Strategic Alignment and its Relationship to the Cost of Quality: An Experimental Study in the Jordan Chemical Industries Sector

Abed Al-Sattar Mustafa Al- Sayah, Mohammed Izzat Al –Halalmeh

Abstract


The research considered the relationship between strategic alignment and quality costs in the chemical industry companies. This paper provided an effective concept and tool to link strategic alignment with quality and related costs, through considering five companies operating in the chemical industry sector. Analysis results demonstrated that the strategic alignment is a strong predictor of quality and related costs. We found out evidence that the strategic alignment of the research sample was fragile and weak: (1) variation in the level of strategic balance variables in the surveyed organizations; this was clear in the unequal sides of the strategic alignment square, in that it was: 19 points for strategy, 25 points for personnel, 33 points for production processes, 20 points for customers; and (2) there is a full gap separating surveyed organizations from their raison d'être – these were analyzed and evaluated (63 points of the weight 160). Research aimd to respond to intellectual and practical dilemmas through creating theoretical ideas about the former, and expressing the latter by a model and four hypotheses, reflecting significant relations between research variables. Data were collected from 95 personnel at the top management and Board of Directors level, using a questionnaire including two variables namely: (1) the strategic alignment expressed as: strategy, personnel, production processes and customers (2) quality costs expressed as: prevention costs, detection and testing costs, defect costs. That was based on visions and ideas of (Rodchua,2006);)Companalla, 1990); (Labovitz & Rosansky, 2000); (Kaplan & Norton, 2007), and hypotheses were tested based on Spearman correlation with a confidence limit P£0.05.

Keywords


Strategic Alignment, Quality Costs, Strategy, Personnel, Production Processes, Customers, Prevention Costs, Detection And Testing Costs, Defect Costs, Jordan Chemical Industries.

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