Relationships between supply chain capabilities, competitive advantage and business performance: an exploratory study of the food industry in Thailand

Abstract

Thailand is one of the largest producers and exporters of agricultural and food products, and the food industry is also an important major section for Thailand’s economy. While the food industry can generate a high income for the country, its supply chain still contains some problems among different parties. There are a lot of factors that could affect the performance of the food industry’s chain. It is difficult to choose one success factor to be improved since improving one factor could lead to a positive or even a negative impact on another factor. The purpose of this study is to explore the degree of relationships between supply chain capabilities and competitive advantages towards business performance. The data were drawn from 236 food manufacturing companies in Thailand and the measurement scales were tested and validated using structural equation modelling (SEM). The findings provide appropriate supply chain strategies for successful linkage implementation so that management will be able to pursue better supply chain strategic applications directly in their business environment. The proposed model will also provide the causal-effect determinants affecting supply chain performance, to enhance supply chain strategies to meet supply chain goals, and to guide decision makers with pertinent information to implement such strategies.

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