Managers quality and performance perceptions: the case of the Korean semiconductor industry

Abstract

Quality is a multidimensional concept. As a result, managers have different perceptions about 'quality', defining it in diverse ways. The primary objective of this research is to investigate how managers in the semiconductor industry perceive quality, using the multidimensional perspectives developed in the literature. Through factor analysis, we identify three comprehensive dimensions of quality: transcendent, production-based and value-based. In addition, we propose that the managers have different ideas about the relationship between quality and performance. That is, we want to investigate which performance measures the managers believe they can improve by enhancing the quality. For this question, we group key performance measures into four components: productivity-related, customer-focused, system-related and market share. Finally, we examine the correlation between quality and performance perceptions. The research results indicate that there is indeed significant correlation: the managers who view quality from the value-based perspective most strongly believe that enhancing quality is an effective way to improve key performance measures of their company.