Acquisition or investment: a manufacturer quality improvement strategic choice

IF 3.8 Q2 MANAGEMENT

TQM Journal Pub Date : 2023-04-07 DOI:10.1108/tqm-06-2022-0191

Su-Ju Wang, Huaming Song, Hongfu Huang, Qiang Huang

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引用次数: 0

Abstract

PurposeThis paper explores how the manufacturer’s strategic choice (acquisition or investment) impacts product quality in a supply chain comprising two complementary suppliers and a common manufacturer.Design/methodology/approachThe manufacturer faces six strategic choices to improve product quality: acquiring or investing in the high-capable supplier, the low-capable supplier, or both. As the Stackelberg leader, the manufacturer determines which strategy is adopted, while suppliers are separately responsible for components’ quality and wholesale prices. The authors use game theory and calculate the model with Mathematica.FindingsThe authors develop analytical models to analyze how acquisition costs, investment proportions, component importance and quality improvement coefficients influence decision-makers. The results show that the highest quality may not benefit the manufacturer. Investing in or acquiring a low-capable supplier is better than a high-capable supplier under certain conditions. If the gaps between two suppliers’ quality improvement coefficients and the importance of two components are dramatic, the manufacturer should choose an investment strategy.Originality/valueThis study contributes to the complementary supply chain management by comparing two kinds of strategies-acquisition and investment, with a high-capable supplier and a low-capable supplier.

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收购或投资：制造商质量改进的战略选择

本文探讨了由两个互补的供应商和一个共同的制造商组成的供应链中，制造商的战略选择(收购或投资)如何影响产品质量。设计/方法/途径制造商面临六种提高产品质量的战略选择:收购或投资于高能力的供应商，低能力的供应商，或两者兼而有之。作为Stackelberg的领导者，制造商决定采用哪种策略，而供应商分别负责组件的质量和批发价格。作者运用博弈论，并利用Mathematica软件对模型进行了计算。研究结果作者开发了分析模型来分析采购成本、投资比例、组件重要性和质量改进系数如何影响决策者。结果表明，最高的质量可能不利于制造商。在一定条件下，投资或收购能力较低的供应商比能力较高的供应商更好。如果两个供应商的质量改进系数和两个组件的重要性之间的差距很大，制造商应该选择投资策略。本研究通过对高能力供应商和低能力供应商的收购和投资两种战略进行比较，为互补供应链管理做出贡献。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

TQM Journal Business, Management and Accounting-Business, Management and Accounting (all)

CiteScore

9.10

自引率

0.00%

发文量

114

期刊介绍： Commitment to quality is essential if companies are to succeed in a commercial environment which will be virtually unrecognizable in less than a decade. Changing attitudes, changing perspectives and changing priorities will revolutionise the structure and philosophy of future business practice - and TQM will be at the heart of that metamorphosis. All aspects of preparing for, developing, introducing, managing and evaluating TQM initiatives.