Working towards Supplier Service Quality and EODB: Insights from Indian SMEs

Surjit Kumar Gandhi*, Anish Sachdeva**, Ajay Gupta***
* Research Scholar, Department of Industrial and Production Engineering, Dr. B. R. Ambedkar National Institute of Technology, Jalandhar, Punjab, India.
**-*** Associate Professor, Department of Industrial and Production Engineering, Dr. B. R. Ambedkar National Institute of Technology, Jalandhar, Punjab, India.
Periodicity:December - February'2018
DOI : https://doi.org/10.26634/jmgt.12.3.13880

Abstract

The formation of manufacturer-supplier partnerships has emerged as a significant and popular competitive strategy in marketing channel relationships. To ensure their operational and financial benefits, small-medium manufacturing enterprises must work closely with the suppliers and the inter-firm linkage between the manufacturer-supplier units may involve all possible forms of economic relationships between them. This study highlights that prior to assess supplier service, the internal working of manufacturing units towards supply function and also ability to provide Ease of Doing Business (EODB) needs to be assessed. 120 executives working in supplier units providing raw materials and other supplies to SMEs (Small and Medium-sized Enterprises) located in north India responded to a questionnaire survey. The respondents were asked to assess service quality offered by the buyer units towards facilitating the supplier's working and EODB on 1 to 5 Likert scale. Construct validation using exploratory factor analysis showed an interpretable latent structure consisting of 4 determinants and 21 indicators. Confirmatory factor analysis synthesized a purified, valid and reliable service quality measurement scale with 4 determinants and 16 indicators. It was concluded that SMEs need to improve working towards suppliers on four dimensions, viz., Assurance, Communication, Adaptability, and Empathy to carve a win-win situation. The scale thus developed can be used by managers of small-medium manufacturing units in identification of opportunities for assuring service excellence to their suppliers to facilitate their working and improve performance thereby mutually benefitting both partners and the whole supply chain.

Keywords

Suppliers, Small-Medium Sized Manufacturing Enterprises (SMEs), Internal Service Quality, Measurement Scale, Ease of Doing Business (EODB), EFA, CFA, Reliability, Validity.

How to Cite this Article?

Gandhi,S.K., Sachdeva, A., and Gupta, A. (2018). Working towards Supplier Service Quality and EODB: Insights from Indian SMEs. i-manager’s Journal on Management, 12(3), 11-30. https://doi.org/10.26634/jmgt.12.3.13880

References

[1]. Abdul-Muhmin, A. G. (2002). Effects of suppliers' marketing program variables on industrial buyers'relationship satisfaction and commitment. Journal of Business & Industrial Marketing,17(7), 637-651.
[2]. Ahire, S. L., Golhar, D. Y., & Waller, M. A. (1996).Development and validation of TQM implementation constructs. Decision Sciences, 27(1), 23-56.
[3]. Akan, P. (1995). Dimensions of service quality: A study in Istanbul. Managing Service Quality: An International Journal, 5(6), 39-43.
[4]. Babakus, E. &Mangold, W. G. (1992). Adapting the SERVQUAL scale to hospital services: An empirical investigation. Health Services Research, 26(6), 767-786.
[5]. Bagozzi, R. P. & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.
[6]. Banwet, D. K. &Datta, B. (2002). Effect of service quality on post-visit intentions over time: The case of a library. Total Quality Management, 13(4), 537-546.
[7]. Bienstock, C. C., Mentzer, J. T., & Bird, M. M. (1997). Measuring physical distribution service quality. Journal of the Academy of marketing Science, 25(1), 31-44.
[8]. Bollen, K. A., & Ting, K. F. (1993). Confirmatory tetrad analysis. Sociological Methodology, 23, 147-175.
[9]. Bollen, K. A. (1989). Structural Equations with Latent Variables. Wiley, New York.
[10]. Brensinger, R. P. & Lambert, D. M. (1990). Can the SERVQUAL scale be generalized to business-to-business services? Knowledge Development in Marketing, 289- 301.
[11]. Broderick, A. J. &Vachirapornpuk, S. (2002). Service quality in internet banking: The importance of customer role. Marketing Intelligence & Planning, 20(6), 327-335.
[12]. Buttle, F. (1996). SERVQUAL: Review, critique, research agenda. European Journal of Marketing, 30(1), 8-32.
[13]. Byrne, B. M. (1994). Structural Equation Modeling with EQS and EQS/Windows: Basic Concepts, Applications, and Programming. Sage.
[14]. Carman, J. (1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing, 66(1), 33-55.
[15]. Carr, C. L. (2007). The Fairserv model: Consumer reactions to services based on a multidimensional evaluation of service fairness. Decision Sciences, 38(1), 107-130.
[16]. Cavinato, J. L. (1987). Purchasing performance: what makes the magic? Journal of Supply Chain Management, 23(3), 10-16.
[17]. Chin, W. W., Marcolin, B. L., &Newsted, P. R. (1996). A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and voice mail emotion/ adaptation study, Proceedings of Seventeenth International Conference of Information Systems (pp. 21- 41). Cleveland, OH.
[18]. Churchill Jr, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 64-73.
[19]. Cronin Jr, J. J. & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. The Journal of Marketing, 56(3), 55-68.
[20]. Cunningham, L. F., Young, C. E., & Lee, M. (2002). Cross-cultural perspectives of service quality and risk in air transportation. Journal of Air Transportation, 7(1), 3-26.
[21]. Dabholkar, P. A. (1996). Consumer evaluations of new technology-based self-ser vice options: An investigation of alternative models of service quality. International Journal of Research in Marketing, 13(1), 29- 51.
[22]. Dabholkar, P. A., Shepherd, C. D., & Thorpe, D. I. (2000). A comprehensive framework for service quality: An investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing, 76(2), 139-173.
[23]. Davis, T. R. (1992). Part I: Satisfying internal customers: The link to external customer satisfaction. Planning Review, 20(1), 34-40.
[24]. Feldman, S. (1991). Keeping the customer satisfiedinside and out. Management Review, 80(11), 58-61.
[25]. Finn, D. W. & Lamb, C. W. (1991). An evaluation of the SERVQUAL scales in a retailing setting. Advances of Consumer Research, 18(1), 483-490.
[26]. Fornell, C. &Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
[27]. Forza, C. (2002). Survey research in operations management : A process- based perspective. International Journal of Operations & Production Management, 22(2), 152-194.
[28]. Frost, F. A., & Kumar, M. (2000). INTSERVQUAL–an internal adaptation of the GAP model in a large service organisation. Journal of Services Marketing, 14(5), 358- 377.
[29]. Ghobadian, A., Speller, S., & Jones, M. (1994). Service quality: Concepts and models. International Journal of Quality & Reliability Management, 11(9), 43- 66.
[30]. Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of Marketing, 18(4), 36-44.
[31]. Gunasekaran, A., Patel, C., &McGaughey, R. E. (2004). A framework for supply chain performance measurement. International Journal of Production Economics, 87(3), 333-347.
[32]. Hahn, C. K., Watts, C. A., & Kim, K. Y. (1990). The supplier development program: A conceptual model. Journal of Supply Chain Management, 26(2), 2-7.
[33]. Hair, J. F. Jr., Anderson, R. E., Tatham, R. L., & Black, W. thC. (2005). Multivariate Data Analysis, 5 Edn. Pearson Eudcation, New Delhi, India.
[34]. Hammer, M. (2001). The superefficient company. Harvard Business Review, 79(8), 82-93.
[35]. Hartley, J. L. & Choi, T. Y. (1996). Supplier development: Customers as a catalyst of process change. Business Horizons, 39(4), 37-44.
[36]. Haywood-Farmer, J. (1988). A conceptual model of service quality. International Journal of Operations & Production Management, 8(6), 19-29.
[37]. Hendrick, T. E. &Ruch, W. A. (1988). Determining performance appraisal criteria for buyers. Journal of Supply Chain Management, 24(2), 18-26.
[38]. Hines, P. (1994). Creating World Class Suppliers: Unlocking Mutual Competitive Advantage. London: Pitman Pub.
[39]. Johnston, R. (1995). The determinants of service quality: satisfiers and dissatisfiers. International Journal of Service Industry Management, 6(5), 53-71.
[40]. Joseph, W. B., Gardner, J. T., Thach, S., & Vernon, F. (1995). How industrial distributors view distributor-supplier partnership arrangements. Industrial Marketing Management, 24(1), 27-36.
[41]. Kang, G. D. & James, J. (2004). Service quality dimensions: An examination of Grönroos's service quality model. Managing Service Quality: An International Journal, 14(4), 266-277.
[42]. Kaynak, H. (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21(4), 405-435.
[43]. Kaynak, H. & Hartley, J. L. (2008). A replication and extension of quality management into the supply chain. Journal of Operations Management, 26(4), 468-489.
[ [44]. Kelkar, M. (2010). SERVDIV: A Vedic approach to measurement of service quality. Services Marketing Quarterly, 31(4), 420-433.
[45]. Kumar, N., Scheer, L. K., &Steenkamp, J. B. E. (1995). The effects of perceived interdependence on dealer attitudes. Journal of Marketing Research, 32(3), 348-356.
[46]. Lee, H., Lee, Y., &Yoo, D. (2000). The determinants of perceived service quality and its relationship with satisfaction. Journal of Services Marketing, 14(3), 217- 231.
[47]. Lee, H. L. (2004). The triple-A supply chain. Harvard Business Review, 82(10), 102-113.
[48]. Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Rao, S. S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124.
[49]. MacDuffie, J. P. & Helper, S. (1997). Creating lean suppliers: Diffusing lean production through the supply chain. California Management Review, 39(4), 118-151.
[50]. Maheshwari, S. K. & Zhao, X. (1994). Benchmarking quality management practices in India. Benchmarking for Quality Management & Technology, 1(2), 5-23.
[51]. Mattsson, J. (1992). A service quality model based on an ideal value standard. International Journal of Service Industry Management, 3(3), 18-33.
[52]. Nagel, P. J. &Cilliers, W. W. (1990). Customer satisfaction: A comprehensive approach. International Journal of Physical Distribution & Logistics Management, 20(6), 2-46.
[53]. Nix, N. (2001). Customer service in supply chain management context. In Mentzer, J. T. (Ed.), Supply Chain Management (pp. 358-359). Sage, New York.
[54]. Nunnally, J. C. (1978). Psychometric Theory, 2 edition. New York: McGraw Hill.
[55]. Oh, H. (1999). Service quality, customer satisfaction, and customer value: A holistic perspective. International Journal of Hospitality Management, 18(1), 67-82.
[56]. Ostrowski, P. L., O'Brien, T. V., & Gordon, G. L. (1993). Service quality and customer loyalty in the commercial airline industry. Journal of Travel Research, 32(2), 16-24.
[57]. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50.
[58]. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple item scale for measuring consumer perception of service quality, Journal of Retailing, 64(1), 12-37.
[59]. Parmata, U. M. D., Rao, S. B., &Rajashekhar, B. (2016). Measuring service quality in pharmaceutical supply chain–distributor's perspective. International Journal of Pharmaceutical and Healthcare Marketing, 10(3), 258-284.
[60]. Petersen, K. J., Handfield, R. B., &Ragatz, G. L. (2003). A model of supplier integration into new product development. Journal of Product Innovation Management, 20(4), 284-299.
[61]. Pfau, B., Detzel, D., & Geller, A. (1991). Satisfy your internal customers. Journal of Business Strategy, 12(6), 9- 13.
[62]. Philip, G. &Hazlett, S. A. (1997). The measurement of service quality: A new PCP attributes model. International Journal of Quality & Reliability Management, 14(3), 260- 286.
[63]. Pitt, L. F., Watson, R. T., &Kavan, C. B. (1995). Service quality: A measure of information systems effectiveness. MIS Quarterly, 19(2), 173-187.
[64]. Prakash, G. (2011). Service quality in supply chain: Empirical evidence from Indian automotive industry. Supply Chain Management: An International Journal, 16(5), 362-378.
[65]. Robson, C. (2002). Real World Research, 2 Edition. Oxford: Blackwell.
[66]. Rosen, L. D. &Karwan, K. R. (1994). Prioritizing the dimensions of service quality: An empirical investigation and strategic assessment. International Journal of Service Industry Management, 5(4), 39-52.
[67]. Saleh, F. & Ryan, C. (1991). Analysing service quality in the hospitality industry using the SERVQUAL model. Service Industries Journal, 11(3), 324-345.
[68]. Saraph, J. V., Benson, P. G., & Schroeder, R. G. (1989). An instrument for measuring the critical factors of quality management. Decision Sciences, 20(4), 810-829.
[69]. Saunders, M., Lewis, P. &Thornhil, A. (2005). rdResearch Methods for Business Students, 3 Edition, Pearson Education, New Delhi.
[70]. Schellhase, R., Hardock, P., &Ohlwein, M. (2000). Customer satisfaction in business-to-business marketing: The case of retail organizations and their suppliers. The Journal of Business and Industrial Marketing, 15(2-3), 106- 121.
[71]. Schvaneveldt, S. J., Enkawa, T., &Miyakawa, M. (1991). Consumer evaluation perspectives of service quality: Evaluation factors and two-way model of quality. Total Quality Management, 2(2), 149-162.
[72]. Seth, N., Deshmukh, S. G., &Vrat, P. (2006). SSQSC: A tool to measure supplier service quality in supply chain. Production Planning & Control, 17(5), 448-463.
[73]. Singh, M., Khan, I. A., & Grover, S. (2013). Assessment and selection of vendor in a manufacturing organisation–A graph theoretic approach. International Journal of Logistics Systems and Management, 14(4), 447-472.
[74]. Singh, B. &Khanduja, D. (2010). SMED for quick changeover in foundry SMEs. International Journal of Productivity and Performance Management, 59(1), 98- 116.
[75]. Smith, R. &Ennew, C. (2001). Service Quality and its Impact on Word-of-mouth Communication in Higher Education. University of Nottingham in Malaysia, Division of Business and Management.
[76]. Soteriou, A. C. &Stavrinides, Y. (2000). An internal customer service quality data envelopment analysis model for bank branches. The International Journal of Bank Marketing, 18(5), 246-252.
[77]. Spreng, R. A., &Mackoy, R. D. (1996). An empirical examination of a model of perceived service quality and satisfaction. Journal of Retailing, 72(2), 201-214.
[78]. Stanley, L. L. & Wisner, J. D. (2002). The determinants of service quality: issues for purchasing. European Journal of Purchasing & Supply Management, 8(2), 97-109.
[79]. Sureshchandar, G. S., Rajendran, C., & Anantharaman, R. N. (2002). Determinants of customerperceived service quality: A confirmatory factor analysis approach. Journal of Services Marketing, 16(1), 9-34.
[80]. Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (1997). Retail service quality and perceived value: A comparison of two models. Journal of Retailing and Consumer Services, 4(1), 39-48.
[81]. Tanaka, J. S. (1987). How big is big enough?: Sample size and goodness of fit in structural equation models with latent variables. Child Development, 58(1), 134-146.
[82]. Teas, R. K. (1993). Expectations, performance evaluation, and consumers' perceptions of quality. The Journal of Marketing, 57(4), 18-34.
[83]. Trochim, W. M. K. (2007). Research Methods. Biztantra, New Delhi.
[84]. Vandenbosch, M. &Dawar, N. (2002). Beyond better products: Capturing value in customer interactions. MIT Sloan Management Review, 43(4), 35-42.
[85]. Watts, C. A. & Hahn, C. K. (1993). Supplier development programs: an empirical analysis. Journal of Supply Chain Management, 29(1), 10-17.
[86]. Wu, M. Y., Weng, Y. C., & Huang, I. C. (2012). A study of supply chain partnerships based on the commitmenttrust theory. Asia Pacific Journal of Marketing and Logistics, 24(4), 690-707.
[87]. Zhao, X., Bai, C., &Hui, Y. V. (2002). An empirical assessment and application of SERVQUAL in a mainland Chinese department store. Total Quality Management, 13(2), 241-254.
[88]. Zhu, F. X., Wymer, W., & Chen, I. (2002). IT-based services and service quality in consumer banking. International Journal of Service Industry Management, 13(1), 69-90.

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
USD EUR INR USD-ROW
Pdf 35 35 200 20
Online 35 35 200 15
Pdf & Online 35 35 400 25

If you have access to this article please login to view the article or kindly login to purchase the article
Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.