Development Model of Increasing Business Performance of Road Transport Enterprises of Eastern Economic Corridor (EEC) in Thailand
DOI:
https://doi.org/10.53848/jlscc.v9i2.262852Keywords:
Model development, Business performance, Road transport enterprises, Eastern economic corridorAbstract
The objectives of this article are 1) to develop a model of a business performance improvement of road transport enterprises in the Eastern Economic Corridor (EEC) of Thailand, and 2) to study the impacts of innovation, green logistics, and sustainable organizational development on business performance of road transport enterprises in the EEC. The population of the study was all 4,318 road transport enterprises in Thailand’s EEC. The stratified random sampling method was used and a sample size larger than 20 times the number of observed variables was selected. Questionnaires were distributed to a sample of 336 enterprises. The questionnaire’s relevance and reliability were assessed using an Index of Item Objective Congruency (IOC) and Cronbach’s alpha coefficient. A statistical software was used to analyze the collected data, using Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM). Results showed that the model fitted well with empirical data. All of these factors positively correlated. Factors that had the highest direct, positive effect on business performance of road transport enterprises were innovation, followed by green logistics and sustainable organizational development. Moreover, it was found that innovation and green logistics indirectly and positively affected the performance of road transport enterprises. The data suggested that road transport enterprises in the EEC should consider and implement innovations relevant to their business. Moreover, there is a need to move towards environmentally friendly logistics, to sustainably develop the business, improving the performance, and increase their competitiveness.
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