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