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Meeting quality and cost imperatives in a global market

Stanley E. Fawcett (Marriott School of Management, Brigham Young University, Provo, Utah, USA)
Roger J. Calantone (Eli Broad School of Management, Michigan State University, East Lansing, Michigan, USA)
Anthony Roath (Eli Broad School of Management, Michigan State University, East Lansing, Michigan, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 1 August 2000

Abstract

The complexity, uncertainty, and diminished control found in global operations hinder the development of world‐class competencies. For example, as a firm rationalizes manufacturing, logistical challenges increase. As a result, cost advantages achieved through production sharing are often offset by higher logistics costs. This multi‐method explores the cross‐functional development of quality and cost competencies in an international production sharing setting. Overall, the study found that information and planning capabilities are vital antecedants to cost and quality competencies. The impact of cost on a firm’s performance is direct, while the impact of quality is indirect, through productivity enhancements.

Keywords

Citation

Fawcett, S.E., Calantone, R.J. and Roath, A. (2000), "Meeting quality and cost imperatives in a global market", International Journal of Physical Distribution & Logistics Management, Vol. 30 No. 6, pp. 472-499. https://doi.org/10.1108/09600030010340851

Publisher

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MCB UP Ltd

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