A structure equation modeling of logistics capability on firm performance of autopart manufacturing industry in Thailand

Abstract

The objectives of this research were to investigates the effects of innovation capability, flexible capability, service capability on logistics performance and marketing performance. In addition, this study examined whether logistics performance affects marketing performance. Also, the effects of logistics performance and marketing performance on financial performance were tested. The studied samples in this research consisted of 430 autopart manufacturers in Thailand. The study was conducted through questionnaires, and data were analyzed by using descriptive and inferential statistics in terms of percentages, means, standard deviations, and hypothesis tests with confirmatory Factor Analysis (CFA). Responses from 430 questionnaires showed that most manufacturers were Thai nationality with registered capital of less than 50 million baht, the average number of employees was 178.74, and average business age was 28.14. Most respondents were male with bachelor degree, average 37.12 years old, and in the position of assistant managers with an average 18.34 years of experience. All hypotheses were tested. The results showed that innovation capability, flexible capability, and service capability positively affect logistics performance and marketing performance at the significant level of .01. Logistics performance positively affects marketing performance at the significant level of .01. Logistics performance and marketing performance positively affect financial performance at the significant level of .01.