The Causal Relationship Model between Supply Chain Absorptive Capacity, Supply Chain Agility and Firm Performance of Instant Food Businesses in Thailand

Main Article Content

Salilathip Thippayakraisorn

Abstract

The purposes of this study were to 1) investigate the causal relationship between supply chain absorptive capacity, supply chain agility, and firm performance of instant food businesses and 2) examine the influences of supply chain absorptive capacity and supply chain agility on firm performance of instant food businesses. The samples were executives and owners of instant food businesses in Thailand’s raw material, manufacturing, and distribution sectors, initially obtained through a stratified random sampling to generate regional sample representatives. A subsequent simple random sampling was applied to include 400 of these individuals. Data were collected by questionnaires, validated for reliability and content validity, and analyzed by descriptive statistics and a structural equation model in AMOS. Results revealed that the causal relationship model was highly consistent with the empirical data. The structural equation model revealed that chain absorptive capacity positively influenced supply chain agility of instant food businesses and firm performance of instant food businesses, and supply chain agility positively influenced firm performance of instant food businesses. These insights could be extremely valuable in managing supply chains to enhance agility, promote operational consistency in times of crisis, and fulfill predetermined organizational performance targets.

Downloads

Download data is not yet available.

Article Details

Section
Research Articles

References

Al Humdan, E., Shi, Y. & Behnia, M. (2020). Supply Chain Agility: A Systematic Review of Definitions, Enablers and Performance Implications. International Journal of Physical Distribution & Logistics Management. 50(2), 287-310.

Bentler, P. M. & Bonett, D. G. (1980). Significance Tests and Goodness of Fit in the Analysis of Covariance Structures. Psychological bulletin. 88(3), 588.

Blome, C., Schoenherr, T. & Rexhausen, D. (2013). Antecedents and Enablers of Supply Chain Agility and Its Effect on Performance: A Dynamic Capabilities Perspective. International Journal of Production Research. 51(4), 1295-1318.

Bollen, K. A. (1989). A New Incremental Fit Index for General Structural Equation Models. Sociological methods & research. 17(3), 303-316.

_________, & Long, J. S. (1992). Tests for structural equation models: introduction. Sociological Methods & Research. 21(2), 123-131.

Chan, A.T., Ngai, E.W. & Moon, K.K. (2017). The Effects of Strategic and Manufacturing Flexibilities and Supply Chain Agility on Firm Performance in the Fashion Industry. European Journal of Operational Research. 259(2), 486-499.

Cho, J.J.-K., Ozment, J. & Sink, H. (2008). Logistics Capability, Logistics Outsourcing and Firm Performance in an E-Commerce Market. International Journal of Physical Distribution and Logistics Management. 38(5), 336-359.

Cohen, W. M. & Levinthal, D. A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative science quarterly. 128-152.

Comrey, A. L. 1992. A first course in factor analysis. (2nd ed.). Hillsdale, N.J.: Lawrence Erlbaum.

Diamantopoulos, A., Siguaw, J. A. & Cadogan, J. W. (2000). Export Performance: The Impact of Cross-Country Export Market Orientation. The American Marketing Association Conference Proceedings (p.177). American Marketing Association.

Duchek, S. (2020). Organizational Resilience: A Capability-Based Conceptualization. Business Research. 13(1), 215-246.

Fayezi, S., Zutshi, A. & O'Loughlin, A. (2015). How Australian Manufacturing Firms Perceive and Understand the Concepts of Agility and Flexibility in The Supply Chain. International Journal of Operations & Production Management. 35(2), 246-281.

Flatten, T. C., Greve, G. I. & Brettel, M. (2011). Absorptive Capacity and Firm Performance in Smes: The Mediating Influence of Strategic Alliances. European Management Review. 8(3), 137-152.

Food Intelligence Center. (2020). Instant Food Market in Thailand. Retrieved September 25, 2020, from http://fic.nfi.or.th/MarketOverviewDomesticDetail.php?id=290. [In Thai]

_____________. (2021). Thai food industry in 2020. Retrieved March 15, 2021, from http://fic.nfi.or.th/foodindustryoverview.php. [In Thai]

Hu, L. T. & Bentler, P. M. (1999). Cut off Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives. Structural Equation Modeling: A Multidisciplinary Journal. 6(1), 1-55.

Kale, E., Aknar, A. & Başar, Ö. (2019). Absorptive Capacity and Firm Performance: The Mediating Role of Strategic Agility. International Journal of Hospitality Management. 78, 276-283.

Knetra, N. & Orapan, K. (2012). Technological and Knowledge Absorptive Capability: Strategic Capability for Thai Automotive Firms. In 5th Sustainable Rural Development Conference Proceedings (p. 3-9). Chicago: American Marketing Association. Khon Kaen: Thailand.

Lane, P. J., Koka, B. R. & Pathak, S. (2006). The Reification of Absorptive Capacity: A Critical Review and Rejuvenation of the Construct. Academy of management review. 31(4), 833-863.

Liu, L. & Luo, D. (2012). Effects of Logistics Capabilities on Performance in Manufacturing Firms. Contemporary Logistics. (9), 8.

Mahalanobis, P. C. (1936). On the Generalized Distance in Statistics. India: National Institute of Science.

Ministry of Industry. (2021). Accumulated statistics, number of factories permitted to operate according to the Factory. Retrieved March 10, 2021, from https://www.diw.go.th/hawk/default.php. [In Thai]

Moryadee, C. & Jitt-Aer, K. (2020). Exploring the Nexus between the Absorptive Capacity, Corporate Sustainability, Supply Chain Agility and Manufacturing Firm Performance. International Journal of Supply Chain Management. 9(2), 360-367.

Natpatsaya, S. (2017). Supply chain agility and Supply chain resilience: An implementation for supply chain of computer industry in Thailand. Academic Journal Phranakhon Rajabhat University. 8(1), 116-127. [In Thai]

Nunally, J. C. (1978). Psychometric theory. New York: McGraw-Hil.

Roth, A., Kristal, M. & Johnson, T. (2010). The Effect of Supply Chain Absorptive Capacity on Customization, Product Innovation and Business Performance. The POMS 21st Annual Conference. (pp. 1-49). Canada. Production and Operations Management Society.

Shekarian, M., Nooraie, S. V. R. & Parast, M. M. (2020). An Examination of the Impact of Flexibility and Agility on Mitigating Supply Chain Disruptions. International Journal of Production Economics. 220, 1-46.

Tabachnick, B. G. & Fidell, L. S. (2001). SAS for Windows Workbook for Tabachnick And Fidell Using Multivariate Statistics. Boston: Allyn and Bacon.

Tse, Y. K., Zhang, M., Akhtar, P. & MacBryde, J. (2016). Embracing Supply Chain Agility: An Investigation in the Electronics Industry. Supply Chain Management – An International Journal. 21(1), 140-156.

Uraiwan, C. & Chayapa, V. (2017). Evaluation of Content Validity for Research Instrument. Journal of Nursing and Health Sciences. 11(2), 105-111. [In Thai]

Wang, M., Asian, S., Wood, L.C. & Wang, B. (2020). Logistics Innovation Capability and Its Impacts on the Supply Chain Risks in the Industry 4.0 Era. Modern Supply Chain Research and Applications. 2(2), 83-98.

Zuñiga-Collazos, A., Lozada, N. & Perdomo-Charry, G. (2020). Effect of Absorption Capacity Acquired on Organizational Performance. International Journal of Innovation Management. 24(05), 1-19.