Causal Relationships Model for Total Quality Management, Supply Chain Management, and Organizational Performance: the Automotive and Automotive Parts Industries in the Eastern Economic Corridor (EEC), Thailand

Abstract

Fluctuations in the global economy in the early 21st century due to financial collapses and unexpected circumstances surrounding the COVID-19 pandemic have greatly affected the competitiveness and viability of many industries around the world including Automotive and Automotive Parts in the Eastern Economic Corridor (EEC), Thailand. Effective management strategies including total quality management (TQM) and supply chain management (SCM) will guide the better performance of businesses. Additionally, the previous published studies in Automotive and Automotive Parts industries in these issues are limited. Hence, the objective of this study is to investigate the causal relationships model which focuses on total quality management (TQM), supply chain management (SCM) and organizational performance (OP) of the Automotive and Automotive Parts Industries in the Eastern Economic Corridor (EEC). Data were collected from 212 companies operating in the Automotive and Automotive Parts Industries in Thailand’s Eastern Economic Corridor (EEC). The data comprised answers from a self-administered survey, and these were analyzed using descriptive statistics and the structural equations modeling (SEM) method. The findings suggest that together, TQM and SCM generate positive outcomes for organizational performance. Furthermore, supply chain management mediates the relationship between TQM and organizational performance. Hence, effective total quality management and supply chain management can be integrated into businesses’ management and operational strategies to improve the financial and non-financial aspects of their performance.