Abstract: How to speed up the supply quality upgrade is an important issue that cannot be ignored for the current Chinese economy. On the basis of systematically combing the existing research results, this paper innovatively proposes a general measure method for the quality capability of the supply side of enterprise, and conducts a comprehensive empirical study on the logical mechanism of management efficiency, quality capability and enterprise total factor productivity. Us⁃ing the CEES data, benchmark regression results show that quality capability has a stronger direct effect on total factor productivity improvement than management efficiency, while the latter has an indirect impact on total factor productivity primarily through improved quality capabilities. On this basis, the empirical test of the instrumental variable method and the treatment effect model finds that the quality capability upgrade has a significant positive causal effect on total factor productivity. Using the identification strategy of propensity score matching, this paper further discovers that management efficiency is an important way to improve the quality capability of Chinese enterprises, and the products quality competitiveness and the allocation of quality factors are two important channels for management efficiency to promote the upgrading of quality capabilities.