Canonical correlation analysis between supply chain quality management and competitive advantages

Abstract

Competitive environment of today's organizations, more than ever, is extensive, and the major concern for managers is to preserve and promote the sustainable competitive advantage. Companies have an obligation to improve their product quality and have extensive and close cooperation with other companies involved in the supply chain of products. Supply chain quality management (SCQM) is a systematic approach to improve the performance that integrates supply chain partners and uses the opportunity in the best way, establish linkages between upstream and downstream flows, and investigate on creating value and satisfaction of intermediaries and final customers. Furthermore, achieving competitive advantages enables an organization to create a remarkable position in market and differentiate itself from competitors. This paper aims to understand the relationships between SCQM and competitive advantage. Sixty-eight experts of 25 companies in Sahami Alyaf (SA) supply chain has been participated in this research. The research method used for this article is descriptive correlation. To assess the relationships between the criteria, canonical correlation analysis was used. The result shows that the SCQM and competitive advantages have a meaningful relationship. It also shows that most important variable in the linear combination of SCQM and competitive advantages are "customer focus and quality," respectively.