Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Guidelines for Innovation Development for Increasing Logistics Efficiency of Manufacturing Industrial in Thailand

Author(s): Sudawan Leepaitoon, Pannarai Lata, Sakrapee Worawattanaparinya

Aim: The objective of this research was to study the guidelines for innovation development for increasing logistics efficiency of manufacturing industrial in Thailand.

Methodology: This research was an inductive research with mixed-methodology research including the qualitative research through in-depth interview and the quantitative research by collecting the quantitative data of 500 workplaces which received the rewards or standard organizations on the supply chain system management, production and manufacturing, transportation, warehouse or inventory of the logistics divided into large enterprises, small and medium enterprises to analyze and improve the structural equation model (SEM). And finally, the structural equation model was fit an in accordance with empirical data.

Finding: The results of the research revealed that the guidelines for innovation development for enhancing the logistics efficiency of manufacturing industrial with the highest means consisted of (1) logistics knowledge management i.e., providing the employees a chance to further study logistics to enhance their knowledge and skills, (2) contemporary technology i.e., exchanging the technology, data, information both in the internal and external organizations through the internet system, (3) management i.e., appointing the executives with keen vision, foresight, and creativity to lead the organization for the sustainable success, and (4) cooperation network i.e., setting the updated and easily accessible customer’s database system. For the result of hypothesis test, it was found that large enterprises, small and medium enterprises weighed the guidelines for innovation development for increasing logistics efficiency of manufacturing industrial in Thailand with the difference at the statistically significant level of 0.05.

Conclusion: This research could be concluded that the innovation development of logistics helped the organization reduce the operation costs to create the basis of enhancing the logistics capacity and entrepreneurs’ international competitiveness. The results of the structural equation model analysis were proved through the evaluation criteria with the empirical data with the Chi-square probability of 0.172, the relative Chi-square of 1.104, the correlation index of 0.964, and the root index of the mean square of the error estimate of 0.014.

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