Investigating the mediating role of OLC in the relationship between TQMP, SCMP, and FSP
In authors' knowledge, this study is among the few pioneer studies if any to assess the relationship between SCMP, TQMP, and FSP through OLC on Pakistani manufacturing firms in general and textile firms in particular.
TQMP and SCMP both are management philosophies to achieve customer satisfaction and optimal performance (Gunasekaran et al., 2001; Vanichchinchai, 2014; Vanichchinchai & Igel, 2011).
The primary data of the study, carried by Vanichchinchai and Igel (2011), has been gathered from 171 managers of automotive industry of Thailand and they found a significant relationship between SCMP, TQMP, and FSP.
Prior findings suggest that firms learning capabilities can help researchers to make a better understanding of the relationship between TQMP and firm performance (Ali et al., 2014).
From prior findings, it is cited that TQMP has a positive and significant relationship with organizational performance.
In line with all the hypotheses presented earlier, this research proposed a conceptual model (figure 1) that investigates the structural relationships among these four variables namely FSP, TQMP, SCMP, and OLC.
The mean value of TQMP is 3.32 indicating a neutral attitude towards TQMP.
FSP, SCMP, TQMP, and SCMP are positively and significantly correlated at a moderate level.
The results of hypothesis 1 to 3 shows that Supply chain practices (SCMP), TQMP and OLC has a significant direct and positive impact on FSP and are consistent with Vanichchinchai et al.
It is also proposed that OLC will mediate the effect of TQMP on FSP and of SCMP on FSP.