| The problem under study was to identify key factors that could be defined as a supplier selection model for small and medium sized buying firms to ensure their Chinese suppliers' ability to provide quality products.;The study developed two different types of surveys to collect information from both Chinese suppliers and their buying firms. The samples for Chinese suppliers included 47 suppliers, and the samples for Chinese suppliers' buying firms included 17 companies.;This research used the multiple linear regression models to perform data analysis. The seven independent variables were supplier selection methods, supplier development efforts, quality management practices, Chinese firms' ownership types, Chinese Guanxi, length of business relationship, and buying firms' volumes. The dependent variable was the quality performance, measured by incoming rejection rates.;The result indicated that quality management practices, Chinese firms' ownership types, Chinese Guanxi, length of business relationship, and buying firms' volumes had no significant impact to quality performance. However, supplier selection methods and supplier development efforts had a significant impact upon quality performance. When a buying firm opened a local facility in China, the incoming rejection rates would be reduced by 45.1%. When the result of a buying firm's supplier development efforts with Chinese suppliers was improved to a higher level, the incoming rejection rates would be reduced by 32.2%.;The study also provided the following recommendations for further research: (1) compare the differences in total costs among opening an International Purchase Office (IPO), using an outsourcing firm, and sending company personnel to travel abroad; (2) analyze the trend that inspection service companies in China are used, and understand the long term impacts to both the inspection companies and their clients; (3) investigate sourcing companies' impacts to Chinese supplier's quality performance; and (4) compare the differences in buying firms' supplier development activities in China. |
