THE CAUSAL FACTORS AFFECTING SUPPLY CHAIN MANAGEMENT AND BUSINESS PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES UNDER THE TRANSPORT SERVICE SECTOR IN THAILAND

Abstract

This research aimed to (1) study causal factors affecting supply chain management and business performance of small and medium enterprises under the transport service sector in Thailand, (2) to verify the consistency between a model and empirical data. The sample consisted of business entrepreneurs of small and medium enterprises under the transport service sector in Thailand. Stratified sampling technique was used to select the sample. A questionnaire was used to collect data from 360 respondents. Study results indicated that (1) causal factors comprised 3 major components as customers were at the center (customer-centric approach), which there were 3 subcomponents, i.e. participation with customers, response to individual demand, and customer experience Digital technology had 4 subcomponents which included ability of technology acquisition, ability to use technology, ability to adapt technology, ability to create technological innovation. Business network had 3 subcomponents as business alliance, trade partner, joint venture. Supply chain management had 6 subcomponents as operation planning, operation support, raw material sourcing, production, transportation, return policy. Business performance had 2 subcomponents as financial and non-financial performance, (2) the verification of consistency between the model and the empirical data indicated that the model was consistent with the empirical data based on the consideration of goodness of fit index, i.e. Chi-Square/df, CFI, GFI, AGFI, RMSEA, SRMR , and Largest Standardized Residual which could pass all the determined value.