Service quality in supply chain: empirical evidence from Indian automotive industry

Purpose - This paper aims to conceptualize the role of service quality in the manufacturing supply chain, present a scale to measure the same, and a model that proposes that internal and external service quality initiatives lead to loyalty and satisfaction of supplier, which in turn are determinants of competitive advantage and organizational performance of the focal organization. Design/methodology/approach - The research design for this paper includes a combination of literature review, exploratory interviews with scholars and practitioners, and a survey of 156 practitioners in three automobile-manufacturing companies in North India. Structural equation modeling has been used for data analysis. Findings - The paper has developed a scale to measure service quality in the supply chain, and presented a model and set of propositions related to service quality in the supply chain. The model proposes linkages of service quality with loyalty, satisfaction, competitive advantage and organizational performance. The author has empirically tested the model at supplier-manufacturer dyad and found that the data fit the model. Research limitations/implications - Future researchers could validate this scale, and empirically test the proposed model. Insights derived from supplier-manufacturer dyad may be transferred to other dyads of supply chain such as manufacturer-distributor, distributor-retailer, and manufacturer and its own employees. Practical implications - This study would be of interest to manufacturing industry practitioners interested in internal and external service quality improvements. This study finds support for strengthening relationships between a focal organization and its suppliers. Service quality-based business processes can help strengthen business relationships, develop synchronized linkages between supply chain members, and consequently gain competitive advantage. Original/value - There are few empirical studies that measure service quality in manufacturing industries or the supply chain. The role of internal and external service quality and their linkages with loyalty, satisfaction, competitive advantage and organizational performance has previously not been conceptualized.