Back
 AJIBM  Vol.7 No.1 , January 2017
“Is Quality Ensuring to Get Competitive Advantages in Auto Manufacturing Industries?” —A Study of Volvo Group
Abstract: In today’s business world “Total Quality Management” strategy is utmost important for a company in order to survive in the rapidly growing competitive market. It helps a company to increase the level of competence and allows it to compete in the market. To meet expected superior need of customers, Volvo delivers cleaner, safer and smarter transport solutions by concentrating on solutions-based approach since its inception. This core value of Volvo is urging to conduct a qualitative study on quality of Volvo toward attaining competitive advantage. This study attempted to investigate the role of quality management on Volvo’s competitiveness through a case study method. While exploring the secondary data, this study found that attributes such as dynamic leadership, positive and ethical corporate culture, customer centric orientation, empowering employees helped Volvo to achieve competitive advantage over its competitor. This study also found that practicing Six Sigma, maintaining quality and ISO standards, and establishing quality council have a positive role in attaining Volvo’s operational excellences and in achieving well-functioning society. Volvo’s strategy of winning competitive advantage is an example which should be followed by others to achieve competitive advantage in order to be able to sustain in today’s highly competitive market and keeping pace with rapid changes.
Cite this paper: Hossain, M. , Tasnim, M. and Hasan, M. (2017) “Is Quality Ensuring to Get Competitive Advantages in Auto Manufacturing Industries?” —A Study of Volvo Group. American Journal of Industrial and Business Management, 7, 48-68. doi: 10.4236/ajibm.2017.71005.
References

[1]   Deming, W. (1982) Quality, Productivity, and Competitive Position, Center for Advanced Engineering Studies. Massachusetts Institute of Technology, Cambridge.

[2]   Bergman and Klefsjö (2010) Quality—From Customer Needs to Customer Satisfaction. 2nd Edition, Studentlitteratur, Lund.

[3]   Corbett, L.M., Adam, E.E., Harisons, N.J., Lee, T.S., Rho, B.H. and Samson, D. (1998) A Study of Quality Management Practices and Performance in Asia and the South Pacific. International Journal of Production Research, 36, 2597-2607.
https://doi.org/10.1080/002075498192724

[4]   Feigenbaum, A.V. (1961) Total Quality Control. McGraw-Hill, New York.

[5]   Crosby, P.B. (1979) Quality Is Free. McGraw-Hill, New York.

[6]   Garvin, D. (1984) What Does Product Quality Really Mean? Sloan Management Review, 1, 25-41.

[7]   Prajogo, D.I. and McDermott, C.M. (2005) The Relationship between Total Quality Management Practices and Organizational Culture. International Journal of Operations & Production Management, 25, 1101-1122.
https://doi.org/10.1108/01443570510626916

[8]   Rad, A.M.M. (2006) The Impact of Organizational Culture on the Successful Implementation of Total Quality Management. The TQM Magazine, 18, 606-625.
https://doi.org/10.1108/09544780610707101

[9]   Ho, S.K. and Fung, C.K. (1994) Developing a TQM Excellence Model. The TQM Magazine, 6, 24-30.
https://doi.org/10.1108/09544789410073612

[10]   Dean, J.W. and Bowen, D.E. (1994) Management Theory and Total Quality: Improving Research and Practice through Theory Development. Academy of Management Review, 19, 392-418.

[11]   Hoogervorst, J.A.P, Koopman, P.L. and Flier, H. (2005) Total Quality Management: The Need for an Employee-Centred, Coherent Approach. The TQM Magazine, 17, 92-106.
https://doi.org/10.1108/09544780510573084

[12]   Beal, M. and Lockamy III, A. (1999) Quality Differentiation for Competitive Advantage: A Contingency Approach. European Journal of Innovation Management, 2, 71-81.
https://doi.org/10.1108/14601069910269781

[13]   Mehra, S. and Agrawal, S.P. (2003) Total Quality as a New Global Competitive Strategy. International Journal of Quality & Reliability Management, 20, 1009-1025.
https://doi.org/10.1108/02656710310500824

[14]   Hill, T. (1995) Manufacturing Strategy. Irwin Professional Publishing, New York.
https://doi.org/10.1007/978-1-349-13724-4

[15]   Adam, E.E. (1992) Quality Improvement as an Operations Strategy. Industrial Management & Data Systems, 4, 3-12.
https://doi.org/10.1108/02635579210012223

[16]   Venkatraman, N. and Prescott, J.E. (1990) Environment Strategy Coalignment: An Empirical Test of Its Performance Implications. Strategic Management Journal, 11, 1-23.
https://doi.org/10.1002/smj.4250110102

[17]   Reed, R., Lemak, D. and Montgomery, J. (1996) Beyond Process: TQM Content and Firm Performance. Academy of Management Review, 21, 173-202.

[18]   Shenawy, E.E, Baker, T. and Lemak, D.J. (2006) A Meta-Analysis of the Effect of TQM on Competitive Advantage. International Journal of Quality & Reliability Management, 24, 442-471.
https://doi.org/10.1108/02656710710748349

[19]   Brah, S.A., Lee, S.L. and Rao, B.M. (2002) Relationship between TQM and Performance of Singapore Companies. International Journal of Quality & Reliability Management, 19, 356-379.
https://doi.org/10.1108/02656710210421553

[20]   Joiner, T.A. (2007) Total Quality Management and Performance: The Role of Organization Support and Co-Worker Support. International Journal of Quality & Reliability Management, 24, 617-627.
https://doi.org/10.1108/02656710710757808

[21]   Powell, T.C. (1995) Total Quality Management as Competitive Advantage: A Review and Empirical Study. Strategic Management Journal, 16. 15-37.
https://doi.org/10.1002/smj.4250160105

[22]   Helms, M.M. (1996) Perspectives on Quality and Productivity for Competitive Advantage. The TQM Magazine, 8, 5-10.
https://doi.org/10.1108/09544789610118403

[23]   Jabnoun, N. (2002) Control Processes for Total Quality Management and Quality Assurance. Work Study, 51, 182-190.

[24]   Juran (1989) Juran on Leadership for Quality. Free Press, New York.

[25]   Ozeki, K. and Asaka, T. (1990) Handbook of Quality Tools. The Japanese Approach Productivity
Press, Cambridge.

[26]   Balthazard, P.A. and Gargeya, V.B. (1995) Reinforcing QFD with Group Support Systems:
Computer Supported Collaboration for Quality in Design. International Journal of Quality & Reliability Management, 12, 43-62.
https://doi.org/10.1108/02656719510089911

[27]   Laszlo, G.P. (1997) The Role of Quality Cost in TQM. The TQM Magazine, 9, 410-413.
https://doi.org/10.1108/09544789710367811

[28]   ISO (2010) ISO 9000 Essentials.
http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_
management/iso_9000_essentials.htm


[29]   ISO (2010) ISO 9000—Quality Management.
http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_
management.htm


[30]   Singels, J., RueEl, G. and Water, H.V.D. (2001) ISO 9000 Series: Certification and Performance.
International Journal of Quality and Reliability Management, 18, 62-75.
https://doi.org/10.1108/02656710110364477

[31]   Johannse, C.G. (1996) ISO 9000—A Managerial Approach. Library Management, 17, 14-24.
https://doi.org/10.1108/01435129610119593

[32]   Watson, G.H. and Yong, C.F. (2010) Design for Six Sigma: Caveat Emptor. International Journal of Lean Six Sigma, 1, 66-84.
https://doi.org/10.1108/20401461011033176

[33]   Green, F.B. (2006) Six-Sigma and the Revival of TQM. Total Quality Management & Business
Excellence, 17, 1281-1286.
https://doi.org/10.1080/14783360600753711

[34]   Kwak, Y.H. and Anbari, F.T. (2006) Benefits, Obstacles and Future of Six Sigma Approach.
Technovation, 26, 708-715.
https://doi.org/10.1016/j.technovation.2004.10.003

[35]   Ball, P., Tjahjono, B., Vitanov, V.I., Scorzafave, C., Nogueira, J., Calleja, J., Minguet M.,
Narasimha, L., Rivas, A., Srivastava, A., Srivastava, S. and Yadav, A. (2010) Six Sigma: A Literature Review. International Journal of
Lean Six Sigma, 1, 216-233.
https://doi.org/10.1108/20401461011075017

[36]   Volvo (2010) Volvo’s Founders.
http://www.volvogroup.com/group/global/en-gb/volvo%20group/history/volvosfounders/Pages/
volvo_founders.aspx?print=yes


[37]   Volvo (2010) The Volvo History.
http://www.volvogroup.com/group/global/en-gb/volvo%20group/history/volvosfounders/Pages/
volvo_founders.aspx?print=yes


[38]   Volvo (2010) Our Values.
http://www.volvogroup.com/en-en/about-us/our-values.html

[39]   Volvo (2010) Quality Management.
http://www.volvogroup.com/en-en/news/2009/nov/news-72136.html

[40]   Volvo (2010) Our Brands.
http://www.volvogroup.com/en-en/what-we-do/our-brands.html

[41]   Volvo (2010) Vision & Mission Statement.
http://www3.volvo.com/investors/finrep/ar06/eng/fundamentalvalues/pops/printable/6_
vision_mission.pdf


[42]   Volvo (2010) Leadership.
http://www.volvogroup.com/en-en/news/2016/apr/new-leadership-roles-lead-the-way-to-world-
class.html


[43]   Volvo (2010) Manufacturing Quality the Volvo Way.
http://www.volvogroup.com/SiteCollectionDocuments/VGHQ/Volvo%20Group/Volvo%20Group/Our
%20values/volvo_way_eng.pdf


[44]   Karlsson, C. and Norr, C. (1994) Total Effectiveness in a Just-in-Time System. International
Journal of Operations & Production Management, 14, 46-65.
https://doi.org/10.1108/01443579410058522

[45]   Volvo (2010) Volvo Group 2010.
http://www.volvogroup.com/SiteCollectionDocuments/VGHQ/Volvo%20Group/Volvo%20Group/Our
%20values/volvo_way_eng.pdf


[46]   Automotive Intelligence (1999) Volvo Cars Gent Receives European and Japanese Quality Awards.
http://www.autointell.com/european_companies/volvo_cars/volvo-mfg/volvo-ghent-awards.htm

[47]   The Local (2010) Volvo Mulls Recall over Engine Problem.
http://www.thelocal.se/20100504/26436

[48]   Edvardsson, B., Gustafsson, A. and Ekdahl, F. (1999) Customer Focused Service Development
in Practice—A Case Study at Scandinavian Airlines System (SAS). International Journal of Service Industry Management, 10, 344.

[49]   Volvo (2010) Company Culture—The Volvo Way.
http://www.volvogroup.com/group/global/en-gb/career/life%20at%20volvo%20group/ourculture/
Pages/ourculture.aspx


[50]   Volvo (2010) Sustainability Report 2009.
http://www.volvogroup.com/group/global/engb/responsibility/sustreport09/Pages/sustreport2009.
aspx


 
 
Top