Organizational culture, quality improvement tools and methodologies, and business performance of a supply chain

Abstract

Unlike previous studies that have revealed a link between quality improvement programs and organizational culture typologies in individual companies, this study describes organizational culture dimensions that affect the use of quality improvement tools and methodologies and how both affect supply chain company performance. Structural equation modeling methods are applied to a sample of 200 organizations in the supply chain of a Canadian multinational company. The results show that employee promotion and investment constitutes the most influential cultural dimension. Organizational objectives and an employee reward system individually affect Kaizen. When the level of formalization in an organization is high, Kaizen and total quality management tools are used more intensively. When the level of formalization is low, lean manufacturing and internal audits are used more intensively. Superior communication in an organization causes plan-do-check-act approaches, lean manufacturing methods, corrective actions and internal audits to be used less intensively. Generally speaking, most quality improvement tools and methodologies positively influence business performance. These results suggest that organizations can improve business performance levels by selecting appropriate quality improvement programs depending on existing organizational culture dimensions and may thereby develop an organizational culture that enables successful quality improvements in a supply chain context.