AN INNOVATION SUPPLY CHAIN MANAGEMENT MODEL TO ENHANCE THE ADAPTABILITY OF LARGE LOGISTICS SERVICE PROVIDERS IN THAILAND

Abstract

The objectives of this research article were to 1) confirmatory factor analysis to study the components of supply chain management innovation in enhancing the adaptability of large logistics service providers 2) the goodness of fit test to develop a model of supply chain management innovation in enhancing the adaptability of large logistics service providers and 3) to propose the guidelines in enhancing the adaptability of large logistics service providers. This study used mixed methods research as a research design. The research population was managers of large logistics service providers based on the proportional randomization to organization size. A sample size was 330 companies. The probabilistic random sampling was conducted by drawing lots. A questionnaire was used as a research instrument for data collection with a reliability of 0.992 and in-depth interview was conducted to collect data from 15 executives managing directors. The analysis of component data and hypotheses testing were conducted by using structural equation analysis and content analysis. The results of this research indicated that the model of supply chain management innovation in enhancing the adaptability of large logistics service providers that consisted of innovative products/services, process innovation organizational innovation and competitive advantage. The results of analyzing the goodness of fit indices revealed the parameter values as follows: CMIN/df = 0.725, Value = 0.927, GFI = 0.986, AGFI = 0.966, RMSEA = 0.000, CFI = 1.000, NFI = 0.994. The findings implied that the developed model was consistent with the empirical data. The guidelines in enhancing the adaptability for large logistics service providers include that it is imperative to realize and focus on supply chain innovation management which directly and indirectly influence the performance of logistics service providers by developing and enhancing innovative products/services, organizational innovation, process innovation. In addition, emphasis should be placed on quality management practices and the organization's adaptability that affects the performance of large logistics service providers in creating a competitive advantage that creates internal learning culture. Furthermore, it is essential to enhance expertise, skills, knowledge, and performance among staff so that the organization has the potential as logistics service providers to be internationally accepted and trusted from their clients.