CF3 CF4 CF5
  • 35. Process PM1 0.98 0.052 Management (PM) PM2 PM3 PM4 PM5 Information & IA1 0.99 0.045 analysis (IA) IA2 IA3 IA4 IA5 Human Resource HR1 0.98 0.067 (HR) HR2 HR3 HR4 HR5 Knowledge management Knowledge KMP1 0.98 0.051 Management KMP2 Process KMP3 (KMP) KMP4 KMP5 Leadership LKM1 1.00 0.000 in KM LKM2 (LKM) LKM3 LKM4 KM culture KMC1 0.98 0.043
  • 36. (KMC) KMC2 KMC3 KMC4 KMC5 KM Technology KMT1 0.99 0.022 (KMT) KMT2 KMT3 KMT4 KMT5 KM Measurement KMM1 0.98 0.068 (KMM) KMM2 KMM3 KMM4 Supply Chain Learning Absorptive AC1 0.99 0.047 Capacity (AC) AC2 AC3 AC4 Pre-Learning Conditions Shared SC1 0.99 0.055 Culture SC2 (SC) SC3 SC4 Commitment (C) C1 1.00 0.000 C2 C3
  • 37. Trust (T) T1 1.00 0.000 T2 T3 Communication CO1 0.99 0.021 (CO) CO2 CO3 Integrative IM1 0.99 0.006 Mechanism IM2 (IM) IM3 IM4 IM5 Learning LE1 0.98 0.014 Enablers LE2 (LE) LE3 LE4 LE5 LE6 Learning LS1 0.99 0.034 Structures/ LS2 System/ LS3 Process (LS) LS4 LS5 Joint Efforts Joint JDM1 0.98 0.047 Decision JDM2 Making JDM3
  • 38. (JDM) JDM4 Win-Win WWA1 0.98 0.056 Approach WWA2 (WWA) WWA3 WWA4 Notes: * Composite Reliability (CR) = [([summation][lambda] [??]).sup.2]/[[([summation][lambda][??]).sup.2] + [summation][delta][??])], ([lambda][??] = standardized factor loadings, i = observed variables, [delta][??] = error variance); ** AVE = [summation][lambda][[??].sup.2]/n (i = 1 ..n, [lambda] = standardized factor loadings, i = observed variables) Table 2. Profile of the responding firms Profile Number of Category Respondents Organizational 202 Manufacturing Category Service Business 201 Miner/Raw Material Extrator Function Raw Material Manufacturer Component Manufacturer Final Product Manufacturer Wholesaler Retailer Services Others Contract 113 Formal Contract with suppliers
  • 39. Arrangements Formal Contract with customers No Contract Arrangement ISO 202 Yes Certification No Other quality assurance program Table 3. Independent T-Tests statistics for estimating difference in responses between manufacturing and service companies Variables Category N Mean Std. Deviation TQM Practices Leadership Manufacturing 109 3.875 0.707 Service 93 3.974 0.695 Strategic Manufacturing 109 3.936 0.624 Planning Service 93 3.963 0.633 Customer Focus Manufacturing 109 3.918 0.781 Service 93 3.772 0.725 Process Manufacturing 109 3.797 0.659 Management Service 93 3.912 0.617 Information Manufacturing 109 3.845 0.809 Analysis Service 93 3.887 0.740 Human Resource Manufacturing 109 3.822 0.727 Focus Service 93 3.948 0.674 KM Practices KM Process Manufacturing 109 3.722 0.619 Service 93 3.742 0.662 Leadership Manufacturing 109 3.872 0.675
  • 40. in KM Service 93 3.871 0.760 KM Culture Manufacturing 109 3.882 0.706 Service 93 3.879 0.704 KM Technology Manufacturing 109 3.912 0.775 Service 93 3.778 0.706 KM Measurement Manufacturing 109 3.844 0.764 Service 93 3.847 0.732 Supply Chain Learning Absorptive Manufacturing 109 3.832 0.687 Capacity Service 93 3.769 0.672 Pre-learning Manufacturing 109 3.835 0.677 Conditions Service 93 3.855 0.622 Learning Enablers Manufacturing 109 3.774 0.693 Service 93 3.743 0.784 Learning Support/ Manufacturing 109 3.851 0.726 System Service 93 3.757 0.761 Joint Efforts Manufacturing 109 3.875 0.706 Service 93 3.841 0.699 Variables Std. Error Significance Mean TQM Practices Leadership 0.067 n.s. 0.663 Strategic 0.060 n.s. Planning 0.066 Customer Focus 0.075 n.s.
  • 41. 0.075 Process 0.063 n.s. Management 0.064 Information 0.077 n.s. Analysis 0.077 Human Resource 0.070 n.s. Focus 0.069 KM Practices KM Process 0.060 n.s. 0.069 Leadership 0.065 n.s. in KM 0.079 KM Culture 0.068 n.s. 0.073 KM Technology 0.074 n.s. 0.073 KM Measurement 0.072 n.s. 0.076 Supply Chain Learning Absorptive 0.066 n.s. Capacity 0.065 Pre-learning 0.065 n.s. Conditions 0.065 Learning Enablers 0.066 n.s. 0.081 Learning Support/ 0.070 n.s.
  • 42. System 0.079 Joint Efforts 0.068 n.s. 0.073 Note: n.s. non significant Table 4. Bivariate correlations for dimensions of the studied variables 1 2 3 4 TQM Practices 1 Leadership 1 2 Strategic Planning .764 ** 1 3 Customer Focus .695 ** 595 ** 1 4 Process Management 779 ** .756 ** .680 ** 1 5 Information Analysis .767 ** .638 ** .746 ** 791 ** 6 Human Resource Focus .792 ** .713 ** .683 ** .746 ** KM Practices 7 KM Process .693 ** .674 ** .625 ** .711 ** 8 Leadership in KM .721 ** .672 ** .650 ** .704 ** 9 KM Culture .736 ** .699 ** .553 * .758 ** 10 KM Technology .684 * .613 ** .678 ** .668 ** 11 KM Measurement .694 ** .654 ** .639 ** .659 ** Supply Chain Learning 11 Absorptive Capacity .626 ** .567 ** .596 ** .623 ** 12 Pre-learning Conditions .775 ** .687 ** .684 ** .733 ** 13 Learning Enablers .722 ** .651 ** .647 ** .712 ** 14 Learning Support/System .708 ** .608 ** .659 ** .648 ** 15 Joint Efforts .674 ** .617 ** .638 ** .650 **
  • 43. 5 6 7 8 TQM Practices 1 Leadership 2 Strategic Planning 3 Customer Focus 4 Process Management 5 Information Analysis 1 6 Human Resource Focus 791 ** 1 KM Practices 7 KM Process .722 ** .785 ** 1 8 Leadership in KM .710 ** .743 ** .767 ** 1 9 KM Culture .672 ** 745 ** .784 ** 791 ** 10 KM Technology .688 ** .780 ** .738 ** .775 ** 11 KM Measurement .669 * .766 ** 745 ** .821 ** Supply Chain Learning 11 Absorptive Capacity .620 ** .606 ** .681 ** .700 ** 12 Pre-learning Conditions .728 ** 719 ** .755 ** .756 ** 13 Learning Enablers .684 ** .700 ** 741 ** .729 ** 14 Learning Support/System .646 ** .654 ** .688 ** .670 ** 15 Joint Efforts .668 ** .610 ** .675 ** .702 ** 9 10 11 12 TQM Practices 1 Leadership 2 Strategic Planning 3 Customer Focus 4 Process Management
  • 44. 5 Information Analysis 6 Human Resource Focus KM Practices 7 KM Process 8 Leadership in KM 9 KM Culture 1 10 KM Technology .723 ** 1 11 KM Measurement .748 ** .809 ** 1 Supply Chain Learning 11 Absorptive Capacity .655 ** .704 ** .676 ** 1 12 Pre-learning Conditions .767 ** .751 ** .763 ** .842 ** 13 Learning Enablers .726 ** .679 ** .699 ** 741 ** 14 Learning Support/System .693 ** .695 ** .676 ** .706 ** 15 Joint Efforts .687 ** .713 ** .696 ** .832 ** 13 14 15 TQM Practices 1 Leadership 2 Strategic Planning 3 Customer Focus 4 Process Management 5 Information Analysis 6 Human Resource Focus KM Practices 7 KM Process 8 Leadership in KM 9 KM Culture
  • 45. 10 KM Technology 11 KM Measurement Supply Chain Learning 11 Absorptive Capacity 12 Pre-learning Conditions 1 13 Learning Enablers .819 ** 1 14 Learning Support/System .836 ** 791 ** 1 15 Joint Efforts .861 ** .696 ** .707 ** 1 Note: ** Correlation is significant at 0.01 level (2-tailed) COPYRIGHT 2012 Vilnius Gediminas Technical University No portion of this article can be reproduced without the express written permission from the copyright holder. Copyright 2012 Gale, Cengage Learning. All rights reserved. http://www.thefreelibrary.com/A+structural+approach+to+integrating+total+quality+management +and...-a0311049051