The influence of competitive strategy and organizational structure on the cost of quality in food and beverage (F&B) companies

Abstract

Purpose

This study aims at determining the influence of the competitive strategy types and organizational structure dimensions on Cost of Quality (CoQ) in Food and Beverage (F&B) small- and medium-sized enterprises (SMEs).

Design/methodology/approach

A survey questionnaire was sent to F&B companies in Greece and 307 responded positively and fully completed the questionnaire. The research model developed (consisting of the competitive strategy types, the organizational structure dimensions and CoQ) was tested using the exploratory and confirmatory factor analyses and the structural equation modeling (SEM) technique.

Findings

The findings indicated that cost leadership, centralization and formalization influence the CoQ positively and significantly. By contrast, differentiation does not influence CoQ.

Research limitations/implications

The small sample of the responding companies operating in one country, the different F&B sub-sectors, the subjective perceptions of only one representative per company and the cross-sectional nature of the study are the main limitations of the present study.

Practical implications

This paper provides academicians and practitioners with a better understanding of the factors that influence the quality-cost level.

Originality/value

To the best of the authors' knowledge, this is the first study that examines the effect of competitive strategy and organizational structure on CoQ.

Citation

Dimitrantzou, C., Psomas, E. and Vouzas, F. (2024), "The influence of competitive strategy and organizational structure on the cost of quality in food and beverage (F&B) companies", The TQM Journal, Vol. 36 No. 8, pp. 2398-2417. https://doi.org/10.1108/TQM-01-2023-0031