Cost of quality in manufacturing food companies. The critical factors affecting the cost of quality and its effect on the performance of these companies
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Date
2023-10-10
Authors
Δημητράντζου, Χριστίνα
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Abstract
Purpose – The present thesis focuses on the Food and Beverage (F&B) companies and aims at determining the influence of organizational structure, competitive strategy and innovation on Cost of Quality (CoQ). Determining the influence of CoQ on business performance of these companies is also an aim of this thesis.
Design/methodology/approach – The Greek F&B companies were approached through a structured questionnaire and 322 participated in the study. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were applied to extract and validate the latent constructs examined, while their relationships were determined through applying the Structural Equation Modeling (SEM) methodology.
Findings – Both the dimensions of a company’s organizational structure, namely centralization and formalization, as well as one of the two types of a company’s competitive strategy, namely cost leadership strategy, positively influence CoQ. On the contrary, the other type of a company’s competitive strategy, namely differentiation strategy, and the innovation do not influence CoQ. Moreover, CoQ has a significant positive effect on the business performance dimensions, namely financial and operational performance.
Research limitations/implications – The small sample size of the F&B companies operating in one country, the different F&B sub-sectors, the subjective character of the data collected and the cross-sectional nature of the study are the limitations of the present thesis.
Practical implications – This thesis provides academicians and practitioners with a better understanding of the factors that influence the quality cost. Moreover, this study provides guidelines for F&B companies to enhance their business performance through managing CoQ and its influencing factors.
Originality/value – Τhis is the first study that examines, in a single model, the effects of organizational structure, competitive strategy and innovation on CoQ and the effect of CoQ on business performance of the F&B companies.
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Keywords
Cost of Quality (CoQ), Organizational structure, Competitive strategy, Business performance, Food and Beverage (F&B) companies