International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Supply Chain Management and Logistics Service Competency Influencing Logistics Performance of Palm Oil Entrepreneurs in Southern Thailand

Author(s): Phutthiwat Waiyawuththanapoom, Preecha Wararatchai

The palm oil industry in the country are suitable for implementing logistics and supply chain management systems in business administration since it is a highly competitive industry. This research, therefore, aims to study the levels of Supply Chain Management (SCM), Logistics Service Competency (LSC) and Logistics Performance (LP) of palm oil entrepreneurs in Southern Thailand, to study the direct effect of SCM on LSC and LP, and to study the indirect effect of SCM on LP. The sample was 300 palm oil entrepreneurs in Southern Thailand listed in the database of the Department of Internal Trade, Ministry of Commerce of Thailand, arisen from 20 times of the variables in the research model and stratified random sampling by area, divided into upper and lower southern regions. The research instrument was a questionnaire. The statistics used for data analysis were frequency, percentage, mean, standard deviation, confirmatory factor Analysis, and structural equation modelling. The results showed that the SCM, LSC, and LP were at a high level. In addition, SCM had a positive direct effect on LSC and LP and had a positive indirect effect on LP by the mediation effect of LSC. These findings can be guidelines for palm oil entrepreneurs to improve the business's logistics performance. Government agencies, besides, can use the research results to formulate a policy for helping palm oil entrepreneurs. Moreover, academicians and interested people can bring the findings to study and conduct additional research in the future.

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