Structural Equation Model of Factors Influencing Supply Chain Management Practice of Community Enterprises
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Abstract
This research aims to examine the factors influencing the supply chain management practice of small and micro community enterprises in the three southern border provinces. Data were collected from 463 respondents including the presidents and committee members of strong micro community enterprises. Data were analyzed through structural equation modeling and the results fitted perfectly with the empirical data. Based on these results, the transformational leadership and entrepreneurial orientation have positive effects on supply chain management practice while knowledge integrating capability has no effect on supply chain management practice. Therefore, one way to empower the knowledge integration and supply chain management practice is that the president of the community enterprise should take part in the discussion and share the knowledge for developing the products within the group and among the community enterprises in order to create competitive advantages. In addition, the presidents of community enterprises should wak with government agencies in promoting micro community enterprises so that knowledge sharing can be enhanced and future cooperation can be fostered.
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