Interaction Effect of Management Control Systems and Process Quality Management on Product Quality Performance

DOI: 10.5176/2251-1997_AF14.43

Authors: Intan Oviantari

Abstract:

Quality performance is an important element to increase company performance. Prior research has viewed product quality and process quality management as one of the major competitive priorities for attaining a Sustainable Competitive Advantage.
This study uses self-reported survey data from 30 West Java manufacturing business units and examines the interaction effects of process quality management and management control systems on product quality performance. One measure of process quality management and three measures of management control systems (goals, feedback and incentives) were used. Internal quality and external quality were the two product quality performance measures.
Results indicate significant positive interaction effects of process quality management and two component of management controll systems (goal and incentives) measures on internal quality management. The results also indicate that, except for feedback, external quality is a function of the interaction between quality management and management control systems variables.

Keywords: Goal, Feedback, Incentive, Process Quality Management, Quality Performance, Management Control System