Enhancing quality and innovation performance: the role of supplier communication and knowledge development

Although effective supplier communication has been suggested as a crucial approach for enhancing supply chain quality and innovation, research on how and under what conditions it affects performance is still in its evolving domain, especially in emerging and turbulence markets. Using the knowledge-based view, this study suggests that supplier communication and knowledge development can be complementary assets to enhance firm innovation and quality performance. Using empirical data collected from 165 manufacturing plants in Vietnam, this study exerted that supplier communication practices alone might not be enough for quality and innovation improvements. The results indicated that supplier knowledge development acts as a mediator in realising supplier collaboration for improving both new product development and quality performance. The findings highlight the importance of leveraging supplier external technical knowledge and implementing innovation processes for quality and innovation improvements. Besides, in a more turbulence environment, supplier communication strengthens the positive impact on supplier knowledge development on quality conformance and innovation. By including both supplier knowledge development and supplier communication, this paper adds greater comprehensiveness and richness to the relationship between quality and knowledge management practices.