The purpose of this study is to empirically examine the quality competence as a source of competitive advantages. The relationship between quality priority and competitive priority, and the relationship between quality competence and competitive capability are investigated using data collected from 114 manufacturing business units of 75 manufacturing companies. Several measures are used to characterize competitive strategy and value chain, and quality factors including conformance, reliability, durability, performance, and customization. The result indicates that the quality competence paired with competitive strategy positively influences the level of competitiveness, but management performances are not strongly correlated with quality competence.